If five siblings own a property, how many must submit a rescission notice to void the loan in a refinance transaction?

If five siblings own a property, how many must submit a rescission notice to void the loan in a refinance transaction?

• A. All five
• B. Three
• C. Any one of the five
• D. Two

Answer: (C)

In a refinance transaction, the ability to void the loan through a rescission notice is typically based on the rights of any co-borrower or owner of the property. Since all five siblings share ownership of the property, the law allows for any one of them to initiate the rescission process. This means if any one sibling submits a rescission notice, it is sufficient to void the loan. It is important to recognize that the right of rescission is part of consumer protection regulations, which are designed to allow borrowers the opportunity to reconsider their commitments after the loan has been executed. In this case, it reflects the flexibility afforded to co-owners in exercising their rights related to refinancing, thus making it clear that unanimous action is not required.

In a refinance transaction, the ability to void the loan through a rescission notice is typically based on the rights of any co-borrower or owner of the property. Since all five siblings share ownership of the property, the law allows for any one of them to initiate the rescission process. This means if any one sibling submits a rescission notice, it is sufficient to void the loan.

It is important to recognize that the right of rescission is part of consumer protection regulations, which are designed to allow borrowers the opportunity to reconsider their commitments after the loan has been executed. In this case, it reflects the flexibility afforded to co-owners in exercising their rights related to refinancing, thus making it clear that unanimous action is not required.