Oregon Real Estate Practice Test

Under what condition can a buyer back out of a real estate contract?

1. Only after a three-day waiting period.

2. If they pay a cancellation fee.

3. If they are not provided a disclosure statement.

4. At any time after the contract is signed.

The correct answer is: If they are not provided a disclosure statement.

A buyer can indeed back out of a real estate contract if they are not provided a disclosure statement. In Oregon, sellers are legally required to provide buyers with a property disclosure statement, which outlines material facts about the property, including its condition and any issues that may affect its value. If the seller fails to provide this required disclosure, it creates a basis for the buyer to rescind the contract. This is crucial for protecting the buyer’s interests and ensuring they have all the necessary information to make an informed decision about the purchase. The other options present conditions that either do not reflect Oregon law or do not establish a legally valid reason for a buyer to back out of a contract. Unlike the premise that suggests a specific waiting period can negate a buyer's obligation, contractual rescission is generally contingent upon disclosure or mutual agreement. Thus, the requirement for a disclosure statement is a key legal provision for contract cancellation in real estate transactions in Oregon.