Definition
The cancellation of a contract, returning parties to their pre-contract positions.
Example
Federal law grants a three-day right of rescission on most refinances of a primary residence.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Rescission mean in real estate?
The cancellation of a contract, returning parties to their pre-contract positions.
How is Rescission used in practice?
Federal law grants a three-day right of rescission on most refinances of a primary residence.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.