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We have a very unusual situation that I haven’t ran across in my many years in lending. Our borrowers had a piece of property deeded to them with a purchase amount on the deed, however the settlement of the transaction has not happened. We are giving them money in a few days for the purchase amount that is included on the deed. We will be the settlement agent. This is to be their primary residence but they are not currently occupying the property. Do we need to rescind? We are giving them the purchase money but the property was previously transferred.
From what you have described it sounds like it may a residential mortgage transaction, which would be exempt. However, you know the details of the transaction and if you are uncertain if it applies, especially in uncommon circumstances such as this, then you can always extend the right to rescind to the consumer.
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