Oregon Broker PSI Practice Exam

At what point can a buyer back out of a transaction if a disclosure statement is not provided?

1. Only after 72 hours

2. At any time before closing

3. After they have signed a contract

4. Within 24 hours of the offer

The correct answer is: At any time before closing

A buyer can back out of a transaction at any time before closing if a required disclosure statement has not been provided. This principle is essential in real estate transactions, as the disclosure statement contains critical information about the property that enables the buyer to make an informed decision. Without this information, the buyer retains the legal right to withdraw from the transaction to protect their interests. The timeline aspect of the other options does not align with the buyer's rights in the event of a missing disclosure statement. The situation does not impose a required waiting period for backing out, allowing more flexibility for the buyer to reassess their decision based on the necessary information. This option accurately reflects the protections afforded to buyers in Oregon real estate transactions, emphasizing the importance of transparency and disclosure in the process.