In a refinance transaction, if only John Brown receives a copy of the Notice of Right to Cancel, what is the rescission deadline for both John and Jane Brown?

In a refinance transaction, the Notice of Right to Cancel is a crucial document that informs borrowers of their right to change their minds about a loan within a specified period. Under the Truth in Lending Act (TILA), if only one borrower receives the Notice of Right to Cancel, all parties involved, including those who do not receive the notice, are granted an extended rescission period.

In this case, since only John Brown received the Notice, the rescission deadline is extended for both John and Jane Brown. The law stipulates that if not all borrowers receive this notice, they have a three-year period after closing to exercise their right to cancel the loan. This provision ensures that all parties have adequate time to consider their options and make informed decisions regarding the refinancing.

The three-year rescission period applies even if one party was fully informed, and it emphasizes the importance of ensuring that all parties involved in a transaction are properly notified of their rights. This protection helps maintain fairness in mortgage transactions and upholds consumer rights.