Georgia's right of rescission is an often-misunderstood law that applies only in very specific contexts. While many consumers believe that is a broad consumer protection law, getting the facts will save you some embarrassment before you run down to the sales office demanding your money back.
Scope of the Law
The right of rescission applies only in a single and specific context -- mortgages. You cannot use the right of rescission for any other type of consumer purchase. This includes consumer purchases typically associated with a loan, such as a car purchase. You might, however, be covered under other consumer protection laws in the state such as lemon laws or anti-fraud laws. If you feel that you have been a victim of fraud, contact the state attorney general.
Rescission is a synonym for "cancellation," and it refers to your ability to back out of a home loan even after you have signed off on a mortgage and closed. The law is designed to allow consumers an out in the event of buyer's remorse. You have three days after closing the loan to make your intention to cancel the contract known to the other signatory, your lender, usually a bank.
How to Rescind
If you wish to rescind your part in the loan, Georgia state law requires that you notify your lender in writing within three days. You can deliver this by hand, send it in the form of a telegram or send it via postal mail. If you choose the last option, send via registered mail, return receipt requested. This gives you proof that you sent the notification by the deadline.
What Counts as "Three Days"?
"Three days" is not "three business days," nor is it three calendar days. Three days counts as any day that is not Sunday or a legal holiday. This means that Saturdays count. So, for example, if you sign a contract on a Friday before a three-day weekend, you have until Wednesday of the next week to exercise your right of rescission under Georgia law.
Nicholas Pell began writing professionally in 1995. His features on arts, culture, personal finance and technology have appeared in publications such as "LA Weekly," Salon and Business Insider. Pell holds a Bachelor of Arts in English from the University of Massachusetts at Amherst.