The borrower must be given a three-day right of rescission for

Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

The three-day right of rescission is a protection under the Truth in Lending Act that applies to loans secured by the borrower’s dwelling and used to refinance that dwelling. Because the question concerns refinancing the borrower’s primary residence, that scenario triggers the rescission period. It doesn’t apply to every loan, nor to refinances of rental properties, and it isn’t limited to rental-property refinances only. So the best choice is a refinance loan of the borrower’s primary residence.