Rachel is purchasing a condominium in a new development in Quincy, Massachusetts. Her attorney advises her to include a contingency allowing her to review the condominium documents — including the Master Deed, Declaration of Trust, and budget — before being bound by the contract. Under Massachusetts law, which statute governs the required disclosures in condominium sales that make this contingency particularly important?
Correct Answer
B) MGL Chapter 183A, which governs the creation, management, and sale of condominiums in Massachusetts
MGL Chapter 183A governs condominiums in Massachusetts, including the creation, management, and sale of condominium units. It requires specific disclosures in condominium sales, including the Master Deed, Declaration of Trust, condominium rules and regulations, and financial information such as the budget and reserve fund status. A contingency allowing the buyer to review these documents is critical because the condominium documents define the buyer's rights, obligations, and the financial health of the association.
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Related Topics & Key Terms
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Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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