Robert and Susan are purchasing a resale condominium unit in Manchester, New Hampshire. Their agent tells them they have a 5-day right to rescind the purchase agreement after receiving the condominium documents, just like buyers of new condominiums. Is the agent's statement accurate under RSA 356-B?
Correct Answer
B) No, the 5-day rescission right under RSA 356-B applies only to buyers of newly constructed condominiums receiving a Public Offering Statement, not resale units.
Under RSA 356-B (the NH Condominium Act), the 5-day rescission right is specifically tied to the receipt of a Public Offering Statement, which is required only for new condominium sales by a developer. Resale condominium buyers do not receive a Public Offering Statement and therefore do not have the statutory 5-day rescission right under RSA 356-B. The agent's statement incorrectly applies a new condominium protection to a resale transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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