A buyer in Wolfeboro, NH submits an offer on a new condominium unit in a recently completed development. The developer accepts the offer and both parties sign the purchase and sale agreement. The developer then delivers the Public Offering Statement to the buyer on a Tuesday afternoon. The buyer reads the statement and discovers unexpected monthly association fees significantly higher than represented by the developer's sales agent. The buyer wants to cancel the contract. Under RSA Chapter 356-B, what is the buyer's latest deadline to rescind, and what happens to any deposits paid?
Correct Answer
A) The buyer has 5 calendar days from receipt of the Public Offering Statement; all deposits must be returned in full
Under RSA Chapter 356-B (NH Condominium Act), a buyer of a new condominium unit has the right to rescind the purchase agreement within 5 calendar days after receiving the Public Offering Statement. This rescission right is unconditional — the buyer does not need to provide a reason. Upon valid rescission, all deposits paid by the buyer must be returned in full. Because the Public Offering Statement was delivered on Tuesday, the 5-calendar-day period runs through Sunday, giving the buyer until the end of that Sunday to rescind.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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