Maria signs a purchase agreement to buy a home in Hoboken, New Jersey. The contract is silent on the issue of the property condition disclosure. Under the New Jersey Residential Property Condition Disclosure Act, if the seller fails to provide the Property Condition Disclosure Statement before Maria signs the contract, what right does Maria have?
Correct Answer
B) Maria may rescind the contract within five calendar days of receiving the disclosure statement
Under the New Jersey Residential Property Condition Disclosure Act (N.J.S.A. 46:3C-1 et seq.), if the seller does not provide the Property Condition Disclosure Statement before or at the time the buyer signs the purchase contract, the buyer has the right to rescind the contract within five calendar days of receiving the disclosure statement. This five-day right protects buyers who did not have the disclosure information at the time of signing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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