Kevin and Lisa sign a purchase agreement to buy a condominium unit in a newly developed planned real estate development in Cherry Hill, New Jersey. The developer provides them with the Public Offering Statement at the time of signing. Under the New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA), how many days do Kevin and Lisa have to rescind the contract?
Correct Answer
D) Seven calendar days from the date of receiving the Public Offering Statement
Under PREDFDA (N.J.S.A. 45:22A-21 et seq.), a buyer of a unit in a planned real estate development, condominium, cooperative, or timeshare has a seven-calendar-day right of rescission after receiving the Public Offering Statement. This rescission right is a key consumer protection feature of PREDFDA and is frequently tested on the NJ state exam.
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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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