Sandra is selling her single-family home in Montclair, New Jersey. She accepts an offer from Tom and they execute a purchase agreement. Sandra has not yet provided Tom with the Property Condition Disclosure Statement. Three days after signing, Tom receives the disclosure statement from Sandra's agent. How many days from receipt of the disclosure statement does Tom have to rescind the contract?
Correct Answer
B) Tom has five calendar days from receipt to rescind the contract
Under the New Jersey Residential Property Condition Disclosure Act (N.J.S.A. 46:3C-1 et seq.), when the seller does not deliver the Property Condition Disclosure Statement before or at the time the buyer signs the purchase contract, the buyer retains the right to rescind within five calendar days of receiving the statement. Tom received the disclosure three days after signing, so the five-day clock begins upon his receipt.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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