Helen purchases a newly constructed condominium in a registered development in Parsippany, New Jersey. The developer provides her with the Public Offering Statement on Tuesday, October 1st. Helen signs the purchase agreement the same day. On Monday, October 7th, Helen decides she no longer wants the unit and notifies the developer in writing that she is rescinding the contract. The developer refuses, claiming the rescission period has expired. Under PREDFDA, which of the following is correct?
Correct Answer
C) Helen's rescission is timely because the seven-day period runs from receipt of the Public Offering Statement, and October 7th is within seven calendar days of October 1st
Under PREDFDA (N.J.S.A. 45:22A-21 et seq.), the seven-day rescission period runs from the date the buyer receives the Public Offering Statement. Helen received the POS on October 1st. Counting seven calendar days forward: October 2, 3, 4, 5, 6, 7, 8 — the period expires at the end of October 7th (day 7 being October 7th if counting the day after receipt as day 1, or October 8th depending on the counting method). Under standard calendar-day counting where day 1 is October 2nd, the seven-day period ends on October 8th, making October 7th timely. The key principle is that the clock starts on receipt of the POS, not on the signing date.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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