A buyer submits an offer on a condominium unit in a new development in Jersey City, New Jersey. The developer provides the buyer with a Public Offering Statement and the buyer signs a purchase contract. Under the Planned Real Estate Development Full Disclosure Act (PREDFDA), how many days does the buyer have to rescind the contract after receiving the Public Offering Statement?
Correct Answer
D) Seven calendar days after receiving the Public Offering Statement
Under New Jersey's Planned Real Estate Development Full Disclosure Act (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 seven calendar days after receiving the Public Offering Statement to rescind the purchase contract without penalty. This rescission right is a mandatory statutory protection that cannot be waived by contract.
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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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