Sophia is purchasing a newly constructed single-family home in Middlesex County from a developer. The developer is not registered under PREDFDA because the development consists of only single-family detached homes sold individually, not a planned real estate development. However, the developer refuses to include an attorney review clause in the contract and states that Sophia must sign as-is or lose the home. Sophia's attorney sends a disapproval letter on day two. Which statement is most accurate?
Correct Answer
A) Sophia's attorney review right is valid because the attorney review provision applies to residential real estate contracts in New Jersey regardless of developer preference.
New Jersey's attorney review provision, established by the NJ Supreme Court in Weichert Realtors v. Ryan (1983), applies broadly to residential real estate contracts and cannot be eliminated by a developer's refusal to include the clause. The developer's preference or the absence of the clause in the contract does not waive the buyer's right. Even in new construction transactions not governed by PREDFDA, the attorney review right exists as a matter of NJ public policy. Sophia's attorney's disapproval letter on day two is timely and effective.
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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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