A buyer in Newark, New Jersey signed a residential purchase contract but was not provided with the Property Condition Disclosure Statement before signing. The seller delivered the disclosure statement three days after contract execution. The buyer reviewed it and discovered several significant issues. Under the New Jersey Residential Property Condition Disclosure Act, what right does the buyer have?
Correct Answer
A) The buyer may rescind the contract within five days of receiving the disclosure statement
Under the New Jersey Residential Property Condition Disclosure Act (N.J.S.A. 46:3C-1 et seq.), if the seller does not provide the Property Condition Disclosure Statement before or at the time of contract signing, the buyer has the right to rescind the contract within five calendar days after receiving the disclosure statement. This five-day rescission right is unconditional — the buyer need not prove any defect or intentional misconduct by the seller.
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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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