Priya is purchasing a resale condominium unit in a New Jersey condominium association. The seller's broker informs Priya that under the New Jersey Condominium Act (N.J.S.A. 46:8B-1 et seq.), the seller is obligated to provide certain documentation before closing. Priya's attorney advises her that she should also be aware that the seven-day PREDFDA rescission right does NOT apply to this transaction. Why is the PREDFDA rescission right unavailable to Priya in this resale transaction?
Correct Answer
D) PREDFDA governs sales by developers of units in registered planned real estate developments; resales between individual owners are not covered by PREDFDA
PREDFDA (N.J.S.A. 45:22A-21 et seq.) is specifically designed to regulate the initial sale of units by developers in registered planned real estate developments, condominiums, cooperatives, and timeshares. The statute's protections — including the requirement to register with the NJREC, provide a Public Offering Statement, and honor the seven-day rescission right — apply to developer-to-buyer transactions. When an individual unit owner resells a condominium unit to another private buyer, the transaction is a resale not governed by PREDFDA. Instead, it is governed by general contract law and the NJ Condominium Act's resale certificate requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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