A developer in Bergen County, New Jersey is preparing to sell units in a newly registered condominium development. Before any sales contracts can be signed, the developer must provide each prospective buyer with a specific document and the buyer has a statutory period to cancel. Under the New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA), what document must be provided and how long does the buyer have to rescind?
Correct Answer
B) A Public Offering Statement; the buyer has seven calendar days to rescind
Under N.J.S.A. 45:22A-21 et seq. (PREDFDA), a developer must register with the NJREC and provide each prospective buyer with a Public Offering Statement (POS) before any sales or marketing of units in a planned real estate development, condominium, cooperative, or timeshare. After receiving the POS, the buyer has seven calendar days to rescind the purchase contract without penalty.
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