A developer in Ocean County, New Jersey begins advertising and accepting reservations for units in a new timeshare development before registering with the New Jersey Real Estate Commission or providing any Public Offering Statements. Under the New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA), which statement most accurately describes the developer's legal position?
Correct Answer
B) The developer has violated PREDFDA because registration and NJREC approval must occur before any marketing or sales activity.
Under N.J.S.A. 45:22A-21 et seq. (PREDFDA), a developer must register with the NJREC and obtain approval before engaging in any marketing, advertising, or sales activity related to a planned real estate development, condominium, cooperative, or timeshare. The statute requires registration and NJREC approval as a prerequisite to any public offering, including advertising and taking reservations. Beginning these activities without prior registration is a violation of PREDFDA.
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Related Topics & Key Terms
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Related Concepts
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
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