Carlos purchases a unit in a new planned real estate development in Hoboken, New Jersey. The developer provides him with a Public Offering Statement on a Tuesday. Carlos signs the purchase contract the following Monday (six days later) and then attempts to rescind the contract on the following Wednesday (two days after signing). The developer refuses to honor the rescission. Under PREDFDA, which of the following best describes the legal outcome?
Correct Answer
D) Carlos cannot rescind because the seven-day rescission period runs from receipt of the Public Offering Statement, and he waited more than seven days before attempting to rescind.
Under PREDFDA (N.J.S.A. 45:22A-21 et seq.), the seven-day right of rescission runs from the date the buyer receives the Public Offering Statement, not from the date the purchase contract is signed. Carlos received the POS on Tuesday. The seven-day period expired the following Monday (seven days later). Carlos signed the contract on Monday (day 7) and attempted to rescind on Wednesday (day 9 from receipt of POS). Because his rescission attempt came after the seven-day window had already closed, the developer is correct to refuse it.
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Related Topics & Key Terms
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Related Concepts
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
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