A developer in Middlesex County, New Jersey is registering a new timeshare development with the NJREC under PREDFDA. Which of the following statements about the developer's obligations and buyer rights under PREDFDA is NOT accurate?
Correct Answer
D) Once the NJREC approves the registration, the developer may advertise units without providing a Public Offering Statement until a contract is signed.
Option D is NOT accurate. Under PREDFDA (N.J.S.A. 45:22A-21 et seq.), the Public Offering Statement must be provided to prospective buyers before they sign a purchase contract — it is not sufficient to provide it only at or after contract signing. The statute requires that buyers receive the POS as a prerequisite to any binding sale, and the seven-day rescission right runs from receipt of the POS. Advertising without providing the POS until contract signing would deprive buyers of the full information they are entitled to before committing to a purchase, contrary to PREDFDA's consumer protection purpose.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
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.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
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