A developer registers a new condominium development with the NJREC under the Planned Real Estate Development Full Disclosure Act (PREDFDA). Before the NJREC has approved the registration, the developer's sales agent begins showing units and accepting deposits from prospective buyers. Which agency has primary jurisdiction to take action against the developer for this premature marketing activity?
Correct Answer
A) The New Jersey Real Estate Commission, because PREDFDA registration and marketing approval falls under its authority
Under PREDFDA (N.J.S.A. 45:22A-21 et seq.), developers of planned real estate developments, condominiums, cooperatives, and timeshares must register with the NJREC and obtain approval before conducting any sales or marketing activities. The NJREC has primary jurisdiction to enforce PREDFDA registration requirements and can take action against developers who market or accept deposits before registration is approved. This is a key NJ-specific rule heavily tested on the state exam.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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