A developer in Atlantic City, New Jersey, is selling units in a newly constructed condominium complex. Before accepting any reservation deposits or entering into contracts with buyers, what must the developer do under New Jersey law?
Correct Answer
D) Register the development with the NJREC and provide buyers with a Public Offering Statement before or at contract signing.
Under the New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA), N.J.S.A. 45:22A-21 et seq., a developer must register the planned real estate development with the New Jersey Real Estate Commission (NJREC) before marketing or selling any units. The developer must also provide each buyer with a Public Offering Statement (POS). Buyers have a seven-day right of rescission after receiving the POS. No sales or marketing may begin until NJREC registration is approved.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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