The NJ Real Estate Commission approved the PREDFDA registration for Greenway Estates, a planned community in Burlington County. After approval, the developer makes significant changes to the development plan, including eliminating a promised community pool and increasing monthly association fees by 40%. Under PREDFDA, what obligation does this trigger for the developer?
Correct Answer
B) The developer must amend the Public Offering Statement and submit the amendment to the NJREC for approval before disclosing the changes to buyers
Under PREDFDA (N.J.S.A. 45:22A-21 et seq.), if a developer makes material changes to the development after the Public Offering Statement has been approved, the developer must amend the POS to reflect those changes and submit the amendment to the NJREC for review and approval. Material changes — such as eliminating promised amenities or substantially increasing association fees — must be disclosed through an amended POS before buyers can be informed and before sales of affected units can continue.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
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