A new condominium development in Northern Virginia is selling pre-construction units. A buyer signs a contract and pays a deposit. The developer is required to provide a Public Offering Statement (POS) under the Virginia Condominium Act. The buyer receives the complete POS on a Friday. The buyer decides over the weekend that they want to cancel. By what day must the buyer deliver the rescission notice, and what happens to the deposit?
Correct Answer
D) By Wednesday; the deposit is returned because the rescission was made within the statutory period
Under the Virginia Condominium Act, a purchaser of a new condominium unit may cancel within five calendar days after the later of the contract date or delivery of the current Public Offering Statement. The buyer received the complete POS on Friday, so the five-calendar-day window runs through Wednesday. A timely cancellation is without penalty, so the buyer receives the deposit back.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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