N.J. Admin. Code § 5:26-6.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 5:26-6.6 - Mandatory provisions

(a) Every contract or agreement for the purchase of a lot, parcel, unit or interest in a planned real estate development or retirement community shall contain clauses and provisions to include the following, in addition to the requirement of notice of cancellation as in N.J.A.C. 5:26-6.3:

1. A clause or provision providing that all deposits or money paid under the contract or agreement shall be held in escrow until closing or termination of the contract or agreement, or until a bond or other guarantee acceptable to the Agency is provided. There shall also be stated the name of the institution where the escrow account is located or name of the attorney in whose trust account the funds are deposited and the fact that the escrow will exist for at least the seven day rescission period;

2. A clause or provision that if the contract or agreement is subject to a mortgage contingency, the mortgage commitment be obtained within a specific period of time and if it is not obtained within that time, either party may cancel the contract or agreement upon written notice to the other, without penalty;

3. A clause or provision providing for the right of inspection by the purchaser of the lot, parcel, unit or interest prior to closing. Said inspection shall be within a reasonable period of time prior to closing;

4. A clause or provision providing reimbursement to the purchaser of the cost of title searches or surveys in the event title to a lot, parcel, unit or interest is found to be unmarketable;

5. A clause or provision that the purchaser is receiving a proportionate undivided interest in the common elements and/or facilities and stating what that interest is;

6. A clause or provision stating the type of deed to be given to the purchaser;

7. A statement, near the signature line, stating that the purchaser has received a copy of the public offering statement.

N.J. Admin. Code § 5:26-6.6