Quick Answer
N.J.S.A. 45:22A-26 is the section of the Planned Real Estate Development Full Disclosure Act that stops a developer from selling in a New Jersey condo or HOA project until it is registered, requires the buyer to receive a public offering statement on or before the contract date, and gives the buyer a seven-calendar-day right to cancel without cause. Since January 8, 2024, the developer must also make its structural inspection and preventive maintenance reports available to prospective buyers before contract.
At a Glance
What the Law Says
Registration and public offering statement
Unless exempt, "no developer may offer or dispose of any interest in a planned real estate development, prior to the registration of such development with the agency." The developer may not dispose of any lot, parcel, unit or interest unless it "delivers to the purchaser a current public offering statement, on or before the contract date of such disposition." The statute does not itself name the agency in this subsection. Under the Act the agency is the Department of Community Affairs, which administers it (see our PREDFDA overview).
Seven-day cancellation right
A purchase contract "may be canceled without cause by the purchaser by sending or delivering written notice of cancellation by midnight of the seventh calendar day following the day on which the purchaser has executed such contract." Every contract must contain, "in 10-point bold type or larger, directly above the space provided for the signature of the purchaser," this notice: "you have the right to cancel this contract by sending or delivering written notice of cancellation to the developer by midnight of the seventh calendar day following the day on which it was executed. Such cancellation is without penalty, and any deposit made by you shall be promptly refunded in its entirety."
The same notice must be "conspicuously located and simply stated in the public offering statement" (subsection c). The developer "shall make copies of the public offering statement freely available to prospective purchasers prior to the contract date of disposition" (subsection d).
New subsection (e): structural and maintenance reports
Added by P.L.2023, c.214: "The developer shall make copies of any written report or document prepared pursuant to sections 3 or 9" of that act "available to prospective purchasers prior to the contract date of disposition." In the codified numbering, section 3 is the structural inspection section (52:27D-132.4) and section 9 is the developer's preventive maintenance document (45:22A-43.1). See our page on covered building inspections and our page on the preventive maintenance document.
What This Means in Practice
For buyers
The seven-day clock starts the day after you sign, and the notice must be sent or delivered by midnight on the seventh calendar day. Our reading: sending written notice by that deadline is what counts, not receipt, because the statute says "sending or delivering." Keep proof of the date you sent it.
You can ask for the public offering statement and any structural inspection or preventive maintenance documents before you sign. The developer must make them available before the contract date.
For boards and associations
This section regulates the developer-to-purchaser sale, not the association. A board's practical interest is in the reports: they are the first records of a building's structural condition and maintenance schedule, and the developer later has to deliver the maintenance document at turnover.
What the section does not say
The section does not state a penalty for selling before registration or for a contract missing the bold notice. It does not say what happens to a buyer who misses the seven days. It does not list the exemptions ("unless otherwise exempted"); those sit elsewhere in the Act and in Department rules. We did not review the exemptions, so confirm with counsel whether a particular sale is exempt.
Open questions
We read the section as printed in the enrolled bill (P.L.2023, c.214). We did not compare it to the current official codification, and any later amendment would not appear in what we read. Confirm the current text before relying on it.
Timeline
Related New Jersey Law
- Planned Real Estate Development Full Disclosure Act overview
- P.L.2023, c.214, structural integrity and reserve law
- 45:22A-43.1 and 45:22A-47.1, maintenance document and turnover
- 52:27D-132.4, covered building inspections
- N.J.A.C. 5:26 regulations overview
Board Checklist
- If the community is still in its sales period, confirm the developer's registration is on file with the Department of Community Affairs.
- Keep a copy of the public offering statement the developer is giving purchasers.
- Ask the developer whether structural inspection or preventive maintenance reports exist and have been offered to buyers.
- Route buyer questions about cancellation to the developer, not the association.
- File the reports you receive with the association records for use at turnover.
Frequently Asked Questions
How long do I have to cancel a New Jersey new-construction condo contract?
Until midnight of the seventh calendar day after you executed the contract, by sending or delivering written notice of cancellation to the developer.
Do I get my deposit back?
The required contract notice says cancellation is without penalty and the deposit "shall be promptly refunded in its entirety."
Do I need a reason to cancel?
No. The statute says "without cause."
Does this apply to resales between owners?
The section regulates developers disposing of interests. It does not describe resales by individual owners. Ask counsel if the seller is a developer or an owner.
Can a developer sell before the project is registered?
Not unless exempt. The statute says no developer may offer or dispose of an interest before registration with the agency, "unless otherwise exempted."
Do buyers get structural reports?
If the developer prepared a structural inspection report or a preventive maintenance document under P.L.2023, c.214, it must make copies available to prospective purchasers before the contract date.
Where This Comes From
We read the enrolled text of P.L.2023, c.214 on the Legislature's session law site, which reprints section 6 of P.L.1977, c.419 (45:22A-26) as amended. We did not read the pre-amendment 1977 text, the exemptions, or the Department of Community Affairs regulations on public offering statements.
How APM Helps
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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed New Jersey attorney before acting.
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