Contracts for Condos

The contract for resale of a residential condominium unit must include a rider stating that the buyer acknowledges receipt of the condominium documents and that the prospective buyer may cancel the contract within three business days after the date of execution of the contract and receipt by the buyer of the condominium documents. The cancellation period does not begin until the condominium documents have been delivered. A buyer should verify that all documents have been received before signing the receipt for delivery of the documents.If a prospective buyer chooses to timely cancel the contract, a real estate broker may return the escrowed binder deposit to the prospective purchaser without first securing the seller’s permission, provided the broker is notified in writing that the buyer is canceling the contract during the statutory cancellation period. Even if the seller objects, the real estate license law states that the broker may return the deposit to the purchaser without having to notify the Commission of conflicting demands.