Question

Jerry is interested in purchasing a lot for new construction in a new subdivision. The Commissioner has issued a preliminary public report in this case, allowing the subdivider to take reservations for lot purchases. Does Jerry have any recourse to change his mind?
A. Jerry may change his mind on the lot he has reserved. However, he will not receive a full refund. His refund will be prorated for the amount of time he had reserved the lot.
B. Jerry is under no obligation due to the preliminary public report. His reservation is one in name only and is not legally binding.
C. Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued.
D. None of the Above

Answer 1

Answer:

C. Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued.

Explanation:

Preliminary public report often referred to as Pink report, is a term which describes a form of public report, in which an individual or a developer is allowed to perform advertisements and take reservation deposit monies for purpose of sale or lease of lots, parcels or units within subdivision.

This reservation deposits taken by a developer under a Preliminary Public Report are fully refundable.

Hence, Jerry, may decide to change his mind on the lot he has reserved. Because, accordingly, he is not committed simply because of the reservation. Thus, he may legally back out and receive a full refund, up until the time the final report is issued.