§ 35-8A-408 — Purchaser’s Right to Cancel

(a) A person required to deliver the required documents or report pursuant to Section 35-8A-402(c) or 35-8A-407 shall provide a purchaser of a unit with a copy of the offering statement and all amendments thereto not later than the date of any contract of sale. Unless a purchaser is given the required documents more than seven days before execution of a contract for the purchase of a unit, the purchaser may cancel the contract within seven days after first receiving the required documents or report.
(b) If a purchaser elects to cancel a contract or conveyance pursuant to subsection (a), he or she may do so by hand-delivering notice thereof to the offeror or by mailing notice thereof by prepaid United States mail to the offeror or to his or her agent for service of process. Cancellation is without penalty, and all payments made by the purchaser before cancellation shall be refunded promptly.
(c) If a person required to deliver an offering statement or report pursuant to Section 35-8A-402(c) or 35-8A-407 fails to provide a purchaser to whom a unit is conveyed with the documents required by subsection (a), the purchaser, at the purchaser’s option and in lieu of any rights to damages or other relief, is entitled to receive from that person an amount equal to five percent of the sales price of the unit if the purchaser provides notice of the election to that person in the same manner as described in subsection (b) within six months of the date of conveyance of the unit.

Legislative History

(Acts 1990, No. 90-551, p. 858, §4-108; Act 2018-403, §1.)