(March 7, 2006) -- Condominium buyers have the right to unilaterally cancel a purchase and sale agreement and get their deposit back if they cancel their offer within the time allotted to them to study the resale certificate and condominium documents.

Buyers also can cancel even if their reason for rescinding the offer isn’t based on information in the documents, according to a January 2006 Connecticut Superior Court decision reported in the Landlaw, a Connecticut Association of REALTORS® newsletter.

In the case, a condo buyer put a $10,000 deposit on a property, signed a purchase agreement, and had an inspection conducted on the home. During the inspection, the buyer was dissatisfied with the condition of the appliances, but failed to notify the sellers within the period stated in the sales contract. Once she received the condo documents, the buyer had her attorney notify the seller that she intended to cancel the purchase and wanted her deposit back.

The seller’s attorney argued that the since the buyer hadn’t negotiated any credit or replacement of the appliances during the timeframe related to the home inspection, her ability to cancel the contract had lapsed.

The Superior Court decided in favor of the buyer, noting that the resale provisions of the Common Interest Ownership Act allow a buyer to cancel a contract as long as it’s done within the stated timeframe for reviewing the condo documents. In Connecticut, the timeframe is within five business days of the receipt of the resale certificate and documents. The provisions don’t require the cancellation to be based on the information in the documentation.

— By Michele Lerner for REALTOR® Magazine Online

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