What is a Public Offering Statement
in a new subdivision?
The POS is a disclosure document a developer files with the New Jersey Department of Community Affairs and delivers to each purchaser before a contract is signed. It carries the subdivision plan, the deed restrictions, the budget and the right to rescind.
- A Public Offering Statement is a disclosure document a developer files with the New Jersey Department of Community Affairs and delivers to each purchaser before a contract is signed
- It applies in a registered subdivision of five or more lots, and it covers the subdivision plan, the deed restrictions, the budget and the purchaser's right to rescind
- It is the packet that describes what you are buying into rather than just the house, which is why it arrives ahead of the contract instead of alongside it
Term. Written by The JK Realty Group.
A Public Offering Statement, usually shortened to POS, is a disclosure document a developer files with the New Jersey Department of Community Affairs and delivers to each purchaser before a contract is signed. It applies in a registered subdivision of five or more lots. Inside it are the subdivision plan, the deed restrictions, the budget and the purchaser's right to rescind. A buyer in South Jersey meets it when they are buying a lot or a to-be-built home in a new community rather than an existing house.
Say a buyer is choosing a homesite in a new subdivision. Before there is a contract to sign, the POS is handed over, and it is the document that answers questions the house itself cannot: what the rest of the plan looks like, what the deed restrictions will and will not allow on that lot, and how the community's budget is put together.
The POS arrives ahead of the contract rather than with it, which is what makes it a disclosure rather than an attachment. The requirement is in N.J.A.C. 11:5-9.5.
What to ask, and who answers it: your attorney is the one to take the deed restrictions and the right to rescind to, because how any of it applies to your purchase is a legal question rather than a general one. Your agent can tell you how communities like that one usually run day to day, and what tends to change between the plan and the finished street.
Our take
The POS is where a new community's rules are written down, from deed restrictions to the budget. If you are buying a lot in a new subdivision, it arrives before the contract, so read it before you sign.
Have a question about the process? Let's talk.
Related: Buyer's Agent for New Homes in South Jersey South Jersey Residential Real Estate
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Add The JK Realty Group as a preferred source on GoogleGeneral information on how the process runs, not legal advice. How a Public Offering Statement applies to your purchase, including the right to rescind, is a question for your attorney. General information, not advice about any specific property. The JK Realty Group, brokered with OMNI Real Estate Professionals. Equal Housing Opportunity. See our Terms of Use for how we source and credit these posts.
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