What is the consequence for a developer who does not comply with legal documentation requirements before selling units?

The consequence of a delay in offering units for sale is significant in the context of real estate development. When a developer fails to comply with legal documentation requirements—such as filing necessary disclosures, obtaining proper permits, or ensuring that all sales contracts meet state laws—this can halt the sales process. Legal documentation serves to protect both the buyers and the developer and ensures that all transactions are transparent and compliant with regulations.

This delay can arise because potential buyers may be unable to purchase units until all necessary legal requirements are met. Additionally, if the errors are substantial, the developer might need to take time to rectify these issues, further prolonging the sales timeline. Such setbacks can impact cash flow, future sales strategies, and overall project viability. Thus, ensuring compliance with documentation before marketing or selling units is essential for timely and successful sales operations in the real estate development industry.