§ 34-36-34.1. Rescission of purchase agreement or action for damages - Limitations of action. (a) Any person who, in reasonable reliance upon any material, false or misleading statements or information published by or under authority from the owner or developer, in advertising and promotional materials, including but not limited to brochures and newspaper advertising, pays anything of value toward the purchase of or acquiring an interest in a condominium located in this state shall have a cause of action to rescind the contract or collect damages from the owner or developer for his or her loss or damages prior to closing of the transaction by which he or she purchases or acquires the interest. After the closing of the transaction, the purchaser shall have a cause of action against the owner or developer for damages under this section from the time of closing until one year after the date upon which the last of the events described in subdivisions (1) through (4) shall occur:

(1) The date of closing of the transaction; or

(2) The first issuance by the applicable governmental authority of a certificate of occupancy or other evidence of sufficient completion of construction of the building containing the apartment to allow lawful occupancy of the apartment; or

(3) The completion by the owner or developer of the common elements and recreational facilities (whether or not the recreational facilities are common elements) which the owner or developer is obligated to complete or provide under the terms of the written contract or written agreement for purchase and sale of the apartment; or

(4) In the event there shall not be a written contract of agreement for purchase and sale of the apartment, then the completion by the owner or developer of the common elements and such recreational facilities (whether or not the recreational facilities are common elements) which the owner or developer would be obligated to complete under any rule of law applicable to the owner's or developer's obligations, provided however that nothing contained herein shall be deemed to create a cause of action otherwise barred by the statute of frauds.

(b) Under no circumstances shall a cause of action created or recognized under this section survive for a period of more than five (5) years after the closing of the transaction.

History of Section. (P.L. 1976, ch. 227, § 1.)