What is a requirement for a developer of residential units with more than 20 units?

The requirement for a developer of residential units with more than 20 units to prepare and file a prospectus is rooted in regulatory standards designed to protect potential buyers by providing essential information about the development. A prospectus generally includes details such as the project's location, the developer's background, architectural plans, financial statements, and other critical information that prospective buyers would need to make informed decisions before purchasing a unit.

This requirement ensures transparency in the real estate market, helping buyers understand what they are investing in. It also informs them of their rights and obligations. By mandating the preparation and filing of this legal document, regulatory bodies aim to prevent fraud and misrepresentation, fostering trust between developers and homebuyers.

Other options are not accurate reflections of the regulatory requirements for developers of larger residential units. For instance, lowering unit prices or relying solely on verbal agreements does not meet the compliance standards necessary in real estate transactions. Similarly, while there may be certain waiting periods for various aspects of property transactions, they don't universally apply to the selling of units in this context as stipulated by regulations.