Attorney Review in New Jersey can seem very confusing to both residents and non-residents so an explanation seems appropriate. Often buyers have a puzzled look on their faces during the initial consultation when I touch on the subject of Attorney Review. This, in a nutshell, is how the process goes:
- In New Jersey a buyer and seller have the right to get out of a real estate contract within three business days of its execution.
- Cancellation has to be done by an attorney and the word "cancel" mentioned specifically in the letter. The cancellation letter has to be sent by certified mail to all parties involved in the contract. All other correspondence may be sent by email.
- Usually, instead of cancelling a contract, a real estate attorney will disapprove the contract and then make suggestions for changes which generally extends attorney review until such time as the attorneys for both buyer and seller reach mutual agreement on moving forward. These changes reflect careful scrutiny by both attorneys with their clients of the exact terms of the contract.
- In the rare instance that attorneys prepare the contract there is no attorney review period. Generally we, as agents, prepare a "boiler plate" contract, filling in the blanks.
- Individual contingencies for deposit monies, mortgage commitment, closing date, home inspection(s) and any others are usually tied to the conclusion of attorney review, at which point a listing is marked as either Under Contract (UC) or Under Contract, Continue to Show (US)
- If attorney review is still in process, either party can withdraw from the proposed real estate transaction (in effect there is no contract in place during attorney review as it has been disapproved) without giving a reason.
- It is wise to engage the services of a top notch, local real estate attorney who closes multiple numbers of deals a year and whose focus is on residential real estate.
- I can help with attorney suggestions in North Central and Northern New Jersey.
- Note: South Central and Southern New Jersey tend to use Title Companies for the entire process.
For more information on Attorney Review and many other matters related to residential real estate for sellers, buyers and investors feel free to contact me at Lucy@LucyThompsonHomes.com or call 908-347-1888. You can also visit my website at www.LucyThompsonHomes.com or www.LivingInSummit.net. This will help you get answers to questions on residential real estate including the unique process of Attorney Review in New Jersey.