Introduction to Attorney Review

In New Jersey, the "Attorney Review" period is a critical phase in a real estate transaction. This period allows both the buyer and seller to have their respective attorneys review and possibly modify the terms of a real estate contract after it has been signed.

Duration and Process

The Attorney Review period typically lasts three business days. During this time, either party's attorney can disapprove of the contract, propose changes, or suggest terminating the agreement entirely. If neither attorney disapproves within the three-day window, the contract becomes binding.

Importance of Attorney Review

This period is essential because it offers a final opportunity to ensure that the contract protects your interests. Attorneys may address issues like contingencies, inspection rights, and closing terms, which might have been overlooked during negotiations. It's a safeguard that can prevent future disputes or complications.

Outcomes of Attorney Review

If changes are proposed, the contract is not final until both parties agree to the revisions. If the contract is disapproved, the transaction can be canceled without penalties. If no changes are made, the contract proceeds to the next phase of the transaction.

One Caveat

It is important to keep in mind that the three-day Attorney Review period only applies to contracts prepared initially by the realtors. This is because realtors, who are not licensed attorneys, are prohibited from drafting binding agreements. To get around this issue, the law requires realtor prepared contracts to contain the three-day Attorney Review provision. For this reason, contracts that are prepared by the one of the parties' attorney is not required to include the three-day Attorney Review provision and, therefore, is binding as soon as it is signed by all the parties. 

Conclusion

In New Jersey real estate, the Attorney Review period is a vital step that ensures the contract is fair and legally sound, giving both parties peace of mind before finalizing the deal.