How Long Does Attorney Review of a Contract of Sale Take?

how long attorney review take

Home buying can be one of the biggest financial transactions you will ever experience, making for an experience full of anticipation, anxiety and possibility.

New Jersey law states that a purchase-sale contract becomes binding once both attorneys for both buyers and sellers have reviewed it. Each party can consult their attorneys during this review period to modify or negotiate their contracts as desired.

What is an Offer?

An offer is the expression of willingness by one party to enter into contract that can be accepted by another. An offer can come in many forms, from simple oral statements to written proposals; to determine whether an offer has been made the intention of the parties is also taken into account; in deciding if an invitation to treat has become a firm offer the court uses objective standards that reflect how reasonable people might view such events.

The attorney review period provides your lawyer with one last opportunity to assess and provide edits prior to signing the Contract of Sale. It can take anywhere from several days up to several weeks depending on what issues arise during this phase. In addition to reviewing the Contract itself, your lawyer may also assess documents such as offering plans, financials and board minutes as part of this evaluation process.

Once the attorney review period concludes and the contract has been approved, it becomes “Under Contract,” and is taken off of the market. If it was disapproved during attorney review, either party can withdraw it at any time by simply not renewing it.

As can be imagined, having access to an attorney is critical in any transaction process and helping to clarify all aspects of it. Furthermore, it’s imperative that your lawyer does an in-depth job so all details of your transaction are covered before closing takes place.

Begin your home inspection planning during attorney review, as these must be conducted and presented to the seller before closing. Typically this is accomplished concurrently with fulfilling mortgage contingencies and submitting loan applications.

What is the Inspection Period?

Buyers typically have an allotted period in the contract to assess and investigate a property prior to finalizing a sale. This inspection period allows buyers to back out of a transaction if something unsatisfactory arises – for instance if home inspection finds serious flaws then buyers could request repairs or negotiate for lower sales price.

During the inspection period, sellers should also grant buyers access to documents regarding SPDS (Service Disconnection System) and insurance claims history for the property. If this request is denied by a seller, buyers can cancel their contract and claim back their earnest money deposit.

Regardless, if a buyer is unhappy with the inspection results or refuses to make necessary repairs, they have three business days from when their contingency period started until their seller must respond; should this occur without response they can choose between terminating without penalty, seeking credit, or renegotiation of terms.

Real estate transactions must be approved by both sides’ attorneys in order to be legally binding, typically taking three business days from when both sides received the signed contract to be reviewed by legal advisors (excluding weekends and legal holidays).

Attorney review allows either party to send letters voicing disapproval of certain parts of a contract before its end, usually at midnight on its expiry day.

Buyers may request that sellers cover part of the home warranty costs; additionally they could request credit or seller concessions as compensation to offset some expenses associated with purchasing their new home.

Lawyers representing buyers or sellers may contest specific parts of a title report before its inspection period or within ten days from when the title company delivers their final report.

What is the Contract of Sale?

Contract of sale agreements are legally-binding documents signed by both buyer and seller that transfer property ownership from one to another. Contract details such as price, closing date, property inspections, mortgage contingencies and appraisal contingencies should all be included within. Once both attorneys review it they will decide whether or not it should be approved as-is or modified before it goes out for review – typically three days are given but this review process can extend further if both parties agree in writing to do so.

Real estate transactions often include an attorney review period to allow both attorneys to ensure all essential elements are included. It also gives buyers an opportunity to secure inspection reports that can often play an essential role. If either side believes there is insufficient time allotted for thorough inspection, an extension can usually be requested; most contracts provide for this feature.

During the attorney review period, both seller and buyer attorneys can negotiate the contract terms to meet their clients’ needs. This negotiation may involve numerous exchanges of letters back and forth from each attorney either accepting it as-is or proposing amendments to it.

Tradition dictates that the buyer’s attorney sends out the initial letter. But there’s no hard and fast rule dictating who goes first – often this decision depends on which attorney has an excellent working relationship with their counterpart from the other side.

Note that no house will officially become “Under Contract” until attorney review has concluded, so buyers are advised to schedule home inspections as soon as the attorney review period concludes. This gives them enough time to conduct inspections and request any contractual modifications or repairs suggested by their home inspection results. It’s also wise for buyers to select their lender early on so as to minimize delays during closing process.

What is the Attorney Review Period?

Attorney review allows both buyers and sellers the time necessary to have their chosen attorney review their Contract of Sale before it becomes binding, with this review process potentially including requests for modifications or even termination of the agreement. Usually this review period lasts three days starting the day each party receives signed copies; Saturdays, Sundays or legal holidays do not count toward this three day deadline; it can be extended if both parties agree in writing to extend it further.

At this stage, each party may also request that the other provide certain representations on their behalf, including disclosures regarding property conditions, ownership issues, easements/encroachments/easements/encroachments issues/legal actions/home sales contingencies/tenancies agreements with third parties etc. Attornies can add, delete or modify provisions as needed in the agreement to safeguard their clients’ interests and ensure their client’s interests are safeguarded within it.

The Attorney Review Period allows parties to negotiate any issues that arise in relation to a contract. Negotiations sessions may last hours, days, or even weeks and must ensure all negotiated terms are incorporated into the final document. When they do come together on an agreement, attorneys will draft an addendum (known as a rider) containing these terms that can then be added back onto realtor prepared contracts as addenda ( rider ).

Both parties can then sign the rider to verify it fulfills their individual needs. Any home inspections mandated after attorney review are likely also scheduled at this point.

As this step is so essential to the real estate transaction process, buyers often include various contingencies within specific time frames that must be fulfilled before closing can take place. These usually include inspections, mortgage contingencies and home sale contingencies as well as attorney review periods – all necessary steps in order for Buyer and Seller to move forward with closing. It is therefore crucial that Buyer and Seller work together with an experienced real estate attorney who can keep everything on track and ensure all i’s are dotted and all t’s crossed!