Attorney review is an integral component of residential real estate sales in New Jersey, giving attorneys from both parties time to review and revise the contract of sale.
Contract review periods allow buyers and sellers to review any legal protections that might have been missed by their realtor. They usually last three business days from when all parties involved receive an executed agreement of sale.
Time Frame
The Attorney Review Period allows both buyer and seller attorneys to examine the initial contract that has been submitted by their real estate agent for review by legal representatives for both parties. It typically lasts five business days; if no revisions to it occur during that period, then the contract should be considered complete and closed by its conclusion.
Attorney review will involve attorneys reviewing the terms of a contract and may recommend changes or revisions, discussing issues concerning property such as title issues and appraisal values as well as whether any contingencies need to be waived or amended in it.
Once attorneys for both parties have agreed on a final contract, it will be sent over to each side’s lawyers for review and approval or disapproval. If no agreement can be reached amongst them, one side has three days to cancel it unless they and their client can reach an agreement in writing.
As soon as your contract is ready for review by an attorney handling your transaction, make sure that it reaches them quickly for timely review. Otherwise, the review period could expire before you have had enough time to conduct inspections or submit repair requests. Therefore, research home inspectors as soon as possible and set appointments at the same time (ideally with your mortgage lender and application), in order to maximize time available.
Even after reaching an agreement on a contract, there can still be unexpected complications that arise; such as financing issues or property conditions deteriorating further than expected; title problems might prevent an easy transfer of ownership; however, most attorneys include in their contracts an “open deadlines” clause so you will not lose your rights even if a deadline passes without you meeting it in good faith.
Negotiations
Attorney review is an integral step in any real estate transaction that allows both parties to have their contracts reviewed by attorneys representing both buyers and sellers, and provides an opportunity for negotiations between both sides. Attorneys from both buyers and sellers typically meet regularly during attorney review to clarify terms and avoid misinterpretations of contracts by those unfamiliar with real estate contracts containing legal jargon that can easily lead to miscommunication between the parties, leading to disputes that stall or even cease the deal altogether.
Attorney reviews can sometimes cause complications that include miscommunication between buyers and sellers’ attorneys, title issues, mortgage contingencies, or contract interpretation issues. Open dialogue between attorneys can help reduce misinterpretations of contract terms or title problems as well as mortgage contingencies; having open lines of communication between all involved is also vital in speeding up this process. Furthermore, by making sure all necessary documents are ready prior to beginning attorney review process you may prevent potential problems arising such as conducting a thorough title search to identify any existing liens on property boundaries as well as checking that deed was executed correctly or investigating whether there were any existing liens discovered during review process.
Dependent upon the complexity of issues raised, attorney review may require more than three days. In New Jersey, this period begins the day both parties receive an executed contract without weekends and holidays being included; any days used for negotiation or modification do not count towards this three day timeframe.
One of the more frequent issues encountered during an attorney review process is property boundary disputes. Resolving them may require getting new surveys conducted, negotiating with neighbors directly or going to court; any such delays and additional costs can have a major impact on any transaction.
At this critical juncture, both parties should remain calm and maintain control of their emotions. Buyers or sellers may become anxious that other offers could outstrip them and back out from a deal; additionally, both may become worried that their earnest money deposit could be forfeit if a contract cannot be signed by the end of attorney review period.
Inspections
Home inspections are an integral component of attorney review for buyers. A professional can conduct an in-depth examination of a property to detect issues that might not be immediately evident from outside or at open houses, and can alert buyers and lawyers alike of issues not apparent on first glance. Together with your lawyer and client, they’ll discuss any results or potential changes after each inspection is conducted.
At this stage, sellers should discuss any changes they want made to the contract such as adding or subtracting certain clauses such as their right of first refusal, mortgage contingencies and condominium association approval. Any changes or modifications must still be approved by both parties involved.
If either party disapproves of a contract during attorney review, they must inform both their realtor and other party within three days, otherwise it becomes binding as written. Attorneys can agree to extend the review period but still reach an agreement before the deadline passes.
Issues that arise during attorney review can often cause significant delays to closing dates. Depending on its severity, some issues could take days or even weeks to resolve and create major headaches when purchasing or selling property.
Although a standard attorney review period usually lasts only three business days, this can extend depending on factors like contract negotiations or unexpected events. Both sides can agree in writing to extend it if needed. Once all parties agree to the terms of the contract, closing can occur at a title company and involves signing documents such as deed, affidavit of title and promissory note – while also recording transactions and making disbursements accordingly – before buyer and seller take possession of property together, with earnest money often being transferred at this point as well.
Closing
The attorney review process is an integral component of real estate buying and selling transactions. Over a three-business day period, both buyers and sellers can have their respective attorneys review any purchase-sale contract that becomes binding unless either attorney rejects it during this review period. Its goal is to provide both parties involved in a transaction with legal protection during this transaction process.
Attorneys representing both buyer and seller will discuss any modifications they wish to make to the contract of sale with each other and arrive at an acceptable compromise version that will satisfy both parties. Once finalised, it will be sent back to realtors who will then send it back for approval by both attorneys.
Home buyers typically incorporate certain clauses into the contract of sale that reflect their personal circumstances, such as including a home sale contingency to give themselves time to sell their current residence before purchasing another. Other contingencies might include replacement home provisions, use and occupancy agreements or any unforeseen issues which require further discussion or negotiation.
Once both attorneys have approved the contract of sale, it will be sent off to a mortgage company for final approval and processing of a mortgage loan. At this point, it’s essential for buyers to begin making preparations to close on the property by filling out all relevant documents such as loan applications and employment verification forms.
Once the closing date has been set, both parties should work closely with their attorneys and real estate agents to arrange all details related to closing such as title insurance policies and inspections. It is recommended to schedule these inspections soon after ending attorney review so that they may be completed prior to the closing date; this also provides you with an opportunity to request any repairs that were negotiated during attorney review process; typically 7-14 days should allow enough time for you to conduct inspections and present them to the seller for consideration.
