Contracts are one of the cornerstones of real estate transactions. They outline all details, from inspection and repair work plans to closing costs.
New Jersey law grants both buyers and sellers three days from when they receive their contract of sale to consult with an attorney and review or make changes, should any be necessary. Otherwise, its contents become binding as written.
Three Days
Purchase or sale of real estate can be one of the largest financial transactions of your life and should not be undertaken lightly. Both parties involved should take time and consideration in reviewing and understanding their purchase contract for success.
Once negotiations are concluded, Buyer and Seller must sign a document prepared by their realtor – commonly known as a Real Estate Contract.
Real estate contracts must clearly state that they are legally binding agreements that become effective within three business days, and during this timeframe either Buyer or Seller can request legal advice to study, review and modify it as necessary.
Review is conducted by attorneys from both parties involved and may result in approval or revisions to the contract or simply cancellation altogether.
How long the attorney review process lasts is subject to various factors, including its complexity, contract negotiations and parties’ ability to meet their deadlines. On average, however, reviews can usually be completed within three days.
During the three-day attorney review period, both parties can agree upon changes or additions to the contract that will then be implemented by their respective attorneys. Some changes may be minor while others could have significant ramifications on each party’s financial security.
Attorney reviews can extend beyond expected if any issues that require further review arise, which requires immediate notification to both parties and their lawyers in writing that it may be necessary to cancel the contract until such issues can be addressed.
As soon as this step has been taken, the attorney review period ends and the contract becomes legally bind. Once this occurs, attorneys for both sides can proceed with inspections and other aspects of real estate sale; during this period there is no guarantee that a deal will close successfully.
Four Days
If you’re on the market to buy or sell a home, your real estate agent likely mentioned attorney review as a must before closing. This short yet essential period allows both buyer and seller to discuss any concerns with regards to the contract.
At this point, an experienced real estate attorney will meet with both parties and establish what changes need to be made, outlining their rights and responsibilities under the contract. If necessary changes need to be made, an experienced real estate lawyer may disapprove it and send a letter to each side’s lawyer with requests for changes.
Once changes have been approved, attorneys and their clients can proceed to arrange for an inspection for the property. This stage can make or break a deal.
Time frame of attorney review varies based on various factors, including contract negotiations and availability of both parties; however, in general if your contract is well written then attorney review should take no more than three business days (excluding weekends and legal holidays)
However, this does not imply there won’t be obstacles that might slow down the process – one such roadblock being that both parties have competing priorities like finding the ideal home at an acceptable price.
Importantly, when conducting attorney reviews it’s essential to keep in mind that the most efficient method involves prioritizing items likely to influence the outcome of a deal – this will ensure a seamless real estate transaction and positive experiences for all involved.
Six Days
As part of your real estate purchase or sale transaction, it is crucial that the contract you sign meets legal standards and protects your interests. Attorney review is the period following signing where both parties have an opportunity to alter terms before it becomes binding – this period ensures a smooth transaction.
Once both buyer’s and seller’s attorneys receive their fully signed contracts, they commence attorney review. Each party has three days during which to send letters requesting changes; otherwise the contract will be considered approved and legally bind itself.
Timely negotiations between both parties is paramount to their success in any transaction, as both can work closely with their attorneys to understand and tailor a contract that benefits both. Furthermore, should one not wish to go through with it at this stage they may withdraw without incurring penalties.
The three-day attorney review period commences from the day that both parties receive their fully signed contracts, not counting weekends or legal holidays.
After the three-day attorney review period has lapsed, either buyer or seller can request an extension in order to purchase an inspection report before finalizing their contract. This gives more time for gathering the necessary documents and ensures all aspects of real estate transactions are in order prior to closing.
Attorney reviews can often take longer than three days due to contract negotiations or technical issues that arise during the process.
At this stage, both buyer’s and seller’s attorneys will review the contract with their clients to look for any ambiguities in its terms, as well as ensure all required disclosures have been provided and both parties understand their roles within the real estate transaction.
Eight Days
Once you’ve located and made an offer on a home of your dreams, and received approval from both buyer’s agent and seller’s agent to present your deal to them, the next phase in your home buying or selling experience begins – attorney review. This step can be one of the most crucial and nerve-wracking parts of the transaction process as the legalities begin to sink in and take root.
At this stage, it is important to review the finer points of the contract, such as any inspection contingencies and specific requirements unique to your situation. Also consider what legal advice can be offered such as appraisal contingencies or cancellation rights should the property not meet expectations.
New Jersey law generally permits for a three business day attorney review period, beginning the day following when both parties receive fully executed contracts via fax, e-mail or snail mail. Saturdays, Sundays and holidays do not count towards this rule.
A three-day attorney review period is an invaluable way for both buyer and seller to ensure they’re on the same page before finalizing a contract, helping eliminate any last-minute surprises or delays in its signing. Unfortunately, various obstacles can obstruct this process and prolong its duration beyond three days.
Contract negotiations and legal ramifications can present many of the greatest hurdles to completing business deals, leading to attorney reviews which could last weeks or even months, especially if parties involved are still trying to iron out any kinks in a deal. That’s why it’s best to find an attorney that prioritizes your interests above their own.
