Buying a house in New Jersey can be complex because it involves multiple steps before finalizing a sale. One of them is the attorney review period, which occurs after a buyer and seller sign a contract. During this time, the attorneys inspect the document for potential risks that can hurt their clients.
If you are a home buyer, understanding the importance of the attorney review period is crucial, as it can offer you essential protections.
A general overview of the attorney review process
When you and the seller sign the contract, both parties can individually consult an attorney to review the contract. The attorneys must accomplish these steps:
- Scrutinize each term of the contract while keeping the clients’ best interests in mind.
- Identify issues that could potentially hurt their clients.
- Send a letter to inform the other party about the proposed changes or disapproval.
- Negotiate changes accordingly.
- Move forward or terminate the contract.
While the standard timeline for the review period is three business days, it can extend until both parties agree on the changes. Afterward, the contract becomes binding.
How the attorney review period protects you
An adequate attorney review period protects you from future inconveniences, such as:
- Removing liens on a house
- Addressing property boundary disputes
- Resolving title issues
Before finalization, your attorney can interpret the contract terms and identify these issues. This offers you the chance to recommend changes or terminate the contract without penalty.
If you wish to terminate the contract during the review period, your attorney will inform the other party about your decision. The seller will not ask for an explanation, and they cannot file a lawsuit for a breach of contract.
Move forward with confidence
In New Jersey, real estate contracts have a mandatory review period clause to help you ensure that the contract is fair. This gives you the chance to potentially cancel for any reason or modify the terms before the contract becomes legally binding.
Although a review period can offer protection, consider reviewing the drafted contract before signing it. This step can help you spot issues at an early stage and allow you to make informed decisions. A real estate attorney can offer advice on whether to proceed or not.