Have Questions about the Attorney Review in New Jersey? Experienced Real Estate Lawyers Answer Top FAQs

Buying or selling a house can be an exciting time of change! Saying goodbye to something you have outgrown and moving on to something new is a beautiful experience, but making an offer on the house does not mean the deal is done. The attorney review can be a stressful time. New Jersey requires the sale contract reviewed by the attorneys for the buyer and the seller. There are three business days to get the contracts to each party. If there is no opposition to the agreement within three business days, it is binding. A lawyer is not obligatory, but the contract is mandatory.

Once you make a decision of purchasing a home, there are a series of stages that spring into action; one of the first and most important of them is the attorney review. This is a critical cornerstone stage, and everything should be properly written in the contract. Retaining a seasoned real estate attorney who is familiar with state legislation and all of its complexities can substantially benefit you when negotiating the right terms in the contract where both parties agree. Then, it’s possible to transition to the next step and you are closer to your goal of finalizing the deal.

At Chamlin, Uliano & Walsh, we have reviewed numerous contracts for highly satisfied clients in Freehold, Colts Neck, Monmouth Beach, Asbury Park, Holmdel, Neptune, and across Ocean and Monmouth County. For an initial free legal consultation with one of our real estate attorneys, we invite you to contact our office here or call (732) 440-3950. You undoubtedly have questions; we have answers.

One of our knowledgeable New Jersey real estate lawyers explains the meaning of attorney review.

Who Reviews the Contract During This Period?

A lawyer for the seller and another for the buyer review the contract.

For What Reasons Can the Contract Be Canceled?

Either party may cancel the contract for any reason. If the seller cancels it, they usually receive a better offer on the house. If the buyer cancels it, usually they have found a place they like more or do not like the buyer’s conditions.

What is a Notice of Disapproval in the Attorney Review?

After reading the contract, the client and attorney decide if any changes need to be made. A form will be sent to the other party called a “Notice of Disapproval” that formally voids the contract. Then the objecting party prepares the changes they would like to see. The negotiation has not stopped even though the contract is no longer valid. Also, the review period is extended as soon as changes have been made to the contract.

What is the Process for Serving a Canceled Contract?

Within the three days, if an attorney for the buyer or the seller reviews and dislikes the contract, the broker or real estate agent and the other party. A letter of disapproval must be sent in a manner that arrives before the three days, such as email, telegram, courier, or delivered in person. Suggestions regarding revisions to the contract that would make it better can also be given to the broker.

Is It Possible To Make Some Changes After the Review is Performed?

If there aren’t any modifications made during the review and the contract is returned to the seller, it is considered binding. If both parties have made and accepted changes, the document is also critical. Suppose changes are suggested after the review. In that case, the review will continue until one party rejects the deal or modifications continue to be made until an agreement is reached.

What Happens if the Contract isn’t Canceled?

If the contract isn’t canceled, the buyer and their lawyer add a “rider,” which contains the changes they want in the agreement. The seller can also have a rider. An example of the items in a buyer’s rider is structural repairs, appliances included in the sale, fumigation (if necessary), roof repairs, correction of environmental issues such as mold or radon. If the buyer does not want to make the required repairs, the asking price for the property or closing costs can be negotiated. A seller may have the following in their rider:  exclude requests for cosmetic repairs, proof that the buyer has enough money to pay the down payment, the buyer is responsible for title company costs, reserving the right to make repairs, and have a limit on required costs for certificates of occupancy.

What are the Steps After the Attorney Review in New Jersey?

After the attorney review, several events take place.

First is the inspection. It must be held within 14 days of having signed the contract. As the interested party, the buyers hire a professional, licensed inspector who will examine the property and make a report detailing the necessary repairs. Some will be marked as urgent or unsafe and others as needed but not dangerous. Often, buyers request a lowered purchase price if the seller is not interested in making the renovations.

The second is financing. The buyers present proof of employment, bank statements, and financial papers. The lender offers approval after credit checks have been run, called a “mortgage commitment,” which means the lender is prepared to provide the money necessary to purchase the property.

The third is to clear the title when the property’s chain of ownership is investigated in county records. It is also to make sure the seller doesn’t have any court judgments against them that haven’t been paid and could mean hefty fines for the property’s new owners. Lastly is the closing, a series of important documents such as the deed, the title, the execution of the promissory note, the signing of the mortgage, and any other documentation requested by the lender.

Rely on Our Seasoned Real Estate Team of Lawyers to Handle the Review of the Contract for Your Home in Middletown, Red Bank, Rumson, Middletown, Freehold, and other Jersey Shore Communities

Buying or selling a house can be as thrilling as it is anxiety-provoking. It’s important to have someone you can count on to take you through the whole procedure. Unfortunately, it isn’t as easy as a financial transaction, a few signatures and done.

Hiring a lawyer for a review to sell or buy a house is smart, especially if you are a first-time buyer or haven’t purchased a home for many years. The attorney review is an opportunity to negotiate the best deal for you. An experienced real estate lawyer can negotiate a deal that will leave you happy with your new house or the deal you made selling your home.

At Chamlin, Uliano & Walsh, we understand the importance of a detailed attorney review, and we are prepared to go the extra mile for you. Our lawyers provide counsel for clients who want to purchase and sell their real estate assets in Shrewsbury, Belmar, Lavallette, Tinton Falls, Manasquan, Howell, Wall, and neighboring places in Southern New Jersey. Call us at (732) 440-3950 or look for us online to get help in a free consultation.