Buying a house in New Jersey comes with a step that can surprise buyers who have purchased real estate in other states: attorney review.
If you are buying a home in Monmouth County or anywhere else in New Jersey, understanding attorney review can make the days after your offer is accepted much less confusing. It is an important part of the transaction because it gives both the buyer and seller an opportunity to have an attorney review the contract before moving forward.
Here is what New Jersey home buyers should know.
What Is Attorney Review in New Jersey?
Attorney review is a period during which the buyer and seller can have their attorneys review the real estate contract.
When a contract of sale is prepared by a New Jersey real estate licensee, it must contain an attorney review clause. According to the New Jersey Department of Banking and Insurance, the buyer and seller have three business days from the delivery of the completely signed contracts to consult with an attorney.
During this period, an attorney can review the terms, propose changes, or disapprove the contract on behalf of the client.
This gives buyers and sellers an opportunity to address legal and contractual concerns early in the transaction.
How Long Is Attorney Review in New Jersey?
The standard attorney review period for a contract prepared by a real estate licensee is three business days after the fully signed contract has been delivered.
That does not necessarily mean the entire attorney review process will be finished within exactly three business days.
An attorney may propose changes to the original contract during the review period. The buyer’s attorney and seller’s attorney can then communicate about those changes until acceptable terms are reached.
For this reason, buyers should contact their attorney as soon as their offer is accepted rather than waiting until the end of the review period.
What Does a Buyer’s Attorney Review?
A buyer’s attorney looks at the contract from the buyer’s legal perspective.
Depending on the property and transaction, the attorney may address items such as:
- The purchase price and deposit requirements
- Mortgage and financing provisions
- Home inspection terms and deadlines
- The anticipated closing date
- What fixtures or personal property are included in the sale
- Title related provisions
- Responsibilities of the buyer and seller
- Additional terms that could affect the buyer
The New Jersey Department of Banking and Insurance notes that real estate agents and brokers cannot provide legal advice. An attorney retained by the buyer represents the buyer’s legal interests during contract negotiations and other legal matters connected with the transaction.
Can the Contract Be Changed During Attorney Review?
Yes.
One of the main purposes of New Jersey attorney review is to allow an attorney to propose revisions to the contract.
These changes can clarify responsibilities, modify deadlines, add protections, or address issues that were not fully covered when the initial contract was signed.
This is one reason buyers should avoid assuming that every term in the original contract will remain exactly the same after attorney review.
Can a Contract Be Canceled During Attorney Review?
An attorney may disapprove the contract during the attorney review period in accordance with the attorney review clause. The New Jersey Department of Banking and Insurance explains that an attorney may propose revisions or render the contract null and void during the review period.
Because the exact circumstances can depend on the contract and communications between the parties, buyers should discuss any decision about canceling a transaction directly with their attorney.
Do You Have to Hire an Attorney When Buying a House in New Jersey?
New Jersey does not generally require every home buyer to retain an attorney for the entire home buying process. The state’s home buying guide notes that many buyers choose attorney representation, but it is not a requirement.
However, an attorney is the professional who can give you legal advice about the contract.
A real estate agent can explain the real estate process, discuss market conditions, coordinate with the parties involved, and help keep the transaction moving. Legal interpretation and legal advice should come from an attorney.
What Happens After Attorney Review?
Once attorney review is completed and the parties have agreed to the contract terms, the transaction moves into the next stages.
For most buyers, that means focusing on the home inspection, mortgage process, appraisal when required, title work, and other conditions contained in the contract.
The exact sequence can vary depending on the terms of your agreement, which is why keeping track of contractual deadlines is important.
When Should You Find a Real Estate Attorney?
Ideally, buyers should identify a New Jersey real estate attorney before making an offer or while actively searching for a home.
You do not want to begin looking for an attorney after valuable time in your review period has already passed.
Having an attorney’s contact information ready means the signed contract can be sent for review quickly once your offer is accepted.
Attorney Review for Monmouth County Home Buyers
Whether you are buying in Red Bank, Middletown, Freehold, Manalapan, Marlboro, Holmdel, Rumson, Asbury Park, Wall Township, or another Monmouth County community, attorney review is an important part of understanding the New Jersey buying process.
For buyers, the key is preparation.
Know which attorney you plan to contact. Understand when your contract was fully signed and delivered. Pay attention to communications from your attorney and real estate agent. Most importantly, ask questions when something in the contract or process is unclear.
Frequently Asked Questions About New Jersey Attorney Review
When does attorney review start in New Jersey?
For a contract prepared by a real estate licensee, the three business day attorney review period begins from the delivery of the completely signed contracts.
Is attorney review three calendar days?
No. The standard clause provides for three business days, not simply three calendar days.
Can my attorney make changes to the contract?
Yes. During attorney review, your attorney may propose revisions to the contract on your behalf.
Does my real estate agent handle attorney review?
Your real estate agent can help coordinate the transaction and communicate with the parties involved, but an agent cannot provide legal advice. Your attorney handles the legal review of the contract.
Buying a Home in Monmouth County?
Attorney review is only one part of buying a house in New Jersey, but knowing what to expect can make the process easier to navigate.
If you are considering buying a home in Monmouth County and have questions about the local real estate process, neighborhoods, current listings, or what to expect when making an offer, contact Nicole Rabbat Levine.
Phone: 732 216 4700
Email: realtornicolerabbat@gmail.com
Getting familiar with the process before you find the right house can help you approach your purchase with better information and fewer surprises.
This article is provided for general informational purposes and is not legal advice. Questions about your contract or legal rights should be discussed with a qualified New Jersey attorney.