A typical real estate transaction begins with a buyer and a seller agreeing on the purchase price and items included in the sale. Most often the parties will have been brought together through the efforts of a real estate agent. In New Jersey real estate agents are allowed to prepare standard residential real estate contracts. However, both parties are allowed the opportunity to have the contract reviewed by an attorney who can terminate the contract or propose changes to the contract.
The buyer and seller have 3 days from the full signing of the contract to have an attorney review the contract. The attorney review is a critically important step in a real estate closing. A realtor prepared contract contains generally acceptable and standard language. However, each real estate closing is different and what may be acceptable in one transaction may not be acceptable in another. The role of a lawyer in a real estate transaction is to provide protection for his client and insure that clear title is transferred. Engaging the services of a lawyer early in the process improves the likelihood that the closing will take place without difficulty.
A real estate contract is an agreement between the buyer and seller. Before signing a contract, the parties will negotiate terms that satisfy everyone's needs. If successful, both parties will sign the contract, meaning that the seller has accepted the buyer's offer. If your real estate transaction does not include a real estate agent, it is in your best interests to have your attorney review the terms because, once you sign, the contract is binding. Taking advantage of the attorney review period is important for both buyers and sellers. While all real estate contracts in NJ must be written in "plain language," the fact remains that some confusing legal concepts will make their way into virtually every real estate transaction.
Working with an experienced real estate attorney can ensure you are getting the best advice on the ins and outs and specific legal language of real estate law. You do not want to find yourself bound to a contract that includes terms that you never fully understood. The attorney review period gives you time to work closely with your attorney so that you have a solid grasp on your rights and responsibilities as set forth in the contract.
When should you have an attorney review a real estate contract? In New Jersey, we have what is known as "attorney review." Attorney review is a court-approved agreement between attorneys and Realtors. In essence, the buyer and seller sign the contract and then it is reviewed by the attorneys.
The concept is to allow realtors to "strike while the iron is hot" and to allow the parties to sign the contracts first and then to have attorney review the contracts later. When it comes to NJ real estate transactions, first-time buyers or sellers can find themselves under-informed when it comes to their rights and responsibilities during the sale of a home. Real estate contracts are complex documents that may be difficult for many people to understand as well as they need to. In New Jersey, buyers and sellers have the right to a 3 day attorney review period to ensure that their best interests are being met.
A real estate transaction presents dozens of issues to deal with and keep track of during the process from contract to closing. A real estate lawyer who has conducted hundreds of real estate transactions has the expertise and experience to identify and deal with these issues so that your interests are protected. The legal fee to have an attorney represent you is relatively modest, and well worth it for all of the protections you will receive by having an experienced attorney represent you. When you ask real estate attorney Jeffrey S. Walters to represent you with your home purchase or sale, you will have the confidence of knowing that he is looking out for you from the very start.
He will be protecting your interests from the time you sign the Contract, through your home inspection, title report and finally, at the closing table. At closing, he will be sitting by your side, thoroughly reviewing and explaining all of your documents, and spotting issues which need to be corrected and addressed to protect your interests. A contract prepared by a realtor is called a realtor prepared contract. Only a realtor prepared contract is required to have a 3 day attorney review provision. This permits the buyer and seller to sign a contract and cancel within in 3 business days, by having an attorney send a "notice of disapproval".
A buyer and seller can concentrate on the basic terms of the contract, price, closing date, deposit amount, and mortgage amount and review the fine print with an attorney after the contract is signed. In New Jersey, the law does not require buyers and sellers to hire a real estate attorney to draft a real estate contract. A realtor can use a fill-in-the-blank contract form if the parties so choose.
Once the parties sign the realtor-prepared contract, and have it reviewed in a three-day attorney review process, it will be a valid, binding contract. Generally, it is the seller's responsibility to obtain a certificate of occupancy and to obtain and smoke detector certificate from the municipality. The title policy includes insurance protecting the buyer from defects and title liens.
No one should ever buy property without obtaining a title search and title insurance. In addition to a title search, a survey of the property is generally required by the mortgage company. A survey will disclose property line and boundary issues as well as easements and rights of way affecting the property.
The attorneys for both the buyer and seller review the title and survey in order to eliminate any issues that would adversely affect the property. First, it is important to note that before signing a legal document, such as a contract, it is important to have it reviewed with an attorney BEFORE signing. In the State of New Jersey, the realtor prepares the contract on a standard form. The buyers and sellers then participate in a three business day attorney review period.
The review period commences when an attorney for either party sends a letter stating that they disapprove of the terms contained in the proposed executed contract. Modifications to the contract may be made by either or both parties. The attorney review period is concluded upon all parties' agreement to the original contract and the modified terms of it. The contract may also be cancelled by either party during the attorney review period. Almost all real estate transactions begin with the signing of a real estate contract.
How Long Is Attorney Review In Nj This document is the most important document in the entire transaction. The contract sets forth the rights and obligations of the buyer and the seller. The contract sets forth what I call the essential terms of the contract, as well as the other terms. The essential terms are the identity of the buyer and seller, as well as the purchase price, closing date, the type of deed the seller must provide and what appliances and fixtures are included in the sale. The other terms include the rights of the buyer to perform inspections, the seller's obligation to make repairs, the quality of title the seller must provide, as well as the many other terms that define how the transaction must proceed.
Once the review begins, it continues until both parties come to an agreement and close the review. During this time period, emotions can be high as anticipation of a sale builds up. Your attorney can help you navigate your options without sacrificing your goals. Once both parties have signed a New Jersey real estate contract, there is a 3-day attorney review process.
During this time, your attorney checks to ensure that all contract terms are up to par. It is basically a grace period between the signing of the real estate contract, and it's being legally binding. This is a last-minute opportunity for attorneys on either side to find issues with the contract as-is. The state of New Jersey allows for a 3 day attorney review period to begin after a contract of sale has been signed by the buyer and seller and a copy has been delivered to both parties. This 3 day period allows both parties ample time to retain a real estate attorney who will review the contract.
The attorney will either accept/approve the contract as-is, make changes to it, or cancel it all together. Do you need assistance with the purchase or sale of residential real estate in New Jersey? Our experienced New Jersey real estate closing lawyers assist buyers and sellers with the purchase or sale of their coops, condos and single or multi-family homes.
Our real estate lawyers charge aflat fee of $850from contract to closing for all residential real estate transactions ; the fee includes the services listed below. It begins the first business day following the delivery of the fully signed contract to both the buyer and seller. If a letter disapproving or terminating the contract is not served on the other party and realtor by the close of the third day, then the contract in its original form becomes binding. A title search is usually ordered by your attorney after all inspections are resolved and you have received a mortgage commitment.
Your attorney will review the title search to determine the chain of title and the status of the property (i.e., liens, mortgages, easements, taxes, etc.). The title company that performs the search will also provide title insurance to you which is required by the lender. This insurance protects your interest and your lender's interest in the property.
In many cases, there are title issues that need to be resolved prior to closing. After delivering the contract of sale to the purchaser or their counsel, a three-day attorney review period commences. This is when the purchaser's lawyer can examine the contract in detail. During the review period, either party has the right to cancel the transaction or contract without incurring any penalties. Generally, only business days count in the three-day review period. If, for example, the seller signs the contract on a Friday, the review period will start on the next Monday.
Your real estate agent will most likely be using standard New Jersey Association of Realtors contract forms. These work well for most homes however every home and circumstance is unique. It's wise to have an attorney review the terms of the contract during the three day attorney review period once the contracts are fully signed.
During this time an attorney can cancel, or revise a contract on behalf of a home buyer or seller. It is important to know that in New Jersey, the attorney review period is your right as a buyer or a seller in a residential real estate transaction. If the contract does not include an attorney review clause, do not sign the contract until it has been reviewed by your attorney.
Whether you are buying or selling real estate in New Jersey, you want legal advice and assurance that your real estate transaction will go smoothly. At The Matus Group, our law firm of experienced attorneys is here to help you negotiate a contract on the property while protecting your rights every step of the way. S a real estate agent I often get asked from buyers or sellers should I hire an attorney? There is a difference in how closings are handled in North Jersey versus South Jersey. If you are in North Jersey it's customary for an attorney to handle everything in the transaction including title search and handling the closing. If you're in South Jersey title companies typically handle the closing and title work.
Regardless of what part of NJ you are buying or selling a home, here is my list of 5 reasons you should consider hiring an attorney. After the closing, the buyer's attorney forwards the mortgage pay off to the seller's mortgage lender and records the deed and mortgage. The buyer's attorney also forwards the necessary documents to the title company to obtain a title insurance policy and forwards the required documents to the lender. The buyer's attorney will also pay certain expenses such as taxes, real estate commissions, etc. from the closing proceeds as set forth on the closing statement.
After all of the above issues are worked through, , a closing date can be scheduled. A closing statement is with all of the figures is provided a within days of the closing. The buyer is advised about the amount of funds to bring to closing. Prior to closing your lender has to provide a Good Faith Estimate of the costs of the financing and other closing costs. Only an attorney can issue a Notice of Disapproval during the three day attorney review period. If the original Realtor form contract was fully executed by all parties, the review period started on the date of that Agreement.
If neither buyer nor seller retained an attorney who in turn issued a Notice of Disapproval within 3 business days of the date of that Agreement, that original contract is now fully legally binding as is. Whether you are buying or selling a home, in a real estate law dispute, or contemplating a real estate transaction, it is important to know your rights and have them explained to you by a real estate lawyer. The 3-day attorney review provision permits either party to terminate the transaction within 3 business days after the contract has been signed. The attorney review lets your attorney suggest changes to the contract that best suit your needs.
Within these three days, there may be an exchange of revisions or modifications between the buyer and seller until each party is satisfied with the transaction or one or both parties decides to walk away. It ends with the signing of a final addendum, making the contract binding. In the state of New Jersey, a real estate contract must include certain pieces of information. It is important that each party have an attorney review the contracts to make sure the legal rights of the party are protected and that the party understands the terms of the contract.
Realtors are not legally allowed to give legal advice to the parties and cannot represent the legal rights of the parties. The fact that the Realtor-prepared contract is a "standard" contract is misleading. There is no "standard" contract form in New Jersey and each Realtor may have their own form with terms that differ from other Realtors. So, what is the big deal about this three day attorney review period? The big deal is that you don't have a binding real estate contract until that time period is up.
Personally, my standard practice is to try to get the contract e-mailed to me as early as possible. I almost always have changes I want to make, simply because the most recent version of the Board of Realtors contract has many gaps and potential areas for misunderstandings. Those changes are set forth in an addendum to the contract that I create as I go through your contract line-byline. What I try to accomplish is to have that addendum and circulated prior to the end of the three day attorney review period. Yes, provided the contract was prepared by an attorney or layperson using an internet-found form, rather than a realtor. Although many attorney-drafted real estate contracts contain review clauses, they are not legally required to do so, so take care in what you sign.
You may also wish to contact an attorney before signing as a matter of due diligence should the property present challenging issues. Buyer shall be entitled to obtain all inspections within 14 days of completion of attorney review. If Buyer requests that Seller cure such conditions, Seller shall then have 7 days after the receipt of the reports and requests within which to notify Buyer, in writing, whether the Seller shall cure any of the conditions set forth.
