Congratulations! You're going to buy (or sell) a home!

You've successfully negotiated the purchase or sale of a home in New Jersey and now you're "starting attorney review". And you ask yourself "What is attorney review and how long does it last?"

In New Jersey, unlike in many other states, signing a purchase agreement does not immediately create a binding contract. Instead, the agreement includes language indicating that it will become final within three business days, during which time either party can consult with an attorney to review or cancel the contract. At the very top of the first page of any purchase agreement completed by your real estate agent or broker in NJ it says: "This is a legally binding contract that will become final within three business days. During this period it is recommended you consult an attorney who can review and/or cancel the contract.
So, what exactly happens during the first 3 business days of attorney review? Well, a few things:

During this period of 3 business days, your attorney can cancel the contract for any or no reason whatsoever. But the contract can only be canceled by your attorney on your behalf. During this same period, the other party can also have the contract canceled, for any or no reason. Typically during this period, however, the parties' attorneys add language, clarify issues, and legally better represent their clients' needs. Please note this is not where the terms of your accepted offer such as offer price and waiving contingencies are renegotiated.

Another common question is: When does attorney review end?

Attorney review ends when the attorneys for buyer(s) and seller(s) have completed their revisions and approved each other's revisions. That could be in 2 days or 2 or 3 weeks or sometimes even longer. During this time both buyer(s) and seller(s) are at risk of losing the sale. Sometimes a buyer can lose a home because another offer was submitted to the seller during attorney review that had more favorable terms for the seller. The seller can cancel the first contract and enter into attorney review with the second buyer during attorney review. Conversely, a buyer who sees another home they like better can also cancel the contract that is in attorney review to pursue a purchase on another home.

So how can you avoid losing your sale (or purchase) and conclude attorney review more quickly, you ask?

1.) Choose a local and seasoned real estate attorney that can expedite the process. An attorney who is not available to review your contract and respond to the other party's attorney on a timely basis can cost you your sale (or purchase). Be sure to ask your real estate agent for lawyer recommendations.

2.) Clear communications and prompt responses by all parties are key to a good transaction. Communicate clearly with your attorney and be sure to express not only your needs but also your desire to conclude attorney review in a timely basis to have a binding contract.

What happens after attorney review has concluded?

After attorney review has concluded and you are officially “under contract” promptly move forward with starting your financing application and scheduling the inspection with the assistance of your realtor. Again your realtor will be able to provide a list of recommended inspectors and confirm the appointment with the seller or occupants of the home. Your agent can assist in making the closing process run more smoothly but keep in mind, your attorney works for you and not your agent, so your agent's effectiveness with your attorney can sometimes be limited. Keep your agent in the loop to ensure that the process goes smoothly and you'll be at the closing table before you know it.