Residential Real Estate · Commercial Real Estate · Real Estate FAQs
What is the Attorney Review period?
In New Jersey, residential real estate contracts prepared by licensed real estate agents must contain a clause that creates what is known as the attorney review period. Given the fast-paced nature of real estate contract execution, the parties rarely have time to consult an attorney as to the advisability of certain terms in their contract. The attorney review period gives both parties three business days (weekends and legal holidays do not count) after everyone has received a fully-executed contract to have an attorney review and disapprove of the terms of the contract before it becomes final.
During the attorney review period, either party may terminate the contract for any reason or no reason at all. This does not mean, however, that the contract is not binding during the three-day period. The contract is, indeed, binding, unless a New Jersey licensed attorney disapproves of the contract within the three day period referenced above.
One of the more important things buyers and sellers should know is that the attorney review period does not have to be three days long. In fact, attorney review can be completed on the same day that the contract is executed and delivered to the parties if the attorneys are able to reach an agreement. If the attorneys reach an agreement, the contract becomes final and the parties may no longer terminate the deal under the attorney review clause even though three days have not yet passed. It is equally important for the parties to realize that once an attorney “disapproves” of the contract, negotiations for the terms of the contract may extend until the attorneys reach a new agreement regarding the terms of the contract—this may take longer than three days.
At Costanzo & Russom Law Group, our experienced residential real estate lawyers take pride in helping our clients navigate the attorney review process as quickly and painlessly as possible. Contact us today to speak with a Toms River lawyer, and let us help you get into that dream home.
NOTE: This page is for general information only and is not to be relied upon. You should consult a Toms River attorney so that we can help you successfully close your real estate transaction.