You've been working with a great REALTOR, find that dream home and decide to make an offer in writing. Maybe you negotiate back and forth for a bit happily arriving at what we refer to as "terms agreed". In simpler language this means that the Buyer and Seller have arrived at a mutually acceptable offer, to include purchase price and terms. Buyer and Seller are required to sign off on the contract along with their respective realtors.
In my real estate area of New Jersey which includes Summit, Millburn, Morristown, Chatham, Madison and Harding, Sellers and Buyers almost always have an attorney representing them on their real estate transaction. This attorney should be a "New Jersey Real Estate" attorney because state laws differ.
Attorney Review Begins
After all signatures are obtained on the contract, the signed contract is either faxed or delivered to the Buyer and Seller attorneys. These should be two different attorneys to avoid a conflict of interest. Attorney review begins when both attorneys have a copy of the signed contract. Here's the thing...During attorney review, Buyer can find another house and Seller can find another Buyer. Either party is free to walk away for any reason or no reason at all. Attorney review typically lasts 3 days, but can be shorter (fear of losing the home) or the buyer and the seller may agree in writing to extend the three-day period for attorney review.
During Attorney Review
During attorney review, the attorneys study and review the details of the contract to be sure their client is protected and may make some changes during this time. Showings on the property may continue while it's in attorney review, although it should be marked as such in the Garden State MLS. This contract becomes legally binding at the end of attorney review unless the attorney for the Buyer or Seller disapproves of the contract.
In my real estate area of New Jersey which includes Summit, Millburn, Morristown, Chatham, Madison and Harding, Sellers and Buyers almost always have an attorney representing them on their real estate transaction. This attorney should be a "New Jersey Real Estate" attorney because state laws differ.
Attorney Review Begins
After all signatures are obtained on the contract, the signed contract is either faxed or delivered to the Buyer and Seller attorneys. These should be two different attorneys to avoid a conflict of interest. Attorney review begins when both attorneys have a copy of the signed contract. Here's the thing...During attorney review, Buyer can find another house and Seller can find another Buyer. Either party is free to walk away for any reason or no reason at all. Attorney review typically lasts 3 days, but can be shorter (fear of losing the home) or the buyer and the seller may agree in writing to extend the three-day period for attorney review.
During Attorney Review
During attorney review, the attorneys study and review the details of the contract to be sure their client is protected and may make some changes during this time. Showings on the property may continue while it's in attorney review, although it should be marked as such in the Garden State MLS. This contract becomes legally binding at the end of attorney review unless the attorney for the Buyer or Seller disapproves of the contract.
