The attorney review period of a contract for the sale of residential real estate begins after the buyer and seller sign a Real Estate contract completed by a Realtor or a Real Estate agent. During this review period the buyer and seller can ask through their New Jersey Real Estate attorneys to make changes to the contract. Also, during this period buyer or seller may cancel the contract for any reason or even for no reason at all.
For example, sellers who are selling their property in Vernon may want to keep their property on the market until the review period is concluded out of concern that the buyers will back out. Buyers who are serious about buying their dream home in Franklin, on the other hand, are concerned during this period that sellers may get a better offer at any time.
If neither buyer nor seller ask for any changes to the contract within 3 business days after the contract is signed, then the review period is automatically concluded and the contract signed by them is binding. When the contract is binding, the seller must remove the property from the market and the buyer must schedule an inspection and apply for a mortgage. The 3 business days do not include weekends and holidays and the first day starts to run the day after the seller signs the contract.
When a Real Estate lawyer in New Jersey sends a letter disapproving the contract and asking for changes to be made to the agreement, then the attorney review period is automatically extended until the parties come to an agreement as to the requested changes. The most common mistake that buyers and sellers make is believing that the review period must begin and conclude within the three day period after a signed contract is delivered to the buyers. This is inaccurate because the review period must only begin during the first three days after a contract is signed by the seller, but the review period does not end until the changes requested to be made to the contract by either party are accepted.
Regardless of whatever changes the buyer or seller ask of each other to make to the contract, the following contingencies are the most widely accepted in real estate transactions: inspection; mortgage; and title and survey. These will be explained in future articles.