You find a home you love, sign the contract, and may feel that the hard part is over. In New Jersey, attorney review is a short period after signing for contracts prepared by real estate licensees, during which a lawyer for either side may review the contract and cancel it or propose modifications. Understanding how it works may help you protect your purchase.
The review period lasts three business days
New Jersey requires residential sale contracts prepared by real estate licensees to carry a notice that appears in larger print on the first page and states that the contract becomes final within three business days and that you may consult a lawyer during that time.
The count starts on the business day after you and the seller both receive the signed contract, and Saturdays, Sundays and legal holidays do not count.
Your attorney may review the contract and cancel it
During the review period, your lawyer may study the contract’s terms with you. Your attorney may disapprove the contract for any reason, which cancels it unless the parties negotiate mutually acceptable changes. The seller’s lawyer has the same right, so the seller may cancel as well.
Notice must reach the other side before the period ends
To cancel, your lawyer must notify the other side that you disapprove of the contract within the three business days. Under a 2017 New Jersey Supreme Court ruling, the notice may go by fax, email, hand delivery or overnight mail with a delivery receipt and it must be sent to the broker(s) and the other party.
Notice by overnight mail takes effect when it is mailed. These approved communication methods ensure that actual notice received within the review period legally satisfies the rule. If no attorney disapproves in time, the contract becomes legally binding as written.
Attorney review may help you avoid costly surprises
Having an attorney review your contract early in the period may help you act before the window closes. Every purchase is different, and the days after signing can shape the rest of the deal. A New Jersey real estate attorney can review your contract, propose changes to the seller if needed, explain your options, and help you decide whether to move forward before the window closes.
