What is the attorney review period in New Jersey?
A New Jersey contract of sale prepared by a real estate licensee must contain an attorney review clause. The buyer and seller have three business days from delivery of the completely signed contract to consult an attorney.
- Attorney review period3 business days
- Contracts it coversPrepared by a real estate licensee
- A licensee prepares the contract, with the clause
- The three business days run from delivery of the signed contract
- Either side's attorney may propose revisions or disapprove
- Notice goes to the broker(s) and the other party within the period
- With no disapproval, the contract binds as written
The Real Estate Commission added the attorney review requirement to N.J.A.C. 11:5-6.2 in 1987, to carry out what the NJ Supreme Court mandated in New Jersey State Bar Ass'n v. New Jersey Ass'n of Realtor Boards (1983).
When does attorney review start in New Jersey?
The Appellate Division has held that the review period begins to run when a conforming contract is delivered to a party.
The Appellate Division has also held that once an attorney approves the contract, it is binding, even if the attorney then tries to disapprove before the deadline.
How does an attorney disapprove a contract during attorney review?
During those three days, an attorney for either side may propose revisions to the contract or render it null and void. Under the required clause, an attorney who disapproves must notify the broker(s) and the other party within the three-day period; otherwise the contract is legally binding as written.
| Source | Methods |
|---|---|
| The rule's clause text | Certified mail, telegram or personal delivery |
| The NJ Supreme Court | Fax, e-mail, personal delivery or overnight mail with proof of delivery |
- Window to disapprove3 business days
Notice by overnight mail is effective upon mailing, and the review period remains three business days.
The contract must list the names and full addresses of everyone a notice of disapproval must be sent to. The attorney may, but need not, tell the broker(s) what revisions would make the contract satisfactory.
Asked to add fax, email, and overnight courier to the rule's notice methods, the Real Estate Commission made no changes to N.J.A.C. 11:5-6.2 and said it anticipates proposing amendments in a future rulemaking.
What happens if no attorney disapproves the contract?
The contract is legally binding as written.
After a licensee-prepared contract emerges from attorney review and before closing, any advertisement of the property must include the term “under contract.”
What happens at a real estate closing in New Jersey?
Most New Jersey closings are face-to-face meetings of the buyer, seller, real estate agents, lawyers, title clerk, and the mortgage company's representative.
An attorney acting as a general closing agent is usually retained by the lender or others and does not represent the buyer in a dispute with the seller, lender, or others.
- Realty transfer feeCharged to the seller for recording the deed
- GIT/REP formRequired to record the deed, submitted at closing
- Deed and mortgageRecorded, usually by the title agent or buyer's attorney
A seller filing the GIT/REP-3 gives it to the settlement agent at closing, and the county clerk attaches it to the deed when recording it.
The closing costs guide sets out each line.