What Attorney Review Means in a New Jersey Home Sale

You found the house. You made an offer. The seller said yes, and everyone signed. In most states, that would be the moment the deal is locked in. In New Jersey, there is one more step first, and it surprises a lot of people: attorney review.

I walk every client through it before we ever write an offer, because knowing how it works takes a lot of stress out of the first few days.

What attorney review is

When a real estate agent prepares the sales contract for a home in New Jersey, the contract has to include an attorney review clause. That rule comes from the New Jersey Real Estate Commission's regulations.

Here is how the clause works:

• Each side's attorney has three business days to respond to the signed contract. Saturdays, Sundays and legal holidays do not count.
• The clock starts when the fully signed contract is delivered to both the buyer and the seller.
• Within those three days, an attorney can approve the contract, disapprove it, or disapprove it and propose changes.
• If no attorney responds in time, the contract becomes legally binding as written.
• If an attorney does send a disapproval with proposed changes, attorney review stays open while the two attorneys negotiate. That part has no fixed length. It can wrap up in a few days or take a few weeks, depending on what needs to be worked out.

So the three days are the deadline for the first response, not the length of the whole review. The signed contract is real, but it is not final until the attorneys finish. Attorney review is the pause the law builds in so both sides can get legal advice before they are committed.

What an attorney can do during review

An attorney has a few options when responding within those three business days:

1. Let it pass. If the contract looks right, the attorney can simply let the period end, and the contract becomes binding as written.
2. Disapprove it. The attorney does not have to give a reason. A disapproval ends that version of the contract.
3. Disapprove and propose changes. This is the most common path. The attorney sends a disapproval along with a list of changes, and the two attorneys negotiate from there.

That third option is where most of the real work happens, and it is why attorney review often runs well past three days. Attorneys often clarify things like inspection terms, the mortgage contingency, the closing date and who is responsible for what. Once both sides agree and the attorneys confirm that review is complete, the revised terms become the deal.

Disapproval sounds dramatic, but it is usually just how the negotiation starts. In my experience, it rarely means the deal is dead.

How the notice has to be sent

The first response, such as a disapproval with proposed changes, has to reach the agents and the other party within the three business days. In 2017, the New Jersey Supreme Court held in Conley v. Guerrero that notice can go by fax, email, personal delivery or overnight mail with proof of delivery. Timing matters, so this is one more reason to have your attorney lined up before you sign.

What it means for buyers

For buyers, attorney review is a chance to make sure the contract protects you. A few things I tell my buyers:

• Pick your attorney before you make an offer. The three-day response window goes fast, especially around a holiday.
• Keep your phone close. Your attorney may need quick answers from you.
• Do not treat it as a free pass. Once attorney review is complete, you are bound by the contract and its contingencies. Make sure you are comfortable with the terms before it closes.

If you are just getting started, my page on buying a home explains the full process.

What it means for sellers

Sellers sometimes feel uneasy during review, because the house is "sold" but not really. That is normal. A few things help:

• Have your attorney ready when you list, not when you get an offer.
• Expect some back and forth. Changes to dates, inspection language or other terms are common.
• Know that buyers can walk away during review. So can you. Until attorney review is complete, the deal is not final for either side.

One more thing to know

The attorney review clause is required in contracts prepared by real estate licensees. If an attorney drafts the contract instead, different rules can apply. Your attorney can tell you which situation you are in.

This post is general information, not legal advice. Please confirm the details of your own contract with your attorney.

How I handle it

We put every agreement, timeline and responsibility in writing with our clients. When we go under contract, we stay in touch with both attorneys, keep you posted on where review stands, and tell you the moment it is complete. You will always know what happens next. No guessing.

If you are thinking about buying or selling in Union or Essex County and want to talk through how attorney review would work for you, contact me. No pressure, just answers.

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