Condominium/Real Estate Law Blog
What is the NJ Three Day Attorney Review?
Posted by Jeff Barnes on February 08, 2012
Once a contract of sale of a 1-4 family residential property is prepared by a licensed real estate broker and has been signed by both the buyer and seller, either party or both parties may elect to retain an attorney to review the contract. During the three day attorney review period, if either the buyer or seller decides to cancel the contract, the other party has no recourse. The three day review period can be extended by mutual consent of the parties as a result of negotiations between the parties. If the contract is canceled during the review period, the buyer shall be entitled to the return of his/her deposit. It is important to understand that the start of the three day attorney review period does not include weekends and holidays, and does not count the day the contract is received and signed by the signatories. For example, if the contract is received on a Wednesday and Friday of the same week is a holiday, the three day attorney review period ends at the close of business on Tuesday of the following week. If none of the parties elect to cancel the contract during the attorney review period the contract will become binding. On the other hand, if either one of the parties elects to cancel the contract during the three day attorney review period, such cancellation or notice of disapproval must be sent by an attorney to the other party. Often times a notice of disapproval is sent to request modifications to the contract which if acceptable will most likely result in the parties signing an amendment or letter agreement to memorialize the agreement and concluded the attorney review.
If you would like to discuss your specific situation, contact me.
blog comments powered by Disqus