What is Attorney Review about? While I’m not an attorney, I’ll explain it from a real estate agent’s viewpoint. Only an attorney can fully explain the legalities on this.
Because so many home buyers and sellers don’t understand this at all, I thought an agent review would help you. Again, only an attorney can properly advise and explain this.
Buying A Home in New Jersey
Buying a home in New Jersey involves a sales contract. That’s not always the case elsewhere. Some parts of the US use a completely different process. Here we use a contract of sale and how it’s done depends on whether a real estate agent is involved.
New Jersey requires that for all real estate agents use the statewide NJ Realtors standard form contract. If there are no real estate agents involved, then the attorneys create the real estate contract.
What Is A Residential Property?
The New Jersey statewide contract is limited to residential property. Here is what makes up residential property:
- Single Family Home
- 1-4 Family House
- Vacant Land Zoned For Residences
Anything else is considered commercial property. Only attorneys can write sales contracts for commercial property. There is another category: co-op units. This is because co-ops are not real estate. You are buying shares of an association. Attorneys here too write the contract.
Real Estate Agents Are Not Attorneys
While agents must use the statewide contract, we are not attorneys. Sounds confusing doesn’t it? I’m not an attorney and yet I’m selling a house using a contract. This is where Attorney Review comes in.
Attorney Review allows the buyer and seller to send the contract they’ve just signed to their attorney. Attorneys cancel it next so they can adjust it.
Attorney Review Pluses & Minuses
Attorney Review is, in my view, the most important part of the contract. Why? Because this is how your attorney makes sure the contract is right for you. However it can be a double edged sword too.
While the attorneys are finalizing the changes they want, there is no sales contract on the house. This is because what I call “the mechanics of the Law”. You can’t change a signed contract. As a result, it must be canceled to incorporate changes. This is how another buyer can send in a stronger contract and knock you out. The bottom line is that buyers should do everything they can, in this market, to expedite Attorney Review. Additionally it means that the door is not closed to a better offer for homeowners.
I hope this helps you to understand Attorney Review. Be sure to go over this with your attorney because I’m only giving you a real estate agent’s take on this. Do you need a good real estate attorney? I know several. Contact me if you do.