Buying or selling a home in New Jersey involves several important steps—and one of the most critical is the attorney review period. Unique to New Jersey (and a few other states), this three-business-day window allows buyers and sellers to have their contracts reviewed, negotiated, and approved by their respective attorneys.
Attorneys play a crucial role during the attorney review period by identifying legal issues, clarifying contract terms, and ensuring legal compliance to protect their clients’ interests.
Understanding how attorney review works—and how long it really takes—can help you avoid unnecessary delays and protect your interests. The key steps in the attorney review process include contract review, negotiation of terms, and final approval before the transaction moves forward.
What Is the Attorney Review Period?
The attorney review period begins once both the buyer and seller have signed a contract of sale, typically prepared by a realtor. From that moment, both parties have three business days (excluding weekends and legal holidays) to have their attorneys review the contract. The parties attorneys are responsible for negotiating and finalizing any changes during this review process.
During this period, the attorneys may:
- Review the terms and conditions of the sale
- Identify and correct errors or unfavorable clauses
- Propose changes to protect their client’s interests
- Approve or disapprove the contract
- If an attorney disapproves the contract, they must notify the other party in writing, which can halt or terminate the agreement
If either party’s attorney sends an attorney review letter or proposed revisions, the three-day period pauses until both sides agree on changes. Once all terms are settled, the contract becomes legally binding.
Why the Attorney Review Process Matters
The attorney review period isn’t just a formality—it’s a vital legal safeguard for both buyers and sellers. Contract review by attorneys ensures the agreement complies with all relevant laws. It ensures:
- The contract accurately reflects the agreed-upon terms
- Contingencies and timelines are reasonable
- Legal rights and financial interests are protected
- The buyer’s protections and rights are upheld during the attorney review process, including the ability to negotiate, add contingencies, or cancel based on legal findings
Without contract review by an attorney, parties risk entering into unfair or unclear agreements that could lead to disputes later. Contract review also helps ensure all terms are lawful and enforceable.
How Long Does Attorney Review Take in Practice?
While the law allows for three business days, attorney review can last a few days to over a week depending on several factors:
- Negotiations: If attorneys propose multiple revisions, discussions can extend the timeline.
- Responsiveness: Delays often occur if one party’s attorney or real estate agent is slow to respond.
- Complexity of the deal: Transactions involving contingencies, multi-family properties, or legal issues (like liens or title defects) take longer to finalize.
- Significant issues: If significant issues are identified during the review, such as substantial concerns with the contract or property, the timeline may be extended to allow for renegotiation, further investigation, or even cancellation.
- Mutual agreement: Both parties can agree in writing to extend the review period if needed.
In most standard residential transactions, attorney review concludes within three to seven business days, and prompt resolution of any issues helps ensure a smoother transaction.
Roles of the Attorneys During Review
Buyer’s Attorney:
- As the buyer’s lawyer, their primary responsibility is to protect their client by ensuring the contract provides enough time for inspections, mortgage approval, and due diligence
- Reviews property disclosures and title issues to safeguard the client’s interests
- Negotiates contingencies and protections for the client throughout the transaction
Seller’s Attorney:
- The seller’s attorneys ensure the contract terms accurately reflect their respective clients’ interests, including the seller’s intent and agreed price
- Verifies that property descriptions, financial terms, and closing obligations are correct for their client
- Coordinates with the title company to prepare for closing on behalf of their client
Both parties’ lawyers must agree on any proposed changes before the review ends.
The Attorney Review Clause
Every standard New Jersey real estate contract is a form contract, a standardized legal document used to streamline the transaction process. Every form contract includes an attorney review clause, which allows either party to cancel the contract for any reason within the three-day review period. The attorney review period begins once the seller signs the contract, marking a crucial step in verifying and potentially modifying the real estate agreement.
This clause provides flexibility and protection, giving both sides the opportunity to walk away without penalty if they are not comfortable with the contract terms.
Property Boundaries and Disputes
Property boundaries disputes are a significant concern during the attorney review process in New Jersey real estate transactions. The attorney review period is a critical stage where attorneys carefully review the real estate contract and supporting documents to identify potential issues, including any questions about property boundaries. Under New Jersey real estate law, property boundaries are typically defined by the property’s deed, survey, and other relevant records. However, outdated property descriptions, inaccurate surveys, or encroachments by neighboring properties can create confusion and potentially lead to disputes.
During the attorney review phase, attorneys play a pivotal role in protecting both the buyer and seller by thoroughly examining the property’s deed, survey, and any other documentation that outlines the property boundaries. If a property boundaries dispute is discovered, attorneys representing both parties will engage in extensive negotiations to resolve the issue. This may involve ordering a new survey, clarifying the legal description, or, in some cases, pursuing court action if the dispute cannot be settled amicably.
The attorney review clause in the real estate contract ensures that any disputes over property boundaries must be addressed before the contract becomes legally binding. If the parties cannot reach an agreement, the contract may be terminated, and the buyer’s earnest money deposit could be returned. This safeguard is essential for both buyers and sellers, as unresolved property boundaries disputes can significantly impact the value and use of the property.
The steps involved in resolving property boundaries disputes during the attorney review process typically include:
Having a good attorney who is well-versed in New Jersey real estate laws can significantly influence the outcome of these negotiations and help ensure a smooth transaction. By identifying and addressing property boundaries disputes early in the review period, attorneys help both parties avoid costly and time-consuming problems later in the real estate transaction process.
In summary, property boundaries and disputes are a crucial aspect of the attorney review process in New Jersey. Attorneys play a vital role in identifying and resolving these issues, ensuring that the contract is legally sound and that both buyers and sellers can proceed with confidence. Working with an experienced real estate attorney is the best way to navigate these complex matters and achieve a successful, smooth transaction.
What Happens After Attorney Review Ends?
Once the attorney review period is completed and both sides approve the contract, resulting in a signed contract, the transaction moves into the next stages:
- Negotiating and confirming closing dates to ensure the timeline aligns with both parties’ needs and legal protections. Attorneys may review and adjust closing dates to prevent future disputes and reflect the agreed-upon settlement schedule.
- Home inspection and appraisals, which are crucial for uncovering any property issues, making repair requests, and negotiating contingencies as part of the due diligence process.
- Title search and insurance
- Mortgage approval
- Final walkthrough and closing preparations
At this stage, the signed contract becomes binding, and the buyer typically submits a deposit.
Common Issues That Can Delay Attorney Review
- Unclear or incomplete contract’s terms, which can cause delays if provisions need to be clarified or negotiated
- Missing disclosures or inspection clauses
- Disagreements over contingencies (such as inspection or financing)
- Title or ownership questions
- Delays in communication among parties
- Waiting for responses or agreement from the other party can also slow down the process
Working with an experienced attorney helps identify and resolve these issues early, including resolving disputes, to keep the transaction on track and prevent delays later in the process.
How to Keep Attorney Review on Track
- Hire your attorney early. Don’t wait until after signing a contract—choosing the right attorney for your real estate dealings ensures review starts immediately and your interests are protected.
- Respond promptly. Quick communication with your agent and attorney prevents bottlenecks.
- Provide full documentation. Have disclosures, mortgage pre-approvals, and property details ready.
- Stay flexible. Allow time for negotiation while keeping your desired closing date in mind, and consider the needs of all parties involved.
Why Work With Kristen E. Johnson, Esq.
With over 20 years of experience in New Jersey real estate law, Kristen E. Johnson, Esq. has guided countless clients through the real estate attorney review process in Monmouth and Ocean County. Her extensive experience with real estate attorney review makes a significant difference in the outcome of your transaction, ensuring your interests are protected at every stage. Her practice focuses on protecting buyers and sellers in:
- Residential and commercial transactions
- Title and deed issues
- Foreclosures and short sales
- Construction and environmental concerns
- Contract review as a key part of every transaction
Kristen provides clear, practical legal guidance to ensure every contract is fair, compliant, and enforceable—helping you move confidently toward closing.
In New Jersey, the attorney review process typically lasts three business days but can take longer depending on negotiations and contract complexity. This step is critical to ensuring your transaction is legally sound and your interests are protected.
