Finding Your Home and Diving Into Attorney Review
You have received your pre-approval from your lender and understand your purchasing power. You have been searching for weeks for a home you can call your own. Hopefully, you have received the assistance of a qualified real estate professional to ease your search and have consulted with a real estate attorney to answer any questions you may have for purchasing a home. If you are a first-time homebuyer you will have a lot of questions, but that is a good thing. It is important that you be involved in the process. Learn and educate yourself. Do not go it alone and uninformed. Make the process a bit less stressful for yourself with a happier conclusion.
Now, you may lose out on homes due to competing offers. One offer after another. One home after another. Nonetheless, you are determined and finally find the home of your dreams and make your offer. Finally, your offer has been accepted.
What’s next? The standard form contract in New Jersey will provide the Buyer and the Seller a three-day attorney review period. The three-day period will begin from the date of delivery of the fully executed contract to both the Buyer and the Seller. Weekends and holidays do not count. During such time, it is strongly recommended that you reach out to your real estate attorney as soon as possible. This period of time allows you to review the contract of sale and make any necessary changes to the standard forward contract as discussed and consult with your real estate attorney. Changes can be made to deadlines (i.e. deposits, inspections, mortgage contingency), added protections for your inspections and mortgage contingency, and additional conditions, as well as other provisions that the parties may so agree. Further, the review period doesn’t just give you the opportunity to make changes to the standard form contract, it provides you the opportunity for a second thought. Maybe you jumped the gun and are having second thoughts. Maybe this property is not right for you and your family. If so, this time gives you the opportunity to terminate the transaction. Actual notice of the termination needs to be provided if this is the case so discuss with your attorney to act quickly.
Most importantly, the Contract will become binding on all parties by the end of the three-day attorney review window, unless the Attorney for either party disapproves the Contract. Consult with your real estate attorney at each stage of your transaction to be informed and have your interests protected.