Whether you are a home buyer or a home seller, these are certainly exciting times in the New Jersey real estate market. Historically low interest rates are making home purchases a reality for thousands of prudent buyers, and current market conditions — low inventory and high demand — are providing sellers with tremendous opportunities.
Still, if you are selling a home, you know the process can be stressful. You probably know that your role in the transaction is not simply to sit back and sign whatever contract comes your way from the real estate agent. Once the contract is signed and the attorney review process begins, it is critical to have an experienced attorney at the real estate law firm of Mariano & Coiro review the contract to make sure the terms are reasonable, legally sound and suited to your interests.
Our firm has facilitated more than 20,000 real estate closings throughout New Jersey over the past 36 years. We understand that, as a seller, you probably have a lot of questions about the process and how to make the most of your home sale. Following are some essential questions to consider:
When I’m presented with a purchase/sale contract, how long do I have to get my attorney to review it?
Generally, in New Jersey, there is a three-day review period (only business days count) for real estate purchase/sale agreements that are presented by a licensed realtor. During this review period, your attorney can review the contract and let you know if there are any issues that are not in your interest or otherwise raise red flags. If your home sale does not involve a realtor, you should never sign a contract without first having your attorney review it.
Unfortunately, home sellers who fail to get legal input on a purchase/sale contract could be setting themselves up for major liabilities and losses. It is always best to seek peace of mind in these matters, and the best way to do that is to have an experienced real estate attorney at Mariano & Coiro review the contract before the attorney review period ends.
What if I receive a better offer during the three-day review period?
It is important to understand that, during the three-day review period, you can continue showing your home to potential buyers. However, this can be done only to secure backup offers. During the review period, if you receive a better offer, you should let your attorney know immediately. Your attorney must terminate the previous contract before you can sign another contract with a different buyer.
When exactly does the three-day review period start?
The three-day review period starts when the sale contract has been executed by all buyers and sellers and delivered to you, and the three-day period only includes business days. In other words, for a contract that is delivered on Friday evening, the three-day period for your attorney to review the contract will begin on Monday (assuming Monday is not a legal holiday).
What if my attorney or the other party’s attorney suggests a modification of the contract?
Either the buyer’s attorney or the seller’s attorney may submit a letter suggesting a modification of the purchase/sale contract or proposing additional terms. The review period is then extended until revisions of the contract are satisfactory to both parties. Also, either party may cancel the contract without any penalty as long as the contract is canceled during the attorney review period.
Seller action on these matters makes sense in any market
Many considerations loom large for sellers, even in a very seller-friendly market. If you have any questions about home inspections, a certificate of occupancy, paying off your existing mortgage, what to bring to your closing, or closing costs and processes, the real estate legal team at Mariano & Coiro is ready to help.
Our law firm has been helping valued and diverse clients achieve great outcomes in real estate transactions for decades. We welcome the opportunity to provide a FREE & CONFIDENTIAL consultation. We can be reached by phone at 800-800-9933 or through the firm’s contact page.