For any of you relocating from outside of NJ, you might be surprised by some of the real estate laws in NJ. Specifically, in New Jersey, after a “proposal” is accepted by the buyer and seller, the property moves into Attorney Review status. During this period of time, both the buyer and the seller can exit the deal with no harm to either.
While in Attorney review, the attorneys representing the respective buyer and seller will ensure that all terms are clearly understood and acceptable to both parties. It will usually last for 3 days.
Unlike many other states where the “proposal” is actually a sales contract and when all signatures are received, the deal is a legal and enforceable contract, the attorney review period in New Jersey was created to ensure that both the buyer and sellers’ interests where represented prior to a legally enforceable contract being created.
If you put in an offer on a house in NJ, and during the attorney review period you decide against the house, you get out of the “proposal” without any issues. Likewise, if you are a seller and decide not to take an offer (maybe a better one comes in), you have the same opportunity.
Some may consider this a benefit, others may not. One thing is for sure, it offers more time and security to both the buyer and seller.
New Jersey is not a Title state (a state where a title company can execute the closing of a real estate contract), both the seller and the buyer will need to obtain attorneys to represent them during the deal. Attorney fees are typically around $1000 in New Jersey. They can be more depending on the amount of time and negotiation required by the attorney.