This past July, I became a first-time homebuyer! As exciting as the process may seem, it was also extremely terrifying, even for an attorney. With all of the anxieties surrounding the purchase, one of my first questions, as is for most first-time purchasers, was: Do I need to hire an attorney? If you live in New Jersey, the answer is yes.

There is a mandatory attorney contract review period in New Jersey, which is actually very helpful. This review period is required by the state courts to eliminate unauthorized legal advice from realtors who are not licensed to practice law. While realtors can prepare the contracts, an attorney is required to review before it can be considered binding. The attorney review period is three (3) business days from the date the contract is signed. Sometimes, the review period gets expedited if the closing date is less than 3 days. This review period allows for review of the terms of the Standard Form New Jersey Realtors Association contract and the opportunity to negotiate terms that are not applicable or unfavorable, and other terms with the sellers (e.g., whether furniture is included in the sale). Attorneys can help buyers understand and identify language that might not be beneficial and explain any obstacles to look out for in the future. After this review period ends, the parties are officially “under contract.”

Throughout the transaction, the attorney works with the buyer’s realtor and the seller’s attorney to ensure that the terms of the contract are carried out as agreed. The attorney will also draft necessary documents needed to effectuate the transfer of the property and record the deed of sale with the county. Sellers’ attorneys will perform many of these same tasks and will also draft the deed to transfer the property to the buyer.

If you live outside of NJ in the DMV area (DC, Maryland, Virginia), attorneys are not mandatory in residential real estate transactions, but they can be very helpful for all of the same reasons. Usually, attorneys in the DMV area will be asked to come in to draft language for any extraneous terms, when there is a dispute with the contract of sale, or if any issues arise with the property after closing. For example, a defect in the property that was not disclosed prior to closing, or a seller who tries to cancel the contract prior to closing for an unauthorized purpose. For most of the tasks a NJ attorney would normally perform, a title company typically handles in the DMV. However, it is advisable to reach out to an attorney prior to signing the contract to ensure full understanding of the terms since they are standard forms and they usually (almost always) contain a heap of legal language that makes them difficult to understand.

While cutting down on costs might be a primary goal when purchasing or selling a property, skipping the attorney when a contested issue arises might end up costing more in the long run. If you need advice on your real estate sale or purchase, whether commercial or residential, contact the attorneys at RKW Law Group.