Legal Question in Real Estate Law in New Jersey

In a NJ real estate transaction when in attorney review if an addendum is added does it put the whole contract back into attorney review?


Asked on 10/30/13, 10:28 am

3 Answers from Attorneys

Keith Singer Keith A. Singer, Attorney At Law

NO

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Answered on 10/30/13, 10:41 am
John Corbett Corbett Law Firm LLC

The simple answer is "no" but it really depends on the nature of the amendment and what the resulting contract says. If the amendment is made without the assistance of a lawyer then the contract, as amended, is probably still a "broker prepared contract" which is what triggers the need for an attorney review clause. You should understand, however, that the attorney review clause is not a right of the parties but rather a device that realtors use, with the agreement of the Bar and the NJ courts, to avoid a claim that they are engaging in the unauthorized practice of law. A contract is a consensual document and the terms are what they are. So, if additional review time is needed or contemplated, the amendment should say that its execution restarts the attorney review clock. Otherwise, it probably does not.

On a related point, many NJ buyers believe that every NJ residential realty contract must contain an attorney review clause. That is not correct. The most that can be said is that broker-prepared contracts will almost always contain such a clause. If the contract is prepared by another person such as an attorney or the seller, the clause may be missing in which case, the contract is binding when signed and delivered.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 10/30/13, 11:16 am
Walter LeVine Walter D. LeVine, Esq.

I agree with John that it depends upon who did the amendment. Usually Attorney Review ends either with an agreement that the Contract has been approved by the attorneys for both sides or that the attorneys have approved any and all amendments. Amendements between the brokers or the principals still are subject to attorney review.

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Answered on 10/30/13, 2:20 pm


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