A question we are often asked from potential clients is “how important is Attorney Review”? The answer is very. As stated in a previous post, the form realtor’s contract (most often the NJAR Contract), is full of items that are not normal in today’s market (i.e., liquidated damages, time of the essence provisions, Seller paying for ½ settlement fees, etc.); and thus (I submit) not very good for either party.
In order to avoid the aforementioned scenario, the offer/contract essentially needs to be disapproved in its current form and subject to a rider, or both buyer and seller (I submit) can be stuck with a bad contract. The way this is done is by getting the contract in the hands of an attorney and having he/she take such action within three (3) business days from the date the offer/contract was executed. Failure to do this can result in the parties (again) being stuck with a bad contract. Anyway, once the offer/contract has been disapproved the attorney review period can go on until the terms of the transaction have been mutually agreed upon by all parties and the rider(s) have been fully executed.
In making the determination as to whether or not one agrees with the provisions of the rider(s), the party should review the documents, and ask questions should the need to do so arise. After all each party should feel comfortable with the rider(s) before signing the same.
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