The NJ attorney review period is a unique three-business-day window — and it's the most consequential phase of a residential real-estate transaction.

The NJ attorney review period is a unique feature of NJ residential real-estate practice grounded in the 1983 NJ Supreme Court decision in New Jersey State Bar Association v. New Jersey Association of Realtor Boardssource. The Court approved broker preparation of residential purchase agreements where the form includes a meaningful attorney review period allowing parties to obtain legal advice. Mechanics: (1) Triggering event. The attorney review period begins when the contract is fully executed by both buyer and seller, typically when the broker delivers the signed contract. (2) Three business days. The period runs three business days, excluding weekends and legal holidays, from the date of full execution. (3) Attorney action. During the period, either party's attorney may approve, request modifications, or disapprove the contract. (4) Attorney inaction. If neither attorney takes action within three business days, the contract becomes binding without modification. (5) Modifications. Where modifications are requested, the parties negotiate through their attorneys.

Attorney review is meaningful only if you actually use it. Three business days runs quickly; calendaring matters. Contact counsel immediately after signing, or before signing if possible, so there is time for substantive review. The standard NJ residential real-estate contract has multiple provisions warranting attention: purchase price and earnest money; mortgage contingency; inspection contingency; title contingency; closing date; included and excluded property; municipal certificates; seller representations; default and remedies provisions; and risk-of-loss allocation. Attorney review is when party-specific protections get added.

Disapproval terminates the contract and is one of the strongest contract-termination rights in NJ residential practice. Mechanics: (1) No reason required. The disapproving attorney need not state a reason. The contract simply terminates. (2) Effect on earnest money. The earnest money escrow is released to the buyer in full. The seller has no claim against the earnest money. The escrow agent (typically the broker) must release the funds; refusal to release exposes the broker to liability. (3) No cure right. The other party has no right to 'fix' the problem and revive the contract. If the parties want to renegotiate after a disapproval, they enter a new contract — which restarts attorney review on the new contract. (4) When to use disapproval vs. modification. (a) Disapproval is appropriate where the deal is fundamentally wrong — wrong price, wrong terms, wrong property as it turns out, undisclosed major issues discovered during review, change of heart, financing fundamentals didn't work out, family situation changed. (b) Modification is appropriate where the parties want the deal but need specific changes — inspection period adjustments, mortgage contingency tweaks, repair allocations. (5) Strategic considerations. Disapproval ends discussions definitively; modification requests keep discussions open. Where the buyer is committed to the deal but needs better terms, modification is appropriate. Where the buyer wants out, disapproval is cleaner. (6) Limitations. The disapproval right exists only during the three-business-day period. After the period expires without disapproval (or with attorney approval), termination requires showing breach by the other party or invocation of specific contract contingencies (inspection, financing, title).

Attorney review applicability is determined by who prepared the contract, not only by property type: (1) Broker-prepared residential contracts normally include attorney review. (2) Attorney-prepared contracts are drafted by counsel from the outset, so there is usually no separate review period. (3) FSBO without broker: no attorney review by default unless the parties negotiate it. (4) New construction by builders: builders typically use their own forms and often do not include attorney review. Buyers should contact counsel before signing when possible, or immediately after signing if the form is already executed. (5) Commercial transactions: no attorney review by default; parties typically have attorney representation throughout negotiation. (6) Foreclosure, sheriff sale, auction, and short-sale transactions have deal-specific frameworks. Where attorney review does not apply by default, buyers and sellers should contact counsel promptly so the contract can be reviewed before it becomes binding whenever possible.

Broker obligations during attorney review: (1) Notice obligation. The broker must provide written notice that attorney review has begun and identify the deadline. (2) No interference. The broker cannot discourage parties from consulting attorneys, claim attorneys are unnecessary, or pressure parties to skip review. (3) Cannot waive on parties' behalf. The broker has no authority to waive the parties' attorney review rights. (4) Document delivery. The broker must promptly deliver any modification requests, approval/disapproval notices, and counter-proposals between the parties' attorneys. Common broker violations: (a) Failing to mention attorney review at signing. (b) Telling buyers 'attorneys just slow things down — let's skip review.' (c) Counting the three business days incorrectly (e.g., including weekends or holidays). (d) Pressuring parties to approve quickly. (e) Failing to communicate attorney modification requests promptly. Remedies for broker misconduct: (1) NJ Real Estate Commission complaint. The Commission has authority to discipline brokers including license suspension and revocation. (2) Civil liability. Brokers who violate attorney review obligations face civil liability for damages caused. (3) Contract relief. Where broker misconduct prevented meaningful attorney review, courts may grant relief — though this is fact-specific and not routinely available. Practical advice: engage an attorney before signing any broker-prepared contract. The attorney can coordinate with the broker on review timing and ensure the period is properly observed.

Post-attorney-review transaction sequence: (1) Inspection period. Typically 10-14 days from contract execution. Buyer arranges general home inspection plus any specialty inspections (radon, wood-destroying insects, septic, oil tank, structural, environmental). Inspection results are negotiated under the contract's inspection contingency — typically allowing the buyer to request repairs, request credits, or terminate the contract. (2) Title work. Begins shortly after contract execution. Title search identifies liens, judgments, easements, title defects, and required clearances. Title commitment issued; buyer's attorney reviews. Issues are resolved before closing. (3) Mortgage application. Buyer applies for mortgage; appraisal ordered. Mortgage commitment typically due 30-45 days post-contract. Mortgage contingency may permit termination if commitment isn't obtained. (4) Municipal compliance. Certificate of Occupancy (where required); smoke detector / carbon monoxide certification; lead paint disclosure for pre-1978 homes; specific local requirements (continuing-certificate-of-occupancy inspections in some municipalities). (5) Closing preparation. Title clear; mortgage commitment in hand; municipal certificates obtained; closing scheduled. Closing typically 45-60 days post-contract. (6) Closing. Final walk-through; closing disclosure review; signing; funding; deed recording; possession transfer. (7) Post-closing. Title recording; mortgage recording; surveying issues if any; possession transition; municipal updates. Attorney representation continues throughout these phases — handling negotiations, document preparation, title issues, and the closing itself. The attorney-review-only engagement is unusual; most parties engage their attorney for the full transaction.