Signed a contract on a home in Parsippany and heard about “attorney review”? You are not fully locked in yet, and that is a good thing. In New Jersey, you get a short window to have an attorney review and negotiate your contract. In this guide, you will learn how the three business day period works, what to do during it, and Parsippany specifics to keep your deal on track. Prefer Spanish? Hablamos español. Let’s dive in.
What attorney review means in New Jersey
Attorney review is a standard New Jersey practice when you use the common residential REALTOR forms. After you and the seller sign, there is a short period when either side’s attorney can approve, reject, or propose changes to the contract.
If no attorney objects within the allowed time, your contract becomes fully binding as written. If an attorney sends a written disapproval or a marked-up version within the window, the deal can be voided or renegotiated without you being in breach.
The purpose is simple. You get a protected chance to ask for changes, confirm key terms, and address issues before you are fully committed.
How the three business days work
When the clock starts
The three business day period usually starts on the date the last party signs the contract. Electronic signatures count if the form and signing app record the date and time.
Counting business days
Business days generally exclude weekends and federal or state holidays. If day three lands on a holiday or weekend, it typically rolls to the next business day. If your form defines business days, that definition controls.
What attorneys can do
During attorney review your attorney can:
- Send a written disapproval that ends the deal.
- Return a redlined contract or addendum with changes for negotiation.
- Do nothing. Silence means the original contract becomes binding after the period ends.
Can you waive or extend?
You can agree to shorten or waive attorney review, but it is risky if you have not checked title, inspections, or financing. Extending the period requires both parties to agree in writing.
Buyer checklist during attorney review
Use this short window to protect yourself and tighten up the contract. Here is what to focus on with your attorney.
Confirm contract basics
- Purchase price, deposits, closing and occupancy dates, and all contingencies.
- Any seller credits, personal property to remain, and repair obligations.
- How earnest money is held in escrow and under what conditions it can be released.
- Prorations for taxes, HOA fees, and utilities, plus who pays which closing costs.
Title and deed items
- Order a title search to find liens, judgments, mortgages, easements, or restrictions.
- Confirm the deed type and that the seller will deliver clear, marketable title.
- Review title insurance expectations and who selects the title provider.
Inspections and property condition
- Make sure you have a clear inspection contingency with a set timeline.
- Schedule a general home inspection right away. Add radon, termite, roof, chimney, HVAC, sewer, mold, lead paint, or structural checks as needed.
- For older homes or known risks, consider testing for asbestos or underground storage tanks.
- Clarify how repair requests or credits will be handled and any escrow holdbacks.
Financing and appraisal
- Confirm mortgage contingency language and your loan commitment deadline.
- Ask your lender for a Loan Estimate and clarify your right to terminate if financing fails.
- If using FHA or VA, make sure appraisal and repair requirements are addressed.
Parsippany local checks
- Sewer and water: Confirm if the home is on municipal service or private septic and well. If septic or well, arrange inspections and any required testing or certifications.
- Permits and approvals: Verify permits for additions, finished basements, or conversions. Unpermitted work is a negotiation point.
- Flood risk: Review FEMA flood maps for any floodplain designation and insurance needs.
- Taxes: Confirm current property taxes and how they will be prorated at closing.
- HOAs and condos: Request bylaws, rules, budgets, minutes, and information on any pending assessments or violations.
Disclosures and required forms
- If the home was built before 1978, confirm lead-based paint disclosures.
- Obtain the seller’s property condition disclosures and ask about any known defects.
- Verify smoke and carbon monoxide requirements and any radon information.
Survey and boundaries
- Order a new or updated survey if there are boundary, easement, or encroachment concerns.
- Confirm that the deed description matches the property on the ground.
Title insurance and closing mechanics
- Confirm owner’s and lender’s title policies and any exceptions.
- Review how the deed will be recorded with the Morris County Clerk and any transfer taxes or affidavits needed.
Common negotiations and red flags
What buyers often negotiate
- Repair credits or seller repairs for safety and structural items.
- Clearing title issues, including liens and payoff letters.
- Adjusting the closing date to match appraisal or underwriting timelines.
- Adding specific protections, such as septic certification or radon mitigation.
- Having the seller cure municipal violations or obtain required certificates before closing.
Red flags to take seriously
- Title defects that cannot be cleared.
- Significant undisclosed water, structural, or environmental damage.
- Evidence of major unpermitted work.
- Severe mold or pest issues.
- Sellers who block reasonable inspection access.
- Lenders who cannot provide timely commitments.
If the seller’s attorney disapproves the contract and you do not reach a revised agreement, your deposit should be returned under the contract’s escrow terms.
Parsippany practical tips
- Building and permits: Ask your attorney to check Township records for permits, approvals, and open violations tied to the property. Use findings to negotiate repairs or credits.
- Septic and well: While much of Parsippany uses municipal service, some homes rely on private systems. Order inspections and confirm any Township or county requirements.
- Flooding and drainage: If the property appears near streams or low-lying areas, confirm flood zone status. Your lender may require flood insurance.
- Property taxes: Morris County taxes can be a meaningful part of your monthly cost. Ask for the current tax bill and assessment history, then confirm closing prorations.
- Environmental or historic limits: If the property sits near conservation areas or riparian corridors, future changes or additions might require extra approvals.
- Local records: Your team may consult the Parsippany-Troy Hills Building Department, Morris County Clerk, Board of Taxation, and Health Department, plus state flood resources.
Costs and timelines after review
- Attorney fees: New Jersey real estate attorneys may charge a flat fee or hourly rate for residential purchases. Confirm scope and inclusions at engagement.
- Inspection window: Inspections usually begin during or right after attorney review. Negotiations over repairs or credits can add days to your timeline.
- Appraisal and underwriting: Once your loan application is underway, the appraisal and lender review can take several weeks. Be ready to amend the closing date if needed.
- Title and survey: Your title company will issue a preliminary report. Clearing exceptions and confirming a clean policy happens before closing.
- Earnest money: Your deposit is typically held in escrow by the listing brokerage or title company. After attorney review ends, breaching the contract can put your deposit at risk per the agreement.
Quick timeline for buyers
- Day 0: Last party signs the contract. Engage a New Jersey real estate attorney immediately.
- Days 1 to 3: Attorney review period. Confirm contract terms, order title, schedule inspections, and request municipal and HOA documents.
- Days 4 to 14: Complete inspections, negotiate repairs or credits, and monitor title findings.
- Weeks 2 to 6: Appraisal and loan underwriting. Clear title conditions and finalize insurance.
- Closing week: Final walk-through, closing disclosure review, and closing.
Next steps
If you are under contract in Parsippany, move fast. Line up your attorney, book inspections, and start your title work within the review window. Keep communication tight so you can approve, amend, or exit on time.
Need a local, responsive guide from search to closing? Reach out to Sally Campuzano for buyer support tailored to Parsippany and nearby Morris County communities. Hablamos español.
FAQs
When does attorney review start in New Jersey residential deals?
- It usually starts on the date the last party signs the contract, and electronic signatures count if the form and app record the date and time.
Can my attorney extend the three business day review period?
- Only if both buyer and seller agree in writing to extend; one-sided extensions are not binding.
Do I get my earnest money back if my attorney disapproves in time?
- Yes, a timely written disapproval voids the contract and deposits are typically returned under the escrow instructions.
Should I waive attorney review to make my offer stronger in Parsippany?
- You can, but it removes a key protection; consult your attorney and understand inspection, title, and financing risks before waiving.
How is attorney review different from the inspection contingency?
- Attorney review is a short legal review window to accept, modify, or void the contract; an inspection contingency lets you inspect and seek repairs or terminate for condition issues.
How quickly should I schedule inspections after signing in Parsippany?
- Immediately upon mutual signing so results are ready for negotiations before the period ends or right after it becomes binding.
