Buying a Home in New Jersey: What Your Attorney Does That Your Realtor Cannot

Attorney Review in New Jersey Real Estate

New Jersey is one of a small number of states where attorney review is a standard part of residential real estate transactions. When you sign a contract of sale prepared by a realtor, you have a three-business-day attorney review period during which either party's attorney can disapprove the contract, propose modifications, or declare it null and void.

This attorney review period is one of the most important consumer protections in New Jersey real estate law — and most buyers do not use it effectively.

What Happens During Attorney Review

During the three-business-day window, your attorney will:

1. Review the contract for unfavorable terms, missing contingencies, and legal issues
2. Send a disapproval letter if modifications are needed (this preserves your right to negotiate)
3. Negotiate modifications with the seller's attorney
4. Confirm the contract once all parties agree on final terms

Common modifications include:

• Adjusting the closing date
• Adding or strengthening inspection contingencies
• Clarifying what personal property is included or excluded
• Adding a mortgage contingency
• Addressing title issues
• Negotiating repairs or credits based on inspection findings

The Mortgage Contingency

A mortgage contingency protects you if you cannot obtain financing. If the contract does not include a mortgage contingency — or if it is poorly drafted — you could lose your deposit if your loan falls through.

Your attorney will ensure the mortgage contingency:

• Specifies the loan amount and interest rate
• Provides sufficient time to obtain financing
• Clearly defines your rights if financing is denied

Title Search and Title Insurance

Your attorney will order a title search to identify any liens, encumbrances, or defects in the seller's title. Common title issues include:

• Unpaid mortgages or home equity lines
• Mechanic's liens from contractors
• Judgment liens against the seller
• Boundary disputes or easements
• Errors in prior deeds

Title insurance protects you against title defects that were not discovered in the search. Your attorney will review the title commitment and ensure you receive clear title at closing.

The Closing

At closing, your attorney will:

• Review all closing documents before you sign
• Ensure the HUD-1/Closing Disclosure accurately reflects the agreed terms
• Verify that all liens and encumbrances have been satisfied
• Ensure proper transfer of title
• Address any last-minute issues

What Realtors Cannot Do

Realtors are licensed to facilitate real estate transactions — they are not attorneys and cannot provide legal advice. They cannot:

• Advise you on the legal implications of contract terms
• Negotiate legal modifications to the contract
• Identify title defects or advise on how to resolve them
• Represent your legal interests at closing
• Advise you on your rights if the transaction goes wrong

The Cost of Not Having an Attorney

Real estate attorney fees in New Jersey typically range from $1,000 to $1,500 for a standard residential transaction — a small fraction of the purchase price. The cost of not having an attorney can be far greater: losing your deposit, purchasing a property with title defects, or being bound by unfavorable contract terms.

This article is for general informational purposes only and does not constitute legal advice.