Sandra, a licensed New Jersey salesperson, prepares a purchase offer for her buyer client on a home in Morristown. The seller accepts the offer and both parties sign the contract on Tuesday. Sandra's buyer calls her on Thursday and asks whether the attorney review period has expired. Assuming no holidays intervene, which of the following is correct?
Correct Answer
B) No, the attorney review period expires at midnight on Friday because it is a three-business-day period beginning the day after signing
Under New Jersey's attorney review period rules, the three-business-day period begins the calendar day after all parties have signed the contract. The contract was signed on Tuesday, so Day 1 is Wednesday, Day 2 is Thursday, and Day 3 is Friday. The attorney review period expires at midnight ending Friday. On Thursday, the period has not yet expired, making option B correct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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