A licensed New Jersey salesperson prepares a purchase offer for a buyer. The buyer asks the salesperson to include a clause stating that the attorney review period is waived. The seller agrees and both parties sign the contract with the waiver clause. What is the legal effect of the waiver clause under New Jersey law?
Correct Answer
B) The waiver clause is void and unenforceable because the attorney review period is a mandatory right that cannot be contractually waived
Under New Jersey law and the joint policy of the New Jersey Bar Association and NJAR, the three-business-day attorney review period is a mandatory right established to protect consumers in residential real estate transactions. This right cannot be waived by contract, even if both parties agree in writing. A clause purporting to waive the attorney review period is void and unenforceable as against public policy. The salesperson who includes such a clause may also be subject to disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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