Helen is selling her home in Morris County without a real estate agent. She and the buyer, Frank, drafted their own purchase contract without using a standard form. The contract does not include an attorney review clause. After signing, Frank's attorney contacts Helen and states that the attorney review period still applies. Helen argues that since there is no attorney review clause in the contract, the provision does not apply. Which statement is correct under New Jersey law?
Correct Answer
D) Frank's attorney is correct; the attorney review period applies to most residential real estate contracts in New Jersey regardless of whether it is written into the contract.
New Jersey's attorney review provision was established by the NJ Supreme Court in Weichert Realtors v. Ryan (1983) and applies broadly to residential real estate contracts. The provision is not limited to contracts that expressly include an attorney review clause, nor is it limited to contracts prepared by brokers. Even in a for-sale-by-owner transaction where the parties drafted their own contract, the three-business-day attorney review right is available to both parties. The right exists as a matter of New Jersey public policy and cannot be eliminated simply by omitting the clause from the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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