Does the 3 day attorney review period in a contract apply to a Buyer who is an attorney but doesn't practice real estate law?

Asked over 1 year ago - Mount Laurel, NJ

I am an attorney (do not practice real estate law and only remember the basics from law school) looking to purchase a new construction home with my non-attorney partner. The contract was drawn up by the builder and includes the 3 day attorney review clause. The process as I understand it is that the Buyer negotiates the price and options with the Seller and signs the contract, then once the Seller signs, the 3 day attorney review period begins. I know from reading the contract that there are several items that need to be changed. Should I sign it and then seek counsel from a real estate attorney to change it, or try to change the terms myself before I sign anything? If I changed the terms and signed it, wouldn't that negate the 3 day attorney review period?Can I do the closing myself?

Attorney answers (2)

  1. Michael T Millar

    Pro

    Contributor Level 19

    5

    Lawyers agree

    Answered . Technically, the three day attorney review period is only required in contracts that are prepared by a real estate broker (Opinion 26). The three day period begins to run when the fully executed contract is "delivered" to the parties.

    Requesting changes prior to signing the contract would not negate the three day attorney review period. If it is a broker prepared contract, attorney review will remain. If, however, you are not dealing with a real estate broker but are instead negotiating directly with the builder or its attorney, then you may elect to delete the attorney review period from the contract.

    My experience with new construction contracts is that the builder may negotiate price and delivery date - but will resist any substantive change to the form of contract. But, every builder is different and your results may vary.

    The nominal cost of retaining an experienced real estate attorney to represent a buyer should make the decision a "no brainer". You could do the closing itself. However, if you have no experience in real estate matters, the old adage about the attorney who represents himself / herself applies. A transaction involving new construction can be much different than the sale of an existing home. There are limitations and additional concerns with new construction. I would recommend that you consult a friend or colleague who handles transactional real estate - including new construction.

    If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education... more
  2. Christopher D. Ferrara

    Pro

    Contributor Level 7

    1

    Lawyer agrees

    Answered . I agree with Mr. Millar.

    No attorney-client relationship is created as a result of this submission. The information and answer provided is... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

22,859 answers this week

2,949 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

22,859 answers this week

2,949 attorneys answering