One of the most popular questions I get asked from both sellers and buyers is “Do I need to hire an attorney?”. Here in South Jersey an attorney in not needed to close on a property. That being said and before I go any further, I want to clearly state that I am not an attorney and can’t give legal advice! I always recommend that an attorney be used. If you choose not to use one in the beginning, one can be brought in at any point of the process.
Let me talk a little bit about our process in South Jersey. Once the negotiations have finished and we have an agreement between the seller and buyer, contracts are drawn up. Typically the listing agent takes care of the contract. The buyer will sign first and then the seller. The contract then goes back to the buyer (here is where New Jersey is different from most states) to have the Attorney Review Clause initialed. The Attorney Review Clause is a 3 business day period where either side can have an attorney review the contract and/or make changes. If after the 3 business days no changes are made then you are officially under contract. If an attorney makes changes then you continue in the review period until changes are ironed out. When Attorney review is finished there are 10 business days (Burlington and Camden Counties other counties may use calendar days) for the inspections to be done and any issues submitted. The mortgage process needs to begin as well. So the areas an attorney is particularly useful are in contract review, home inspection issues, mortgage issues such as appraisal problem and any unforeseen problems that may present themselves. The $700-$800 for an attorney when you think about the price of a home is insignificant for some peace of mind. When choosing an attorney, please use a REAL ESTATE attorney. Don’t use your cousin’s boyfriend’s criminal defense attorney uncle! The nuances in real estate law and criminal law are so completely different. After all you wouldn’t go to a dentist for a heart condition! One final piece of advice, please instruct your attorney to communicate with the agents, keep us in the loop. Sometimes, attorneys forget the agents and bi-pass them. I want to be in the loop so if things get stuck, I can help get the transaction back on track.
