Understanding Attorney Review During a Divorce Home Sale in New Jersey

Attorney review works the same in a divorce sale as in any New Jersey sale: an attorney for the buyer or the sellers can review and disapprove a contract a real estate licensee prepared, within three business days of delivery of the signed contract. What's different is that there are two sellers, often with two divorce attorneys, so decide before the first offer who handles attorney review for the two of you and how both of you approve changes.

I'm Dennis Mark Interdonato, a REALTOR® and Master CDRE® with The Dennis Mark Group at Keller Williams Realty Ocean Living. Attorney review is the stage people outside New Jersey have never heard of, and the one divorcing sellers most often underestimate. Here's the rule, and what it looks like with two sellers.

What is attorney review in New Jersey?

When a real estate licensee prepares the contract for a home with one to four units, New Jersey's rule builds in a three-day attorney review (N.J.A.C. 11:5-6.2):

• The buyer or the seller may have an attorney review the contract, and the attorney has to finish within three days.
• You count the three days from the date the signed contract is delivered to the buyer and the seller. Saturdays, Sundays and legal holidays don't count.
• To disapprove, an attorney notifies the brokers and the other party within the period, by certified mail, telegram or delivery to the broker's office.
• If no attorney disapproves in time, the contract is legally binding as written.
• The buyer and seller can agree in writing to extend the period.

One correction to a common belief: the clock doesn't start when the last person signs. It starts when the signed contract is delivered. For the general version, read what is attorney review in New Jersey.

Why is attorney review harder in a divorce sale?

• More attorneys. Each spouse may have a divorce attorney, plus whoever handles the real estate.
• The contract has to fit the case. The closing date, possession and how the proceeds are handled need to line up with your agreement or order.
• Two sellers have to agree on every change. A buyer's attorney asks for a new closing date or a credit, and both of you have to say yes.
• Money decisions overlap with the settlement. A price change during review moves the number the two of you are dividing.

Who reviews the contract for two divorcing sellers?

That's a question for your attorneys, and it needs an answer before the house is listed. Whatever you choose, the contract needs the right names and addresses for the disapproval notice, and every attorney involved needs to be reachable the day an offer is signed. Three business days goes fast.

How do changes get approved during attorney review?

Through one channel, in writing, to both sellers at once. When the buyer's attorney sends proposed changes, both of you get the same copy at the same time with a plain-English summary of what it means for the price, the timeline and the net. Each change is approved by both of you, or by whoever your order gives that authority. Nobody negotiates with the buyer's side on their own, and every version is kept. Read how offers are presented in a divorce sale.

Can attorney review cancel the deal?

Yes. Either side's attorney can disapprove within the three days, and the contract ends. That protects buyers and sellers alike, which also means the deal isn't final until review ends without a disapproval. Don't schedule movers or count proceeds before then.

What happens if attorney review gets extended?

The buyer and seller can agree in writing to extend it. What matters is that the extension, and its new deadline, go to both owners in writing.

How does attorney review affect the rest of the timeline?

Everything after it waits on it: the inspection, the buyer's mortgage steps and the closing date. Ask the attorneys how your contract's inspection and mortgage deadlines are counted, and I'll have the house ready and access scheduled the day it's needed. Read how long a divorce home sale takes.

What mistakes do divorcing sellers make in attorney review?

• Thinking the deal is done when both of you sign
• Not having the sellers' attorney lined up before the first offer
• One spouse talking to the buyer's side privately
• Agreeing to a closing date the order or agreement doesn't allow
• Letting a change sit until the three days run out

Frequently Asked Questions

How long is attorney review in New Jersey?

Three days, counted from delivery of the signed contract to the buyer and the seller, not counting Saturdays, Sundays or legal holidays. It can be extended in writing.

Does attorney review start when we both sign?

No. It starts when the signed contract is delivered to the buyer and the seller.

Can our divorce attorney handle attorney review?

Ask them. Decide who handles it before you list.

Can the buyer back out during attorney review?

Yes. The buyer's attorney can disapprove within the three days, the same as the sellers' attorney can. That's why nobody should count the deal as done until the period ends.

Is the sale final after attorney review?

The contract becomes binding if no attorney disapproves in time. The sale still has to get through the contract's other steps, like the inspection, the mortgage and the closing.

This is general information, not legal, tax or lending advice. Your attorney gives the legal advice on your contract.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. See how he handles home sales during a divorce.

Keep reading

• The Divorce Guide
• See what your home could be worth
• How communication works during a divorce sale
• Have a question this didn't answer? Send it to Dennis Mark.