Why New Jersey Uses Real Estate Attorneys
New Jersey is one of the few states where real estate attorneys are commonly involved in residential real estate transactions. After a contract is signed, the agreement typically enters a three-day attorney review period where attorneys can review and modify the contract.
This process is designed to protect buyers and sellers, but it can also affect timelines and negotiations.
What Does a Real Estate Attorney Do for the Seller?
A New Jersey real estate attorney may:
- Review the contract
- Negotiate terms
- Address title issues
- Coordinate with the title company
- Prepare closing documents
- Handle legal issues related to the property
- Review liens or judgments
- Help resolve issues before closing
Attorneys play a major role in making sure the transaction is legally compliant.
What Happens If You Don’t Use an Attorney?
If an attorney is not involved, the title company may still:
- Perform the title search
- Issue title insurance
- Prepare the closing statement
- Hold and distribute funds
- Pay off the mortgage
- Record the deed
- Coordinate the closing
However, it’s important to understand:
A title company is a neutral third party and cannot give legal advice or represent you legally.
This is why some sellers still choose to have an attorney, even if a title company is handling the closing.
Who Chooses the Title Company and Attorney in NJ?
In many New Jersey transactions:
- The buyer often chooses the title company (especially if they are getting a mortgage)
- The seller chooses their attorney
- The buyer chooses their attorney
However, this can vary depending on the agreement between the buyer and seller.
Do You Need Both in New Jersey?
Many New Jersey real estate transactions involve both an attorney and a title company, but not every situation is the same.
You may want an attorney if the property involves:
- Probate or inherited property
- Foreclosure
- Liens or judgments
- Divorce
- Title disputes
- Short sale
- Tenant issues
- Legal complications
Some simpler transactions — especially cash sales — may be handled primarily through a title company, but many sellers still choose to have an attorney review the contract.
When Legal Issues Come Up
Attorneys are especially important when a property has:
- Liens
- Probate
- Code violations
- Open permits
- Title issues
- Tenant issues
- Foreclosure
- Short sale
These situations often require legal coordination before closing can happen.
What Is Attorney Review in New Jersey?
Attorney review is a three-business-day period that begins after both parties sign the real estate contract. During this time:
- Attorneys can cancel the contract
- Attorneys can request changes to the contract
- Attorneys can add contingencies
- Closing timelines can be adjusted
The transaction is not fully binding until attorney review is completed.
What Happens After Attorney Review?
After attorney review is completed:
- Home inspection takes place
- Mortgage approval (if applicable)
- Appraisal
- Title search
- Municipal inspections (CO / CCO)
- Final walkthrough
- Closing
This is why the attorney review period is just the beginning of the closing process in New Jersey.
Attorney Review vs. Closing Timeline
A typical New Jersey closing timeline may look like this:
| Step | Timeline |
|---|---|
| Contract Signed | Day 0 |
| Attorney Review | 3–7 Days |
| Inspection Period | 7–14 Days |
| Appraisal | 2–3 Weeks |
| Title & Municipal | 2–4 Weeks |
| Closing | 30–60 Days |
Timelines vary depending on the property and transaction.
How Attorney Review Can Delay a Sale
While attorney review is important, it can sometimes delay the process if:
- Contract terms need to be changed
- Inspection contingencies are extended
- Title issues are discovered
- Liens or permits need to be resolved
- Closing dates are renegotiated
Because of this, real estate transactions in New Jersey often take longer than in states without attorney review.
Frequently Asked Questions
Is an attorney required to sell a house in NJ?
New Jersey does not legally require an attorney, but most real estate transactions involve attorneys during attorney review and closing.
How long is attorney review in NJ?
The standard attorney review period is three business days, but it can be extended if attorneys are negotiating contract changes.
Can a contract be canceled during attorney review?
Yes. Either party can cancel the contract during attorney review.
Do attorneys handle closing in NJ?
In many cases, attorneys work with title companies to prepare documents and finalize the closing.
Need a Faster, Simpler Sale?
Some homeowners choose to sell without dealing with attorney negotiations, inspections, and delays, depending on their situation.
Learn more here:
Sell Your House Fast for Cash in New Jersey