Attorney review is an integral component of real estate transactions, as issues discovered can cause delays, higher costs, or even result in the cancellation of the deal.
Problems during attorney review can range from misinterpreting contracts, unresolved property liens, and boundary disputes to lack of clear communication between attorneys. To mitigate such problems, thorough investigations of title must be performed on any property in question.
1. Review of the Contract
Attorney review is an exclusive legal process that allows real estate buyers and sellers to consult their respective attorneys to address contractual issues. During this period, all lawyers involved will regularly communicate with one another to ensure there are no ambiguities or misinterpretations of what their intentions were for both parties involved in the contract.
Attorneys will assess a contract and any related documents to identify any issues that need addressing. Once identified, they will draft a letter of disapproval or suggest changes that have to be addressed in the contract and send it over for review by both sides. Once agreeable changes have been approved by both sides, revisions to it can take place and closing can proceed as planned.
At this stage, attorneys may encounter common problems related to property descriptions and financial terms that require clarification. Kristen E. Johnson, Esq. has the experience needed to effectively address such matters through New Jersey real estate law.
2. Review of the Title
Title review examines the ownership chain for a property to ensure that its seller has legal permission to sell it and checks for liens or any issues which might postpone or cancel its sale.
Issues discovered through attorney review may require time and resources to resolve, including getting new surveys done, talking with neighbors or going to court – this can add extra costs and delay to an already pricey real estate deal.
Experienced transactional real estate attorneys are key in understanding the real estate purchase and sale process, and should work alongside you throughout this journey. An effective PSA should contain realistic title review timelines.
3. Review of the Survey
Attorney review entails scrutinizing contract terms to make sure that they do not create issues for buyers or sellers, potentially leading to significant delays, increased costs or even cancellation of transactions.
Once both parties have signed a fully executed contract of sale prepared by their realtor, an attorney review period begins. This typically lasts three days; weekends and legal holidays do not count towards this timeline.
At this stage, attorneys review both the contract and property in search of any issues that would delay or terminate the closing process, such as any liens that could impede it. A thorough survey may also be undertaken in order to address any discrepancies between what has been described on paper and the actual land that exist on it.
4. Review of the Boundaries
Attorney review is an essential component of real estate transactions. At this stage, attorneys representing both buyer and seller examine a purchase contract prepared by their realtor, looking out for terms which pose risks or disadvantages to either party and working to resolve those concerns before the contract becomes binding.
Attorney reviews can reveal serious problems that could halt the sale of a home, such as property liens, issues with title or boundary disputes that require lengthy legal proceedings, expensive inspections and even property cancellation.
Effective communication between buyer’s and seller’s attorneys is key in avoiding these common pitfalls, while an exhaustive examination of a property’s title and survey can further mitigate risk.
5. Review of the Inspection Contingencies
Home inspection contingencies allow buyers to hire professional inspectors and ensure that they are making an informed financial decision when it comes to buying property. In many instances, this component of the purchasing process and negotiation can play an essential role.
Purchase and sale agreements (sometimes known as contracts of sale) provide both parties with a framework of the terms and conditions agreed upon during a sale transaction. Attorney review involves carefully scrutinizing this document to identify any unfavorable or unclear provisions that could compromise their clients’ rights or obligations, and potentially halt final sale and closing processes; issues discovered during this stage include unresolved property liens or title problems which need resolving before closing can take place; however, often these problems can be overcome using attorney review process.