Short answer: In New Jersey, when a real estate agent prepares the contract for a 1-to-4 family home or a vacant lot, either side’s attorney has three business days to review it. During that window, an attorney can disapprove the contract, which cancels it, or propose changes. If nobody acts in time, the contract becomes binding as written.
Saturdays, Sundays and legal holidays do not count toward the three days.
Where the rule comes from
The attorney review period dates to a 1983 New Jersey Supreme Court decision involving the state bar association and the state’s REALTOR boards. It lets agents prepare standard contracts while protecting buyers and sellers, who can still have a lawyer review the terms.
When the clock starts
The three days begin when the fully signed contract is delivered to the buyer and the seller, not just to the agents. Your attorney can confirm the exact deadline for your deal.
What can happen during attorney review
- Approval or silence. If no attorney disapproves in time, the contract stands as written.
- Disapproval. Either attorney can disapprove, which voids the contract. No reason is required.
- Proposed changes. An attorney may ask for revised terms. Those changes bind only when the other side accepts them. A letter that proposes changes without clearly disapproving may not protect you, so clear language matters.
How notice must be delivered
Notice of disapproval must reach the agents and the other party within the period. Since a 2017 New Jersey Supreme Court decision, fax, email, personal delivery and overnight mail with proof of delivery are all allowed.
Why deals change hands here
In a busy market, a seller may receive a higher offer while a contract is still in review, and the seller’s attorney may disapprove to accept it. Buyers who want to keep their deal should respond quickly and keep their offer competitive. Our guide on how much over asking to offer in Morris County explains what is winning right now.
What about the “3-3-3 rule”?
You may see a “3-3-3 rule” online. It is a budgeting rule of thumb, not a New Jersey law. The “3” that matters legally in New Jersey is the three-business-day attorney review period.
What sellers should settle during review
Sellers often use this window to address who pays the mansion tax on sales over $1 million, the closing date, and items like the New Jersey smoke cert.
This article is general information, not legal or tax advice. Rules change and can vary by town, so confirm details with your attorney, accountant or the agency named before you act.
Frequently asked questions
How long is attorney review in NJ?
Three business days, not counting Saturdays, Sundays or legal holidays.
Can a seller back out during attorney review in NJ?
Yes. Either side’s attorney can disapprove the contract during the period, which cancels it.
Can attorney review be extended?
Yes, if both sides agree in writing.
How is attorney review notice delivered?
By fax, email, personal delivery or overnight mail with proof of delivery, to the agents and the other party within the period.
Sources
- NJ Supreme Court: NJ State Bar Ass’n v. NJ Ass’n of Realtor Boards (1983)
- NJ Supreme Court: Conley v. Guerrero (2017)
Talk to the MorrisAgent Team
Have an offer in attorney review and want a second set of eyes? Call (973) 200-4800, email [email protected], or stop by our office at 518 Main Street, Suite 102, Boonton. No pressure, and no surprises.