You just had your offer accepted in Montclair — now the clock starts. In New Jersey, you get a short window to have an attorney review your contract, negotiate protections, or walk away without penalty. That three business day period can make or break your deal. In this guide, you’ll learn exactly how attorney review works, what typically changes, the pitfalls to watch in Montclair, and the steps you should take immediately. Let’s dive in.
Attorney review basics in NJ
Attorney review is a standard part of most New Jersey residential contracts. After both parties sign, the contract goes to each side’s attorney. For a short period, an attorney can approve the deal, propose changes in writing, or cancel the contract.
The typical window is three business days. The clock usually starts when the fully signed agreement is delivered to the parties or their attorneys. Business days are weekdays, excluding legal holidays. The exact counting and delivery rules come from the wording in your contract.
If an attorney properly cancels during the window, both parties are released and the buyer’s deposit is typically handled per the contract. If the period ends with no objection, the contract becomes fully binding and enforceable.
Timeline and delivery details
The attorney review clock starts when the fully executed contract is delivered. With e‑signatures and email, delivery and proof of receipt matter. Many attorneys and agents document delivery times to avoid disputes.
During attorney review, attorneys may exchange riders or amendments. If both sides sign agreed changes within the window — or agree to extend — the deal continues under the new terms. If there is no objection or change signed in time, the original contract stands.
What gets negotiated
Financing and appraisal
- Define the mortgage contingency: loan type, rate ceiling, deadlines, and what happens if the loan is denied.
- Address appraisal risk: options for appraisal shortfalls, such as price reductions, seller credits, or buyer cash to cover a gap.
Inspections and repairs
- Set inspection timelines and how repair requests are handled.
- Add riders for specific tests when needed: radon, wood‑destroying insects, lead, oil tank sweeps, chimney, HVAC, or septic/well.
- Clarify remedies: seller repairs before closing, credits, price adjustments, or escrow for unfinished work.
Title, survey, and municipal items
- Give the buyer time to review title and survey and address exceptions, liens, or boundary issues.
- Specify municipal certificates or compliance the seller must provide, if required for transfer.
Closing date and occupancy
- Set a firm closing date or allow for lender timing.
- Define possession, holdover terms, or a short rent‑back if the seller needs time to move.
Fixtures and personal property
- Clarify what stays and what is excluded, like window treatments, light fixtures, or appliances.
Escrow and deposit language
- Specify who holds the deposit and how it will be released if the contract is cancelled.
HOA and condo reviews
- Set deadlines to review association documents, rules, budgets, insurance, and any transfer fees.
- Include remedies if the documents reveal unacceptable issues or assessments.
Environmental and disclosures
- Confirm federal lead‑based paint disclosures for homes built before 1978.
- Add testing procedures for radon and other environmental concerns.
Montclair specifics to watch
Older housing and lead paint
Many Montclair homes predate 1978. Expect lead‑paint disclosures and consider testing if you plan renovations. Older systems and materials also mean a greater chance of inspection findings.
Historic preservation rules
Montclair includes historic districts and a Historic Preservation Commission. Verify that past exterior work was properly approved and understand what future changes may require permits or reviews.
Permits, COs, and prior work
Older homes can have unpermitted alterations. Request permit history and any required municipal certificates early. Sellers should gather records; buyers should plan time to verify.
Property taxes and budgeting
Essex County taxes are a significant carrying cost. Request recent bills and tax history to help estimate monthly payments and escrow needs.
Flood and environmental factors
Some areas near waterways may require flood insurance. Ask your insurer for quotes and check maps if there is any concern. Lenders may require coverage in certain zones.
Appraisal pressures in hot markets
In competitive neighborhoods, prices can outpace recent comparable sales. This increases appraisal risk. Define clear appraisal contingency language during attorney review.
Condo and HOA governance
If you are buying a condo in Montclair, review budgets, reserves, meeting minutes, and any planned assessments to avoid surprises.
What can stall or kill a deal
- Inspection reveals major defects. Example: a 1905 Victorian shows structural or joist issues and knob‑and‑tube wiring. If the parties cannot agree on repairs or credits, the deal may not proceed.
- Appraisal comes in low. If a lender will not fund above appraised value and the buyer cannot bridge the gap, the mortgage contingency may allow cancellation or force renegotiation.
- Title defects or liens. Estate issues or municipal liens must be resolved before closing.
- Survey or boundary disputes. Encroachments or discrepancies may require agreements or corrections.
- HOA or condo concerns. Pending assessments, rules, or weak financials can be deal breakers for buyers.
- Insurance issues. Properties with flood risk or other concerns can face high premiums or coverage denials.
- Missing municipal certificates. Unpermitted work or required approvals can delay or halt closing until resolved.
- Financial changes. Buyer employment shifts or seller financial issues can derail underwriting or timing.
- Timely attorney objection. An attorney can cancel within the window if agreement on riders is not reached.
- Missed deadlines or miscommunication. Delays in delivering documents or unclear timing can cause avoidable cancellations.
Your 3‑day action plan
Buyers: first 72 business hours
- Send the signed contract to your real estate attorney immediately.
- Share your goals and constraints: closing date needs, repairs, appraisal concerns.
- Call your lender to confirm the mortgage timeline and document needs.
- Schedule a qualified home inspection and any specialty tests as soon as possible.
- Engage a title company and request a preliminary title commitment.
- Confirm lead‑paint disclosures for pre‑1978 homes and consider testing if needed.
- Request association documents for condos and begin your review.
- Ask for seller disclosures, permits, survey, and any required municipal certificates.
- Discuss appraisal contingency strategies with your attorney and lender.
- Track every deadline: the attorney review end, inspection periods, financing cutoff dates.
Sellers: first 72 business hours
- Send the contract to your attorney right away.
- Deliver documents quickly: deed, survey, tax bills, permits, receipts for major work, HOA packets.
- Provide prompt access for inspections and be flexible on timing.
- If repairs are likely, get contractor estimates to respond with clear options.
- Contact your mortgage holder about payoff and any prepayment details.
- If any work was unpermitted, ask your attorney about disclosures and municipal steps.
- If you need extra time after closing, discuss rent‑back terms with your attorney.
For both sides
- Put every change or cancellation in writing and deliver it per the contract.
- Keep communications documented. Email confirmations help prove delivery and timing.
- If you use electronic signatures and email, preserve timestamped records.
Timing priorities inside the window
- Attorney review and response.
- Schedule and conduct inspections.
- Confirm lender timeline and send requested documents.
- Review title, survey, and any HOA or municipal items.
- Prepare amendments or repair/credit proposals if issues arise.
Communication and risk management
Treat attorney review as a safety valve, not a formality. Timely attorney action can preserve your deposit or secure better terms. Clear, written instructions help prevent misunderstandings.
Coordinate your attorney, inspector, and lender from day one. Delays with any of them can limit your options. Sellers can reduce risk by assembling permits, surveys, and receipts up front.
Sample 3‑day timeline
- Day 0: Fully signed contract delivered. Attorney review clock starts based on contract language.
- Business Day 1: Buyer’s attorney reviews. Buyer orders inspection and requests documents. Lender confirms loan status.
- Business Day 2: Inspections occur. Title search starts. Attorney drafts rider with proposed changes.
- Business Day 3: Parties exchange riders and finalize changes or extensions. If no attorney objection is delivered in time, the contract becomes binding.
When the review ends
If no attorney objects within the three business days, the contract is binding as written. From there, the deal proceeds through inspections, mortgage commitment, title clearance, and closing. If an attorney cancels on time, the parties are released, and the deposit is handled under the contract.
Ready for local guidance?
If you are buying or selling in Montclair, you deserve clear advice and organized execution. Our team pairs neighborhood expertise with a proven, high‑touch process to help you use attorney review strategically and move forward with confidence. Connect with NJ From A to Z for a smooth experience from contract to close.
FAQs
How long is attorney review in New Jersey?
- The standard period is three business days beginning when the fully signed contract is delivered, with counting and delivery defined by the contract.
Can a buyer or seller cancel during attorney review?
- Yes. Either side’s attorney can disapprove and cancel in writing within the review window, typically releasing both parties per the contract terms.
Do inspections happen during attorney review in Montclair?
- Often, yes. Buyers usually schedule inspections quickly and add riders that define deadlines, repair options, and procedures for any specialty tests.
What happens if the appraisal is low in Montclair?
- The mortgage contingency and any appraisal language control. Options include renegotiating price or credits, buyer cash to bridge a gap, or cancellation per the terms.
Who holds the deposit in New Jersey deals?
- The contract specifies the escrow holder, which can be the broker, an attorney, or a title company, along with the release conditions if the deal ends.
Are Montclair permits or certificates required before closing?
- Requirements depend on the property and municipal rules. Parties often negotiate who will obtain any needed certificates or address unpermitted work.
How do historic districts affect a Montclair purchase or sale?
- Historic areas may require approvals for exterior changes. Buyers should verify past approvals and understand future restrictions during attorney review.
