It is a common myth that attorney review is limited to three (3) days. While, it is our practice to attempt to wrap up attorney review within this three (3) day period, we believe it is more important that the terms of the Contract be adjusted to properly serve our specific client before we deem attorney review concluded and subsequently labeling the transaction to be "under contract".
Essentially, the typical and standard Realtor Real Estate Contract provides for a three (3) day “Attorney Review Period.” Simply, that means that either side has an opportunity to have their respective attorney review, disapprove and/or make modifications to the Contract of Sale within this three (3) day period. Once an attorney disapproves of the Contract, then the “clock stops” and the parties have as much time as they need to negotiate the terms and modifications of the Contract. If no party offers a disapproval and/or proposed modification to the Contract of Sale, that Contract remains viable and enforceable. Similarly, after the expiration of the three (3) day attorney review period, if no one offers a disapproval or modification, the Contract is binding and may not later be disapproved or canceled based on the acceptance of the terms of the Contract.
As stated above, when an attorney disapproves a Contract and offers modifications to the terms of the Contract within the three (3) day Attorney Review Period, then the language of the Contract must be negotiated and adjusted between the attorneys over a few revisions to ensure that there is a "meeting of the minds" on material parts of the Contract of Sale. It is important for Sellers and Buyers to know what obligations and rights they may have in the Contract, and it's important that they ask important questions of their respective attorneys. Attorney review is a vital part of keeping the deal together if people understand and are able to ensure that their expectations are properly reflected in a Contract of Sale. It's better to take your time and negotiate the terms of a Contract up front to ensure that the transaction goes smoothly after the Contract of Sale is properly bound at the end of attorney review.
Stay with us in the coming weeks so that we can provide you insight as to the many important items in real estate contracts to which all real estate sellers and purchasers must be aware.
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