New Jersey Real Estate Attorney Christine Matus Highlights Common Issues That Arise During Attorney Review

RED BANK, NJ - The attorney review period in New Jersey real estate transactions represents a brief but critical window during which contract terms can be negotiated, modified, or cancelled entirely, and missing even one detail can trigger costly delays and serious legal consequences. New Jersey real estate attorney Christine Matus of The Matus Law Group (https://matuslaw.com/what-can-go-wrong-in-attorney-review-in-new-jersey/) is highlighting the common problems that arise during this three-business-day period and how buyers and sellers can protect their interests.

According to New Jersey real estate attorney Christine Matus, the attorney review process is required under New Jersey Administrative Code N.J.A.C. 11:5-6.2 in every residential real estate contract prepared by a licensed agent. The period begins the first business day after both the buyer and seller receive a fully signed copy of the contract, and Saturdays, Sundays, and legal holidays do not count toward the three days. Either party's attorney may disapprove the agreement for any reason within that window by sending a letter of disapproval to the other party's attorney and the real estate agents involved. "Contract misinterpretation is one of the most frequent issues that surfaces during review," explains Matus. "A single vague term can determine whether a buyer keeps or loses a deposit."

New Jersey real estate attorney Christine Matus emphasizes that unresolved property liens and title defects are among the most serious problems discovered during the review phase. A title search conducted during this period may reveal outstanding claims from unpaid taxes, contractor bills, or court judgments that must be resolved before the property can transfer cleanly to the buyer. Title defects such as errors in the deed, undisclosed heirs, or gaps in the public record can cloud ownership and may require legal action to resolve. Boundary disputes also surface when a property survey does not match the recorded description or when a neighbor's structure crosses the property line.

Attorney Matus notes that the legal consequences of overlooked review issues can be significant for both parties in a New Jersey real estate transaction. "Buyers who sign contracts without adequate protections risk losing their earnest money deposit if problems surface later," she adds. "Sellers who fail to disclose known issues may face breach of contract claims or lawsuits for misrepresentation." If a seller tries to back out of the deal after attorney review concludes without properly invoking a contingency, the buyer can seek specific performance, which is a court order requiring the seller to complete the sale.

The Matus Law Group advises that contingencies negotiated during attorney review provide essential protection against later-stage problems. A mortgage contingency clause typically sets a deadline of 30 to 45 days from contract signing for the buyer to secure a firm loan commitment. If financing is denied within that timeframe, the contingency allows the buyer to cancel and recover the deposit. A denial can result from a change in employment, a credit score drop, or a large purchase that shifts the debt-to-income ratio. An appraisal contingency protects the buyer if the appraiser's report values the property below the agreed contract price, giving options to negotiate a price reduction, contest the appraisal with comparable sales data, or cancel the contract entirely.

Buyers and sellers in New Jersey should be aware that the contract is not yet fully binding during the attorney review period. The seller's agent is required to present all offers received during this time, and if a more favorable offer arrives, the seller has the legal right to have their attorney send a letter of disapproval, terminating the original contract within the three-day window, and then accept the new offer. The seller is not required to disclose the reason for termination. The New Jersey Supreme Court established the attorney review process through its approval of the settlement in N.J. State Bar Ass'n v. N.J. Ass'n of Realtor Bds., and the court later confirmed in Conley v. Guerrero that a notice of disapproval may be transmitted by email, fax, personal delivery, or overnight mail.

The legal framework for attorney review rests on N.J.A.C. 11:5-6.2, which requires specific language at the top of every agent-prepared contract informing the parties that the agreement will become final within three business days and that they may consult an attorney who can review and cancel the contract. The regulation applies to properties containing up to four dwelling units and vacant one-family lots, and the clause cannot be waived by either party.

In Monmouth County, title searches and deed recordings go through the County Clerk's Office located at 33 Mechanic Street in Freehold, where property ownership records have been maintained since 1675. Attorneys involved in transactions in communities such as Red Bank, Freehold, Holmdel, or Colts Neck coordinate with the county's Division of Planning for zoning details and the Board of Taxation for assessed value information.

"Clear communication, thorough title investigations, and precise contract language are the strongest defenses against review-phase problems," states Matus. "Addressing potential issues during the review period, rather than after the contract becomes binding, gives both parties the leverage they need to negotiate effectively."

For those entering a New Jersey real estate transaction, working with an experienced attorney during the review period may help prevent costly delays, protect deposits, and ensure contract terms reflect the interests of both parties.

About The Matus Law Group:

The Matus Law Group is a New Jersey-based law firm focused on real estate law and estate planning. Led by attorney Christine Matus, the firm reviews contracts, conducts title investigations, and handles negotiations for buyers and sellers across Monmouth County, Ocean County, and throughout New Jersey. For consultations, call (732) 785-4453.

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