For realtors, understanding the legal process of a real estate transaction is crucial to ensuring a smooth and successful sale. One critical stage in this process is attorney review, which can have a significant impact on the final outcome of the transaction.
What is Attorney Review?
Attorney review is a legal process that takes place after the buyer and seller have agreed to the terms of a real estate transaction. During this period, both parties' attorneys will review the contract to ensure that it is legally binding and protects their client's interests. This is an essential step in any real estate transaction, as it helps to identify any potential issues that could derail the sale.
What Happens During Attorney Review?
The attorney review period typically lasts between three to five business days, during which time the attorneys for both parties will review the contract and make any necessary revisions. During this period, either party can cancel the agreement without penalty. It's important to note that attorney review is not a negotiation period. The purpose of attorney review is to ensure that the terms of the agreement are legally sound and protect the interests of both parties.
Here's what typically happens during attorney review:
First the buyer's attorney will review the contract to ensure that it includes all necessary terms and conditions and that they are favorable to the buyer's interests. They will also ensure that the contract complies with any state and local laws.
Next the seller's attorney will review the contract, and any revisions made by the buyer's attorney, to ensure that it includes all necessary terms and conditions and that they are favorable to the seller's interests. They will also confirm that the contract complies with any state and local laws.
If either attorney identifies any issues or concerns, they will typically draft revisions to the contract and send them to the other party's attorney.
The attorneys will negotiate any revisions until both parties agree on the final terms of the contract.
Once both parties have agreed to the final terms of the contract, the attorney review period ends, and the contract becomes binding.
In summary, attorney review is an essential part of any real estate transaction. It's a time when all parties can review the contract and ensure that it is protecting their respective parties' interests. By understanding what happens during attorney review, realtors can better prepare their clients for this critical stage in the transaction and help ensure a successful sale.
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