DH and I are leaving for a week this Saturday. Our bid was accepted yesterday, our attorney received the signed documents from the seller’s attorney this morning. We have a conference call with our attorney tomorrow morning, the goal being we are in and out of attorney review and can hold an inspection on Friday.
What “legalize” is required to make sure we protect ourselves from anything drastic that may come out in the inspection post initial papers are signed? The seller is also not giving the okay to hold the inspection prior to getting out of attorney review (in case it drags on).
Why would the seller do this? What additional items did you put in your initial documents to make sure you get your deposit/down payment $$ back in case the inspection reveals too many bad things? Or is it just standard contract wording that protects a potential buyer…
nov2004bride
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Re: Attorney review and inspection
I can't help you but it seems really wierd that he wil not let you get the inspector in first. Did the seller give any reason why?
IrishBride-05
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Re: Attorney review and inspection
Posted by nov2004bride
I can't help you but it seems really wierd that he wil not let you get the inspector in first. Did the seller give any reason why?
I thought that too, when I read the post. The inspection is usually done before any contract is sent.
blushingbride2003
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I agree, that is weird. We had an inspection first before any contracts were signed. We reviewed the engineer's report and then decided to go to contract because everything was ok with the house.
september2004
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Re: Attorney review and inspection
this is jersey i am dealing with so i don't know if that makes a difference....
i was told we have a 3 day 'cooling off' period when both seller and buyer can walk away for no reason. post the 3 days and some back and forth between the attorney's the contract becomes effective and the inspection can take place within 10 days. we want to speed up the process and do it friday which would be during the 'cooling off' period, don't know if that is what the seller is weary of...the fact she is not definitely letting us do this is making us weary.
we'll find out tomorrow from our attorney. we need to be in and out before we leave and/or have something in the contract protecting us to receive our deposit back in case we don't like the results of the inspection, i just don't know what that 'legalize' is...
DjPiLL
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Re: Attorney review and inspection
The seller wants to wait on the inspection until you sign and (send in your money).
Most likely reason... once the seller has your cash... he has more leverage.
Tough call to make.
september2004
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Posted by DjPiLL
The seller wants to wait on the inspection until you sign and (send in your money).
Most likely reason... once the seller has your cash... he has more leverage.
Tough call to make.
exactly - the attorney stated the more additional info we put requiring items pending inspection the longer we will stay in attorney review. he states that we will be protected against major items and the small stuff will have to be negotiated. i just want to make sure we're protected as much as possible.
FTRBRIDE
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Re: Attorney review and inspection
New Jersey has some very strange rules on real estate, and they vary GREATLY depending on whether you are in north Jersey or South Jersey. I don't know what the custom is in the area that you are in, but I would NEVER sign a contract prior to a professional engineer doing the inspection and writing the report.
butterfly20
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we had the inspection before the contract was signed- then our atty through int he contract subject to atty review for like a week.....(which gave us an out if we wanted..)
september2004
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Re: Attorney review and inspection
before i could even blink, here we are already out of attorney review! inspection is tomorrow before we leave and seller bumped up the closing date which actually is okay with us.
things are moving so fast! hopefully the issues i have with the house turn out to be manageable ones through the inspection - wish us luck!
bride04
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Re: Attorney review and inspection
we bought in nj too and it is very different from ny. we had our inspection after we signed the contract, but our contract had a clause in it about the inspection. i don't remember the exact wording, but it was something to the effect of if the inspection was not satisfactory, we could walk away. i think it listed some specifics, but also said something like 'no major stuctural damage.' i think i also remember our lawyer saying that even after you are out of attorney review, nothing is legally binding until you give your down payment. i could be wrong though. we only gave a good faith deposit of i think $1000 before the inspection. after everything turned out okay we gave the rest of our down payment. good luck with the inspection! where are you buying in nj?
september2004
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Re: Attorney review and inspection
Posted by bride04
we bought in nj too and it is very different from ny. we had our inspection after we signed the contract, but our contract had a clause in it about the inspection. i don't remember the exact wording, but it was something to the effect of if the inspection was not satisfactory, we could walk away. i think it listed some specifics, but also said something like 'no major stuctural damage.' i think i also remember our lawyer saying that even after you are out of attorney review, nothing is legally binding until you give your down payment. i could be wrong though. we only gave a good faith deposit of i think $1000 before the inspection. after everything turned out okay we gave the rest of our down payment. good luck with the inspection! where are you buying in nj?
new providence - where are you?
we did the same $1000 thing, and i believe our deposit is due in 10 days, that is why i wanted to have the inspection done tomorrow, just in case...
our attorney explained the standard contract plus his addendum is enough to protect us from major items. as long as the inspector cites damage the attorney can argue our case, it's the 'natural wear and tear' items that are more difficult to handle...
HearzBellz
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Re: Attorney review and inspection
Posted by IrishBride-05
Posted by nov2004bride
I can't help you but it seems really wierd that he wil not let you get the inspector in first. Did the seller give any reason why?
I thought that too, when I read the post. The inspection is usually done before any contract is sent.
Indeed. I would agree that an inspection is vital to have a proper contract. Otherwise you are leaving no responsibility with the current homeowner if there is major damage, or an illegal structure on the property (like a DIY dormer or a shed without a c/o).
littlewilson
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Re: Attorney review and inspection
We are in contract in NJ right now, and yes -real estate buying procedures vary from state to state. As you already know, in NJ there is generally a 3 business day attorney review period once an offer is accepted. Attorney review will actually end though, once both attorneys are satisfied and signed off on the terms of the preliminary offer/contract. In our case, this actually took about a week, so you really can't assume it will definitely be 3 days.
Generally, your contract will specify that the full deposit is due 10 calendar days from the day attorney review ends. Within that 10-day period, you will want to make sure that you've had your inspection done (ASAP) and that any issues and negotiations arising from the inspection are worked out. Once your deposit is in and accepted, you're officially in contract.
Hope that helps!
ETA: If the inspection reveals structural issues or other major flaws, or if you find that the sellers have been dishonest in any prior disclosures, you should have absolutely no problem getting out of the deal, in which case your good faith deposit will be returned. Your offer/contract may also offer you other contingency loopholes...for example, that you can get out of contract if you fail to acquire a mortgage, etc. This would vary from contract to contract - you should be sure to read yours over and be familiar with all of the contingencies and stipulations.
