Attorney Review in New Jersey: The Three-Day Period Explained

Here is the short answer. When a real estate licensee prepares the contract for a New Jersey home sale, signing it is not the last step. For three business days after the fully signed contract is delivered to the buyer and the seller, either side can have an attorney review it, and that attorney can cancel it. If no attorney disapproves in time, the contract becomes legally binding at the end of the period. This window is New Jersey's three-day attorney review. It comes from a 1983 New Jersey Supreme Court decision and is written into the New Jersey Real Estate Commission rule, N.J.A.C. 11:5-6.2.

Where New Jersey's three-day attorney review comes from

Attorney review grew out of an old question: when a broker drafts a sales contract, is that practicing law? A 1970 case, State v. Bander, left that open, and the New Jersey State Bar Association and the New Jersey Association of Realtor Boards later settled the dispute.

After public hearings, retired Justice Mark A. Sullivan, sitting by temporary assignment in the Chancery Division, entered a consent judgment on May 5, 1982. On June 28, 1983, the New Jersey Supreme Court approved it, with modifications, in New Jersey State Bar Ass'n v. New Jersey Ass'n of Realtor Boards, 93 N.J. 470, acting under its constitutional power over the practice of law.

The Court quoted the trial court on the purpose: to protect the public by making the contract "subject to prompt attorney review if either buyer or seller so desires." The Real Estate Commission wrote those requirements into its rule effective April 6, 1987.

It cannot be signed away

Under the consent judgment, the right to attorney review "shall not be waived, disclaimed, relinquished or abridged," and licensed brokers and salespersons are permanently barred from preparing, or helping to prepare, any document meant to waive it. Under the Commission's rule, a licensee who leaves the required language out is treated as engaging in the unauthorized practice of law and can be sanctioned.

Which contracts include attorney review

The rule applies to contracts prepared by licensees in deals where the licensee has a commission or fee interest, for:

• Sales of residential property with one to four dwelling units
• Sales of vacant one-family lots
• Residential leases of one year or more

New homes sold through a developer's affiliated brokerage can be covered too. In Calvert v. K. Hovnanian at Galloway, VI, Inc. (1992), the Supreme Court held that a licensed in-house salesperson selling new condominiums for a developer's affiliated broker must include the clause, even though the contract already had the seven-day cancellation right required by the Planned Real Estate Development Full Disclosure Act.

The notice at the top of your contract

The rule requires this notice at the top of the first page, in print larger than the main text:

"THIS IS A LEGALLY BINDING CONTRACT THAT WILL BECOME FINAL WITHIN THREE BUSINESS DAYS. DURING THIS PERIOD YOU MAY CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND CANCEL THE CONTRACT. SEE SECTION ON ATTORNEY REVIEW FOR DETAILS."

The statewide NJ REALTORS sales contract, Form 118, covers attorney review in Section 35 of the 8/16 sample NJ REALTORS posts online. That sample predates the 2017 Conley decision discussed below, so its list of ways to send a disapproval is out of date. Its first page, a Notice to Buyer and Seller, adds a practical point: without a lawyer, you cannot change or cancel the contract unless the other party agrees.

How to count the three business days

The required clause says: "You count the three days from the date of delivery of the signed contract to the Buyer and the Seller. You do not count Saturdays, Sundays or legal holidays." In Gordon Development Group, Inc. v. Bradley (App. Div. 2003), the court held that the period "commences to run on the day after the delivery of a fully-executed contract to the buyer and the seller," and that "there is one period of attorney review for both buyer and seller."

• Delivery means to the party. In Peterson v. Estate of Pursell (App. Div. 2001), the court held that the period begins when the signed contract is delivered to a party, and rejected the argument that handing it to the seller's listing broker started the clock.
• Legal holidays are skipped. N.J.S.A. 36:1-1 lists New Jersey's legal holidays, including Lincoln's Birthday (Feb. 12), Good Friday, Juneteenth (the third Friday in June), Columbus Day, Veterans Day and general election days. When a listed holiday falls on a Sunday, the following Monday is treated as the holiday. The statute also keeps State government offices open on Lincoln's Birthday. Attorney Gary F. Woodend notes that which days count as legal holidays is not always clear-cut, so confirm the deadline with your attorney when one is near.
• The period can be extended. Buyer and seller may agree in writing to extend it.

Here is how the rule plays out in a week with no legal holidays:

That matches Gordon itself: the fully signed contract reached the buyer on Thursday, September 28, 2000, and the seller's attorney's disapproval, delivered the following Monday, October 2, was timely.

How an attorney disapproves the contract

A disapproving attorney must notify the broker(s) and the other party within the three-day period. The contract must list the names and full addresses of everyone who must receive a Notice of Disapproval.

How that notice can travel changed on April 3, 2017. In Conley v. Guerrero, 228 N.J. 339, the Supreme Court held that a notice of disapproval "may be transmitted by fax, e-mail, personal delivery, or overnight mail with proof of delivery." Overnight mail is effective when mailed, and the review period "remains three business days." The Court asked the Real Estate Commission to consider amending its rule to match; the rule text published by Cornell's Legal Information Institute still lists certified mail, telegram and personal delivery. New Jersey REALTORS said it was updating its Form 118 contract and Form 125 lease to reflect the decision.

Conley also shows why the window matters. The seller signed on January 14, 2014, and the signed contract was delivered the next day. A bidding war began the same day the attorney-review period commenced, and the next day the seller accepted a higher bid. One day before the period ended, the seller's attorney e-mailed and faxed a disapproval to the buyers' attorney. The Court held it valid because the buyers received actual notice within the three-day period by a method of communication commonly used in the industry.

Asking for changes is not the same as disapproving

In Kutzin v. Pirnie (1991), both attorneys sent letters during review that asked for changes but did not disapprove. The Supreme Court held the contract "was legally binding as written at the end of the three-day period," apart from one change both sides accepted about who would hold the deposit, and noted the clients could instead have agreed in writing to extend the period while the attorneys negotiated. Woodend writes that most attorneys disapprove the contract but state in their notice that it can be reinstated if the other party agrees to certain changes.

Approval works the other way. In Romano v. Chapman (App. Div. 2003), both attorneys approved the contract, and the sellers then tried to disapprove it within the three days after a better offer came in. The court held that once the agreement is approved, "with or without changes, the client cannot back out of the agreement, even within the three-day period."

What attorneys commonly negotiate

New Jersey firm Simon Law Group lists common modifications, including:

• A longer inspection period
• Adjustments to the mortgage contingency
• Specific procedures for negotiating repairs
• Who is responsible for municipal certificates

What this means for buyers and sellers

Woodend recommends bringing in an attorney before the contract is fully signed. It also helps to note the date the fully signed contract reached both buyer and seller, and to check that the names and addresses listed for notices are correct. Until the period ends, or the attorneys approve the contract, either side's attorney may still be able to cancel it.

Our buyer's guide and seller's guide show where attorney review fits alongside inspection, appraisal and closing.

Buying or selling in Rahway or elsewhere in Union or Middlesex County? I'm glad to walk you through the attorney review timeline alongside your attorney, in English or Spanish. Contact Angela.

Educational information only, not legal, tax or financial advice. Angela Becerra is a New Jersey real estate licensee, not an attorney. Confirm your deadlines with your own New Jersey attorney. Sources reviewed in September 2026.

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