The 'Quirk' of Buying or Selling a Home in New Jersey

If you’re buying or selling residential real estate property in New Jersey might notice something unusual compared to most other states. Instead of starting with a short letter of intent or simple term sheet, New Jersey’s typical practice is to sign the full Realtor form contract right from the start.

Here’s how it works:

Step 1: Buyer signs the actual contract.

The buyer fills in the purchase price, deposit, and other key terms on the NJ Realtors standard form, signs it, and sends it to the seller.

Step 2: Seller signs — and the clock starts ticking.

Once the seller signs, a three-business-day period begins. At the end of that period, the contract becomes fully binding as written — unless an attorney steps in.

Step 3: Only attorneys can “disapprove” the contract.

During those three business days, only an attorney for the buyer or seller can send a notice stating they “disapprove of the contract in its current form” and propose changes. This is typically done through an attorney review letter or addendum. In many deals, the buyer’s attorney makes the first move, but the seller’s attorney may send their own revisions — especially if the buyer’s side is slow to act and the three-day window is about to expire.

Step 4: Attorney review begins — and the three-day limit disappears.

Once an attorney sends that “disapproval” letter, the contract enters attorney review. At this stage, the original three-business-day deadline no longer applies. Negotiations can continue for as long as both sides wish — technically, without a time limit.

Step 5: The hidden risk — sellers can still take other offers.

While the attorney review period is open, the seller is not locked in and can still consider or even accept other offers. For buyers, this means speed matters: the longer attorney review drags on, the more chance another buyer swoops in.

Why it matters:

This process — “sign first, negotiate second” — can feel backwards to buyers, sellers, and investors. But it’s the norm in New Jersey, and knowing the rules can protect you from losing leverage or even losing the deal entirely. The safest move? Have your attorney ready to act the moment you sign — or better yet, involved before you put pen to paper.