The New Jersey Attorney Review Period
In New Jersey, the real estate contract you sign is a standardized form document — and the state built in a mandatory “timeout” before it becomes fully binding. This is called the Attorney Review Period, and it’s one of the most important consumer protections in the New Jersey home buying process.
The clock starts the moment both you and the seller have received a fully-executed copy of the signed contract. From that point, both sides have three business days (weekends and legal holidays do not count) to review the agreement. During this window, either party may approve the contract, request modifications through a written rider or “review letter,” or cancel the deal entirely — without penalty.
If no one disapproves or requests changes within three business days, the contract automatically becomes fully binding. If modifications are requested, the review period remains open until both sides reach agreement or one party walks away. In practice, most modification negotiations wrap up within five to ten business days of signing. I can recommend several local attorneys if you wish to contact one.
3 Business Days
Saturdays, Sundays, and legal holidays do not count toward the three-day period.
Either Side Can Cancel
For any reason during attorney review, without penalty. Your deposit is returned in full.
Modifications Are Common
Inspection terms, contingency details, and other contract protections are frequently negotiated during this window — I handle all of that for you.
Unique to New Jersey
This protection applies only when a licensed NJ real estate agent prepared the contract on the standard Realtors® form.
Contract-to-Close Timeline
First Deposit (Initial Earnest Money)
Your contract requires an initial deposit — typically called earnest money — to be delivered within five days of the contract signing date. This is separate from your down payment and demonstrates your serious intent to purchase. The funds are held in escrow by the listing broker until closing.
- Confirm the amount with me — it’s specified in your contract and I’ll make sure you know exactly what’s due.
- Delivery method matters: personal check, bank check, or wire — I’ll walk you through exactly how to deliver it.
- Funds are held in a trust/escrow account until closing day.
Home Inspections
The standard NJ contract gives buyers 14 calendar days from the signing date to complete inspections and raise any concerns. Do not wait until attorney review ends to schedule — reputable inspectors in Cape May County book out quickly, especially in-season.
- General Home Inspection — A licensed inspector evaluates the structure, roof, electrical, plumbing, HVAC, and more.
- Wood-Destroying Insect (WDI/Termite) Inspection — Required by most lenders. Termite activity is common in South Jersey’s humid climate.
- Septic Inspection — Many Cape May County properties operate on private septic systems. Inspection and certification is critical.
- Well Water Test — Required for properties on private wells. Test for coliform bacteria, nitrates, and any locally relevant contaminants.
- Chimney / Fireplace Inspection — Recommended if property includes a fireplace or wood-burning appliance.
- Pool & Spa Inspection — Important for the many waterfront and recreational properties in Cape May County.
After inspections, I will negotiate any repair credits or seller remediation on your behalf based on the findings — keeping you informed every step of the way.
Second Deposit
A second, larger earnest money deposit is typically due within 14 days of the contract signing date. Combined with your first deposit, this brings your total earnest money to the amount specified in your contract — commonly 10% of the purchase price, though it varies. These funds continue to be held in escrow and are credited toward your down payment at closing.
- I’ll remind you of the exact amount and deadline — but have your funds organized well in advance.
- Have funds readily accessible — wire transfers may require 1–2 business days to arrange.
- All deposit funds are credited to you at the closing table.
Formal Mortgage Application
If you are financing your purchase, your formal mortgage application should be submitted to your lender right away — do not wait for attorney review to end. Your lender will order an appraisal and begin underwriting. The sooner you submit, the more runway you have before the mortgage commitment deadline.
- Provide all requested documents to your lender promptly — delays in document submission are the most common cause of missed mortgage commitment deadlines.
- Do not make any major financial changes while under contract: no new credit cards, no large purchases, no job changes. This can jeopardize loan approval.
- Your lender will order an independent appraisal of the property. If the appraisal comes in below the contract price, call or text me right away — I’ll work through your options with you.
Obtain Homeowners Insurance
Your lender will require proof of homeowners insurance prior to closing. Begin shopping for insurance shortly after going under contract — don’t wait, as some insurers may require an inspection of the property before binding coverage.
- Coverage must be effective on or before your closing date.
- Your lender will typically require you to pay the first year’s premium at or before closing.
- In Cape May County, many properties are near the coast — windstorm, flood, and tidal surge coverages may be separate policies. Discuss all coverage needs with your insurance agent.
- Provide your insurance agent’s contact information to your lender early in the process.
Mortgage Commitment Deadline
Your contract includes a mortgage contingency with a commitment deadline — typically 30 days from the signing date. This is your lender’s formal written commitment to fund your loan, subject to final conditions. Missing this deadline without an extension from the seller can put your deposit at risk.
- Respond to every lender request immediately. Underwriters often need additional documentation, and delays compound quickly.
- If you anticipate a delay, let me know right away — I’ll work with the other side to get an extension in writing before the deadline passes.
- A commitment letter is not the same as a “clear to close” — you may still have conditions to satisfy after commitment is issued.
Title Search & Title Insurance
In Cape May County, the title company manages the entire closing process — there are generally no attorneys at the closing table in South Jersey. The title company will conduct a title search to confirm the seller has clear ownership and that there are no liens, judgments, or encumbrances on the property. You will be offered an owner’s title insurance policy to protect your ownership interest after closing.
- Owner’s title insurance is a one-time premium paid at closing and protects you for as long as you own the property. It is highly recommended.
- Your lender will require a lender’s title insurance policy (also paid at closing) as a condition of your loan.
- If any title issues surface, I’ll coordinate with the title company to get them resolved before closing day.
Final Walk-Through
Prior to closing, you have the right to conduct a final walk-through of the property — typically 1 to 3 hours before the closing. This is not a second inspection; it is your opportunity to confirm that the property is in the same condition as when you made your offer, that any agreed-upon repairs have been completed, and that all included fixtures and appliances remain in place.
- Test all appliances, light switches, faucets, and HVAC systems.
- Confirm any negotiated repairs were completed — request receipts from licensed contractors.
- Check that personal property included in the sale (refrigerator, washer/dryer, etc.) is still there.
- If you discover any issues, contact me before you sit down at the closing table — I’ll handle it.
Transfer Utilities Into Your Name
Three days before your scheduled closing date, call each utility provider to schedule service in your name, effective on the closing date. Don’t wait until the day of closing — some utilities require advance notice and a setup appointment.
- Electric: Atlantic City Electric (ACE) serves most of Cape May County. Call 1-800-642-3780 or set up service at atlanticcityelectric.com.
- Natural Gas: South Jersey Gas serves Cape May County. Call 1-888-766-9900 or visit southjerseygas.com. Note: not all properties have gas service — confirm with your agent.
- Internet & Cable: Comcast/Xfinity and local providers serve the area. Schedule installation in advance — first-available appointments can be 1–2 weeks out.
- Phone: Contact your preferred carrier to transfer or establish service at the new address.
- Water & Sewer: The title company typically handles the transfer of municipal water and sewer service accounts at closing — I’ll confirm the details for your specific property.
The Closing Table
In Cape May County, closings are conducted at the title company — not a courthouse. The title company coordinates all payoffs, collects signatures, disburses funds, and handles deed recording. I’ll be reachable throughout the day and will have already coordinated everything in advance so closing goes smoothly.
- Bring a government-issued photo ID (driver’s license or passport).
- Bring a certified or cashier’s check (or confirm a wire transfer was received) for your closing costs and any remaining down payment. Personal checks are generally not accepted for closing funds.
- Review your Closing Disclosure carefully — compare it to the Loan Estimate you received from your lender. Question anything that looks different.
- Signing can take 30 minutes to nearly an hour. Take your time and ask questions before you sign anything you don’t understand.
- Once all documents are signed and funds are disbursed, the title company will record the deed with Cape May County — and you’ll receive your keys.
⚠ Wire Fraud Warning — Read This
Real estate wire fraud has grown significantly in recent years. Criminals monitor real estate transactions and send convincing, fraudulent emails impersonating your title company, lender, or real estate agent — with “updated” wire instructions. If you wire money to a fraudulent account, it is nearly impossible to recover.
Always call your title company directly — using a phone number you find independently, not one from an email — to verbally confirm wire instructions before sending any funds. Never send money based solely on email instructions, even if the email looks legitimate. If you receive any email asking you to change wire routing or account numbers, treat it as suspicious and verify immediately.
Key Deadlines — Quick Reference
* All deadlines run from the contract signing date unless otherwise noted. Dates in your specific contract control — call or text me with any questions about your timeline.
Questions? Call or Text Me Directly.
Every transaction is different. If you have questions about your specific contract, timeline, or next steps, reach out.
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capemaychris.com
Chris Bezaire, Broker/Owner · Coldwell Banker Sol Needles Real Estate · Cape May County, NJ
