S0 – we have written a contract, the price and terms have been negotiated and we have received the contract with the seller’s signatures. What is the next step?
Now we begin attorney review. Of course you will need an attorney. If you don’t already have an attorney, ask your Realtor if he or she can recommend a good one
First remember that either party may cancel the contract for any reason during attorney review.
Attorney review provides time for the attorneys for both the buyer and seller review the contract. Both may either approve or disapprove the contract. If either attorney disapproves the contract, they must send the other attorney a letter stating that they disapprove the contract. This letter usually also states that if the following modifications are made to the contract, it will be acceptable to their client. After some discussion and negotiations, the contract is quite often in a form that is acceptable to all parties. A that time, one attorney will prepare an addendum to the contract. This addendum will be signed by all parties, which in turn makes the contract binding to all parties.
Be sure to ask your attorney any questions that you may have about the contract during attorney review. If you have any concerns about the contract discuss them with your attorney. Make sure your attorney knows information about the property that may affect the contract. Examples are if the property has a swimming pool or if any other structures are present on the property. If the property has a septic system and / or a and well, your attorney should be aware of that also.
Many people think that attorney must be completed in three business days, but that is not true. Attorney review must be started within three business days, but until all parties have agreed on all points it will not be complete.
Next – Chapter 3, Time to apply for your Mortgage