Home Buying in 07109>Question Details

Diane, Home Buyer in 07109

Made an offer to a house subject to bank approval,owner signed it.Do I need atty review now?

Asked by Diane, 07109 Sat Nov 22, 2008

Realtor told me to have an attorney review even w/o any word from the bank.He said offer is a valid contract bec. signed by the seller(owner).Do I need to put a deposit and is the signed offered contract binding and valid?

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Manny Rosa’s answer
Yes, all contracts in the State of NJ are subject to a 3 day attorney review period. The offer is valid and binding, it just has a contingency; it is similar to a mortgage contingency, or home inspection contingency. In this case, you have a third party approval contingency.
Web Reference: http://www.rosaagency.com
0 votes Thank Flag Link Fri Dec 18, 2009
Hello Diane,

Yes, have an atty review your contract. Offer is binding unless your attorney disapproves. If the contract calls for a deposit and your attorney approves the contract you will need to place a deposit where the contract calls for it.

Good luck!
2 votes Thank Flag Link Sat Nov 22, 2008
Diane: You need an attorney on this deal. The Bank has one and unless you're very clever, that makes the opposition more talent heavy than your team. (Sort of like not having any line backer in your football defense line-up.)

Now, I'm not an attorney so I can't tell you what you've got there but it seems confusing to me. If the sales contract is signed by both sides, that means, subject to any contingencies, it's a deal. If the bank has already signed the contract, it has approved of it, I GUESS. In NJ and only NJ as far as I know, there is a three day attorney review period, during which your attorney can void the deal and, if there is interest on your part, suggest provisions that make the deal acceptable. The other side can accept or continue to negotiate back and forth. YOU CANNOT VOID THE DEAL YOURSELF AFTER YOU SIGN IT. (Except, if the bank has not signed it, you can withdraw the offer. That's not voiding a contract, that's rescinding an offer.)

As far as deposits go, they should be spelled out in the contract, both as to amount and as to when due. If you fail to make them on time the contract becomes "voidable." Some deals are negligently managed and the provisions are not always done. There still can be a closing and you can take title but if they are not done, it opens a big escape door for whomever wishes to use it.

Since you have these questions and, for whatever reason(s,) have not asked your realtor them, I'd say, yet again, get an attorney. You are playing with major investments and costs. Don't get stuck behind the eight ball.

Enough sports references. Best of Luck
1 vote Thank Flag Link Sat Nov 22, 2008
Absolutely!, even more so with Short Sales etc.
0 votes Thank Flag Link Wed Apr 16, 2014
Yes, you always need attorney review. You have an option not to get an attorney in any transaction but I would not recommend it. What happens if you find something wrong in the home inspection? You need your attorney to negotiate price changes if there are damages to be repaired. You still need to put a deposit and it is a valid contract.
0 votes Thank Flag Link Thu Mar 20, 2014
It's been my experience that banks never adhere to any response request made by any buyer agent. They will respond when they are good and ready which is why a buyer agent must be aggressive to make sure it doesn't drag out. If you do put a response date into the agreement to a bank you could wind up hurting your buyer because your contract would be void and the bank will move on to the next buyer.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
Web Reference: http://www.reneeporsia.com
0 votes Thank Flag Link Sat Nov 29, 2008
Diane,

In NJ if contracts were not prepared by an attorney, there is a 3 day attorney review period. Find out who prepared the contracts and have your attorney review them. Generally in a "Subject to Bank Approval" contract I request a specific time frame for the bank to approve them or the contracts would be "null and void". This way you do not wait 3-4 months for approval.

Janet Larsen
Remax Connection
660 Woodbury-Glassboro Road
Sewell, NJ 08080
856-415-1210, Ext 321
Cell: 856-261-6910
Web Reference: http://www.njrealtorjan.com
0 votes Thank Flag Link Sat Nov 29, 2008
Hi Diane,

I would definitely have an attorney review your paperwork if that would make you feel better.

If the bank does not approve the contract, your deal will not move forward. Though the bank will require the seller to sign the agreement, it is the bank who will make the ultimate decision but since the owner still owns the home, they must sign the agreement. If this property is in New Jersey, an attorney must be involved anyway.

I never have my client's give a deposit on a property that is a short sale and conditioned on bank approval because the check can't be deposited until the offer is accepted so the check will just sit in the file until then. The bank could take quite a long time to make their decision and if the seller agent is not aggressive or doesn't know how to deal with the bank or the proper department it could take even longer so I have my client wait for the bank's approval. This can be a very complicated situation. One that I know much about.

Feel free to email me any further questions you may have and I would be happy to answer them.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
Web Reference: http://www.reneeporsia.com
0 votes Thank Flag Link Sat Nov 29, 2008
yes you will want to have it done right away, the contract is valid if signed by the buyer and seller even though it is subject to teh banks approval. your buyer broker should have insisted on a short sale disclosure that states what a short sale is and make the sale contingent upon teh lenders approval with time being of the essence. A short sale can take 3 to 6 months and if you dont want to be tied up this long as there is no guarantees that the bank will accept it, you need a way out. good luck with yoru purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Nov 22, 2008
Diane,

Yes the signed offer is a valid contract and must start attorney review. The signed offer is binding and valid should it withstand attorney review and if it does, you must proceed per the written contract and changes thereto with deposits, inspections, mortgage approvals, etc. even if you still have not heard anything from the bank. This was hopefully all explained to you by your agent when you were writing up your offer. I have many times seen buyers incur expenses and the bank deny their offer. Hopefully this does not happen to you and perhaps you should speak to your attorney regarding the terms since it is subject to the bank's approval.

Good luck.

Gina Chirico, Sales Associate
Prudential NJ Properties
973-715-1158 cell
973-992-6363 ext 116
GinaChirico@PruNewJersey.com
0 votes Thank Flag Link Sat Nov 22, 2008
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