Francesca Patrizio, Broker Sales Associate,, ePro, SRES
732.606.2931 (Direct/Cell 24/7)
Quick question - in Chicago, are both parties bound to the contract during your attorney review? What could cause the deal to die during that time period? (I had one die basically because the attorneys didn't get along!)
Here, as was mentioned below, either party can cancel the sale during the att. review without the need for a specific reason - hence, for a normal sale, most buyers wouldn't want to pay for an inspection if the other side could kill the deal.
Here, they usually have 10 days following the review to complete their inspections. Any negotiations for inspection items happen at that time.
In the Chicago area, we too, start with signed contracts... but our signed contracts have a built-in 5-day period for attorney review and inspection which run concurrently. So the inspection is done in that initial 5-days, and at the end, the attorney weighs in and raises any issues that were uncovered during inspection.
So for Chicago area buyers, the answer would be "before attorney review is complete" or "during attorney review". Clearly in New Jersey, that answer wouldn't be correct.
In NY, where you are, it is done differently, so your "advice" might be confusing to a consumer from NJ who is reading this .
Guest, one of the main reasons for not doing the inspection during attorney review is, as Jeanne mentioned, ....is..... why spend so much money on an inspection if the sellers have the ability (as do you) to cancel the deal during the review? Either party can potentially walk away during that time period..
One other correction to what was said here - if "anything detrimental" is discovered (contract verbiage references "structural" issues), generally the seller is given the opportunity to make the repairs or offer a credit at closing for those repair items
Unless your contract specifically states it, you may not just be able to "walk away" without first offering that option to the sellers.
It's always the best advice to...........Read your contract, along with any changes your attorney made during the review, and discuss any questions you might have with your attorney!
Good luck to you,
Unwavering Commitment to Service, Unsurpassed Results
Don't foget Radon, Well and Septic tests if the property has them. ~ Tara
Illinois law allows for cancellation, during attorney review, by either side, for any reasonable reason other than price. But the interesting part is that we don't have to divulge what that 'reasonable reason' is.
Yes, the deal could blow-up based on attorney review, but it's fairly rare. And since Inspection runs concurrently, at least you know once A/I (Attorney Review/Inspection) is over, that the only obstacle remaining is mortgage commitment. It's rare, although not unheard of, for cancellation based on attorney review, without some real issue that the parties can't agree upon.
Performing the inspection after attorney review (as is most common in NJ) means the seller can no longer cancel the agreement without cause. As such your money is not wasted. On the flip side, should a material defect be discovered during the inspection and the seller remedies the situation, you can't cancel the contract (generally). While this makes sense, you may no longer be as pleased buying the house.
If the inspection is done prior to the completion of attorney review, you have the right to cancel the contract for the slightest issue without giving the seller the opportunity to remedy. That is why many attorneys will not allow their sellers to allow for inspections prior to the completion of attorney review. The only negative to performing the inspection early is the waste of your inspection fee if the seller cancels the contract during attorney review.
Some examples of reasons to perform the inspection early include:
Short sale that may take months for review and acceptance, tying you up in a property that may have issues.
Good verbal/written understanding with the seller looking for a very quick closing.
There are 2 or 3 properties that you are interested in buying and inspection may aid in that decision.
These are just some examples that I have been involved with and there may be more. Feel free to contact me for more information. I don't make money for referrals, just my inspections.
Mid Jersey Inspections
NJ Home Inspector Lic. #076900