has not entered under contract phase just yet. If the seller's lawyer does not respond after the 3 day period, what happens? Can the buyer still back out of the sale without any penalties(i.e. losing their deposit, etc)?
No, once both buyer and seller sign it, then the 3 day closck starts, if an attorney fails to respond within the 3 days then the period expires and the contract is in force. The only way the buyer could back out is if there is a contingincy such as home inspection or financing. then if they gove notice within teh dates specified on the contract , they may.
Attorney review starts once both parties have signed the document and you are in possision of this document. If the attorney does not respond to the contract to dissapprove of the contents, as I understand it, the contract is binding and your are "Under Contract"
Of course you should have this verified by your attorney.
After 3 business days without changes from the lawyers, the contract becomes binding as written. Like any contract, it can be canceled if BOTH parties agree to cancel it. In actuality, lawyers will probably negotiate this for the parties.
Joan Prout, MBA
RE/MAX Villa REALTORS
306 Grove Street
Jersey City, NJ 07302
check with your attorney, this is clearly legal advice you are seeking. In practicality though it is not easy to force a buyer to buy or seller to sell if they dont want to. There are many contingencies in contracts which can give buyer an out.