When you sell or purchase a home, your realtor will usually present you with a widely used form contract. The realtor will have the ability to customize that form to fit your needs. The contract will typically provide that each party's attorney will have 5 business days to (1) approve the contract; (2) reject the contract; or (3) negotiate modifications to the contract.
During this 5 day period, the contract is contingent upon attorney approval. If your attorney fails to reject or seek to modify the contract within the 5 day period, the contract will automatically be binding upon you after the 5 day period expires.
When your attorney sends a letter requesting modification of the contract, he or she will include language in the letter that states that the proposed modifications do or do not represent a counter-offer. If the modifications do represent a counter-offer, the other side will have an opportunity to negate the contract by rejecting the modifications. If the modifications do not represent a counter-offer, rejecting the modifications will not nullify the contract.
Often, the parties cannot come to an agreement on the all of the contract modifications within the 5 day review period. In this case, the review period is typically extended by mutual agreement.
A good attorney will be sure to staunchly protect his client's interests while, at the same time, working to achieve a meeting of the minds between the parties so as to prevent the deal from falling through.
O'Flaherty Law is happy to meet with you by phone or at our office locations in: