Contract Cancelled? What the...
Last week I received the following from a reputable midsize firm.
Dear Mr. Meikle:
"Please be advised that we represent the buyers in the above transaction. We have reviewed the Contract of Sale. Below are changes that would make the contract acceptable to my client."
Under New Jersey’s Residential Real Estate laws, the attorney’s proposed changes would actually be considered meaningless.
An Attorney must Cancel or, to use the Supreme Court’s own language, “Disapprove” the contract before any modifications can be made. Otherwise, the broker prepared contract controls and any proposed changes are unenforceable.
So, when you see the words "cancelled" or "disapproved" at the beginning of my review letter, don't panic. Remember, any changes to the contract, even minor ones, first require the cancellation of the broker prepared contract.