Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago, 05/05/2020

User Stats

2,084
Posts
2,133
Votes
Andrew B.
  • Rockaway, NJ
2,133
Votes |
2,084
Posts

Sellers attorney refusing attorney review

Andrew B.
  • Rockaway, NJ
Posted

Just got an accepted offer in NJ and I’m faced with a weird situation.

My lawyer prepared the standard attorney review and sent minor contract changes to sellers attorney. Seller responded “Refused! House is sold as-is.”

We know house is sold as is, no inspection, etc. Our response indicated that we wanted him to respond to the contract changes, which had nothing to do with the house being as-is, so we could follow up with specific issues.

Through several emails and a phone call, we have come to the conclusion that this attorney is refusing to participate in any type of attorney review process. I have seen nothing to even indicate he opened the lawyers attachment.

I reviewed their website and I do not believe this firm even handles real estate transactions, he is a litigator, so I’m questioning if he even knows what an attorney review process is.

Has anybody ever dealt with something similar?

User Stats

268
Posts
250
Votes
Chris B.
  • Chandler, AZ
250
Votes |
268
Posts
Chris B.
  • Chandler, AZ
Replied

I'm no attorney, but I'd speak directly with the seller or seller's agent and explain the situation.  Sounds like its pretty simple and doesn't violate the as-is agreement.  Maybe the seller has some kind of econo-lawyer and the attorney is not obliged to put in any more time.  At minimum, it will inform the seller of the current holdup of the deal and allow them to take action.

User Stats

2,084
Posts
2,133
Votes
Andrew B.
  • Rockaway, NJ
2,133
Votes |
2,084
Posts
Andrew B.
  • Rockaway, NJ
Replied

@Chris Ma

My agent has reached out listing agent, who in turn spoke to the owner’s power of attorney. My agent said the listing agent has no idea why the lawyer is acting like this.

Vacasa logo
Vacasa
|
Sponsored
We do the work. You get the ROI. We do it all for your vacation rental. All—marketing, pricing, guest requests, housekeeping & more.

User Stats

23,418
Posts
13,507
Votes
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,507
Votes |
23,418
Posts
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

@? So what Were your attorney requested changes....and are they really necessary?

User Stats

2,084
Posts
2,133
Votes
Andrew B.
  • Rockaway, NJ
2,133
Votes |
2,084
Posts
Andrew B.
  • Rockaway, NJ
Replied

@Wayne Brooks

It’s a lot of little things, which I’m pretty sure are standard.

-agent commission cannot be attached as a lien

-timelines in the contract do not begin until attorney review ends

-seller agrees not to freeze any lines of credit

-property shall be vacant and broom clean

I would understand if he disagreed with some of them and asked us to remove those changes...but it doesn’t sound like the guy even read the changes.

User Stats

2,084
Posts
2,133
Votes
Andrew B.
  • Rockaway, NJ
2,133
Votes |
2,084
Posts
Andrew B.
  • Rockaway, NJ
Replied

@Wayne Brooks

I could probably get rid of most of them, cause the house needs work regardless. However, it’s just so strange the way this lawyer is handling it. It feels like he is trying to litigate and “win” something.

User Stats

23,418
Posts
13,507
Votes
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,507
Votes |
23,418
Posts
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

@Andrew B.

I don’t get the “seller not freezing any lines of credit”....unless this is some sub2 deal, it’s irrelevant, as that gets gets paid off/closed. 
the agent commission thing seems irrelevant as well...since it gets paid from closing. . 
The rest should be already be in the standard contract. 
I personally, would just eliminate all that and move forward.....it seems like Your attorney is causing unnecessary problems, as some do. 

User Stats

2,084
Posts
2,133
Votes
Andrew B.
  • Rockaway, NJ
2,133
Votes |
2,084
Posts
Andrew B.
  • Rockaway, NJ
Replied

@Wayne Brooks

I know that’s an option, but it’s very strange that this lawyer refuses to even read and respond to the content of my lawyers emails. Around here (from my understanding) it’s standard operating procedure to clean up the contract. That’s how my other two purchases went and there was no pushback from the sellers on anything.

User Stats

5,409
Posts
2,571
Votes
David M.
  • Morris County, NJ
2,571
Votes |
5,409
Posts
David M.
  • Morris County, NJ
Replied

@Andrew B.

You are right. Sounds like the sellers attorney is total unfamiliar with real estate transactions. You’ve tried speaking listing agent and seller, huh? Sounds you need to walk away from this deal since no good way to get around sellers attorney. Maybe just keep trying with the listing agent and seller. What you mentioned is plain Jane boiler plate

Account Closed
  • Specialist
  • OverTheRainbow
909
Votes |
607
Posts
Account Closed
  • Specialist
  • OverTheRainbow
Replied
Originally posted by @Andrew B.:

Just got an accepted offer in NJ and I’m faced with a weird situation.

My lawyer prepared the standard attorney review and sent minor contract changes to sellers attorney. Seller responded “Refused! House is sold as-is.”

We know house is sold as is, no inspection, etc. Our response indicated that we wanted him to respond to the contract changes, which had nothing to do with the house being as-is, so we could follow up with specific issues.

Through several emails and a phone call, we have come to the conclusion that this attorney is refusing to participate in any type of attorney review process. I have seen nothing to even indicate he opened the lawyers attachment.

I reviewed their website and I do not believe this firm even handles real estate transactions, he is a litigator, so I’m questioning if he even knows what an attorney review process is.

Has anybody ever dealt with something similar?

 The seller's attorney has already made it clear that it is sold "as-is". You are trying to make changes (to the contract) so that means things are no longer "as-is". He wants to know why you are wasting his time (time he isn't getting paid for.) It's clear to me that "as-is" means it includes the wording on the contract as well. Either agree or walk. Those are your two choices.

User Stats

23,418
Posts
13,507
Votes
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,507
Votes |
23,418
Posts
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

@Account Closed Nope....”as is” refers strictly to the seller not agreeing to do any repairs to the house. 

User Stats

6,188
Posts
7,051
Votes
Jonathan Greene
Professional Services
Pro Member
  • Real Estate Consultant
  • Mendham, NJ
7,051
Votes |
6,188
Posts
Jonathan Greene
Professional Services
Pro Member
  • Real Estate Consultant
  • Mendham, NJ
ModeratorReplied

There is some horrendous, non-specific to NJ advice in here. NJ is an attorney state and attorney review must be conducted and completed for on-market and off-market transactions, if both parties are represented and haven't waived. An attorney can not refuse attorney review. They must respond and it is common practice that the boilerplate parts of the standard NJ RE contract get adjusted in review like for time is of the essence. What you are experiencing happens when a seller (or buyer) hires a friend who is not a RE attorney because they don't understand the give and take in the process.

Taking a property as-is has nothing to do with completing attorney review. If all of your requests were about inspections and repairs, they may have a point, but they would still respond denying. Keep up with the agent and see if the agent can get them to replace the attorney with a RE attorney. It's not in the seller's best interests to have an attorney who doesn't know what they are doing.

business profile image
Zen and the Art of Real Estate Investing
5.0 stars
7 Reviews
Account Closed
  • Specialist
  • OverTheRainbow
909
Votes |
607
Posts
Account Closed
  • Specialist
  • OverTheRainbow
Replied
Originally posted by @Wayne Brooks:

@Account Closed Nope....”as is” refers strictly to the seller not agreeing to do any repairs to the house.

 Are you licensed in NJ where the property is located?  By the way, are you an attorney? Seems the two attorneys probably know the law in NJ. Just guessing.

CLOSED Title logo
CLOSED Title
|
Sponsored
CLOSED Title is the Investor Friendly Title Company CLOSED Title, founded by real estate investors. Double closings, assignments, we do it all.
Account Closed
  • Specialist
  • OverTheRainbow
909
Votes |
607
Posts
Account Closed
  • Specialist
  • OverTheRainbow
Replied
Originally posted by @Andrew B.:

Just got an accepted offer in NJ and I’m faced with a weird situation.

My lawyer prepared the standard attorney review and sent minor contract changes to sellers attorney. Seller responded “Refused! House is sold as-is.”

We know house is sold as is, no inspection, etc. Our response indicated that we wanted him to respond to the contract changes, which had nothing to do with the house being as-is, so we could follow up with specific issues.

Through several emails and a phone call, we have come to the conclusion that this attorney is refusing to participate in any type of attorney review process. I have seen nothing to even indicate he opened the lawyers attachment.

I reviewed their website and I do not believe this firm even handles real estate transactions, he is a litigator, so I’m questioning if he even knows what an attorney review process is.

Has anybody ever dealt with something similar?

You said: "I reviewed their website and I do not believe this firm even handles
real estate transactions, he is a litigator, so I’m questioning if he
even knows what an attorney review process is."


Attorney's are in it to get paid. If a review process isn't included in his agreement with his client or he won't get paid for taking the time, he won't do one. All attorneys have a colleague or two to turn to for each specialty under law if they have a question and can ask "what is an attorney review process", tho' it would be comical for an attorney to not know the answer to that one. If that attorney feels they can't properly represent their client they can refer it on to a selected colleague who can. And they have the Bar to refer to for clarification.

Do not assume that because an attorney refuses to do things the way you think they should be done that the attorney is ignorant of the process. Since he practices law full time, he may know a little more than you know about law and the issue at hand.

But, the real point is why waste your time if they are not cooperating? Will you be initiating a lawsuit against an attorney because he won't review an offer?

User Stats

2,383
Posts
951
Votes
Odie Ayaga
  • Specialist
  • Delran, NJ
951
Votes |
2,383
Posts
Odie Ayaga
  • Specialist
  • Delran, NJ
Replied

@Andrew B. I've been through a number of real estate transactions in NJ and @Jonathan Greene's depiction is accurate. "As-is" has to do with the state of the property not the contract that governs the sale. Attorney review and changes to the standard contract during it are common and typically understood by NJ attorneys. I'd be more concerned if the very first step of the sale process is already proving problematic from the seller's side that you may encounter other problems as you proceed down the road. 

Account Closed
  • Specialist
  • OverTheRainbow
909
Votes |
607
Posts
Account Closed
  • Specialist
  • OverTheRainbow
Replied
Originally posted by @Odie Ayaga:

@Andrew B. I've been through a number of real estate transactions in NJ and @Jonathan Greene's depiction is accurate. "As-is" has to do with the state of the property not the contract that governs the sale. Attorney review and changes to the standard contract during it are common and typically understood by NJ attorneys. I'd be more concerned if the very first step of the sale process is already proving problematic from the seller's side that you may encounter other problems as you proceed down the road. 

What you seem to be overlooking is that when one demands "property shall be vacant and broom clean" then it is no longer "as-is". That is a change of the contract.

But, the real question is why waste the effort on a property that they don' want to make concessions on or respond to your offer?

User Stats

2,383
Posts
951
Votes
Odie Ayaga
  • Specialist
  • Delran, NJ
951
Votes |
2,383
Posts
Odie Ayaga
  • Specialist
  • Delran, NJ
Replied

@Account Closed "As-Is" is the way the property is listed. There's no guarantee it's in the contract. I've seen repairs made to properties even when a property is listed "As-Is". Nonetheless, the seller's attorney could specifically respond for that line to be taken out and agree to the other changes.  

It's possible as OP stated that the seller obtained an attorney that doesn't specialize in real estate and may be doing the job on the cheap rather than getting an attorney who specializes in the area and would be paid in line with their specialization. At the end of the day it's all speculation. Whatever the reason, as we've both stated that's less than a great sign for the sale and I'd caution about proceeding.

User Stats

2,367
Posts
2,244
Votes
Jonathan R McLaughlin
Pro Member
  • Rental Property Investor
  • Boston, Massachusetts (MA)
2,244
Votes |
2,367
Posts
Jonathan R McLaughlin
Pro Member
  • Rental Property Investor
  • Boston, Massachusetts (MA)
Replied

@Account Closed not to make you paranoid but another possibility is the lawyer knows something is shady about the sale and doesn't want anything to do with it. 

  • Jonathan R McLaughlin
  • Account Closed
    • Specialist
    • OverTheRainbow
    909
    Votes |
    607
    Posts
    Account Closed
    • Specialist
    • OverTheRainbow
    Replied
    Originally posted by @Jonathan R McLaughlin:

    @Account Closed not to make you paranoid but another possibility is the lawyer knows something is shady about the sale and doesn't want anything to do with it.

     I agree, that is why I said "Since he practices law full time, he may know a little more than you know about law and the issue at hand." four posts up. No matter, we're in agreement. Have a good day. ;-)

    User Stats

    2,367
    Posts
    2,244
    Votes
    Jonathan R McLaughlin
    Pro Member
    • Rental Property Investor
    • Boston, Massachusetts (MA)
    2,244
    Votes |
    2,367
    Posts
    Jonathan R McLaughlin
    Pro Member
    • Rental Property Investor
    • Boston, Massachusetts (MA)
    Replied

    meant to tag Andrew B there! 

  • Jonathan R McLaughlin