Buying a home in New Jersey is both a real estate transaction and a legal process.   An experienced real estate attorney can help Buyers navigate this process and ensure that they meet their contractual and legal obligations. 

Realtors in New Jersey use a standard form Contract.  Once the Buyer has selected a home they would like to purchase, the Buyers present their “offer” on the form Contract.  If the Sellers agree to the terms, the Sellers accept the offer by signing the form Contract.  If the Buyers have not retained an attorney prior to this point, now is the time to do so.  The realtors will forward a copy of the signed Contract to the parties' attorneys. 

Once the Contract is fully executed, the parties have three business days to make changes to it.  This is known as the Attorney Review period.  If the Buyer and Seller do not make any changes to the Contract during within this three-day period, the Contract, as written, becomes legally binding. 

The Buyers' attorney usually sends the first review letter, disapproving the Contract as written, and requesting changes to it.  This disapproval stops the three-day attorney review period, and the parties can negotiate changes without a deadline, until an agreement is reached.  However, during this negotiation period, either party is free to cancel the Contract and move on. 

After attorney review is concluded, which means the parties have agreed to the contract terms, the Buyers typically conduct home inspections.  The Buyers have a right to perform inspections, including, but not limited to, termite and pest structural, mechanical, safety, septic, and radon inspections.  Buyers should also perform oil tank sweeps, to detect underground fuel storage tanks, chimney inspections, and sewer line inspections (if applicable).  The home inspections will be coordinated through the realtors. 

If the inspections disclose defects or deficiencies, the Buyer's attorney will ask the Seller to address them before closing.   The attorney for the Seller will respond to the Buyer's inspection requests, and the attorneys will help their clients negotiate a resolution the inspection issues.  If the parties cannot agree on remediating any issues, the parties may cancel the Contract. 

If the home is serviced by a private well, the Buyer and Seller must comply with the New Jersey Private Well Testing Act.   The Seller typically pays for the well testing, although this may be negotiated during attorney review.  The contract will determine whether the Seller needs to remediate any issues, but both parties must review the test results prior to the closing the of title.  Some municipalities require a separate well certification.

During the inspection review period, Buyers should also contact the municipal clerk in the town in the town where they are buying, or visit the town's website to obtain information regarding the property.  The local municipality, including the building department, tax department, and/or health department will also have documentation related to the history of the property, particularly as it pertains to any renovations to the home and open permits, current taxes and pending assessments and, if applicable, information regarding the septic system.  The Buyer's realtor, or the Buyer's attorney, may submit an OPRA request on the Buyer's behalf to obtain this information.   If the Buyer has any plans to renovate or expand the home, or otherwise modify the property, they should discuss that with the municipality, as well as advise their attorney prior to the conclusion of attorney review.

After the home inspections are concluded, the Buyer's attorney will order a title search and, if required, a survey.  The Buyers are responsible at closing for payment of the title search, as well as the premium for title insurance, and any survey costs.

The Buyer's attorney will use the title company, or a separate settlement company, to serve as the settlement agent.  The title company will prepare a closing statement which summarizes the financial aspects of the transaction and advises the Buyer about how much money they will need to purchase the home.  Any money due must be wired to the title company or be paid by certified funds.  Personal checks cannot be accepted.  The lender, if any, will send their funds directly to the title company.  The title company may charge an additional fee for their settlement services.

If the Buyer experiences any delays during the home buying process, they should notify their attorney in advance of the deadlines.  Once the deadlines pass, the Buyer's rights may be affected.

Buying a home involves costs which the Buyer must pay.  In addition to the lender's fees, if applicable, these fees include homeowners' insurance, title company charges, including any title company charges that may relate to its role as settlement agent, bank charges, survey fees, recording fees, realtors' fees, document preparation, wire fees, and any other charges related to the purchase of the home.While the parties make every effort to close on the date set forth in the Contract, the date is only an estimated date.  The Buyers' lender and the title company often dictate when the final closing date is to happen. 

The Buyers will do a walk-through inspection of the home prior to closing, typically the morning of the closing or the evening before.  The realtors will schedule the walk-through, and the home should be empty and in broom-swept condition.  If there are any issues with the home, the Buyers should notify their attorney immediately. 

Closings have changed since Covid.  The Buyers, along with their attorney and the title company, attend the closing in person.  The Sellers typically sign the conveyance documents prior to the closing, and they are sent to the Buyer's attorney or title company.  The settlement statement is an itemized document which details and accounts for every dollar in in the transaction for both Seller and Buyer.  The Sellers usually sign and submit the settlement statement via e-mail.     

Buying a home is a complicated process, but an experienced real estate attorney can help you from Contract to Closing.  Lavery, Selvaggi & Cohen, has completed thousands of real estate closings and we would welcome the opportunity to assist you with buying a home.