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

Many Sellers work with licensed real estate brokers to sell their homes.  Sellers and realtors contract with each other and agree on the terms of their arrangement.  The length of the Seller's realtor relationship, usually at least six months, scope (geographic areas), and the commission are important terms.   All of these terms are negotiable under New Jersey law. 

Realtors in New Jersey use a standard form Contract.  Typically, the Buyers present their “offer” on the form Contract and, if the Sellers agree to the terms, the Sellers accept the offer by signing the form Contract.  If the Sellers 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.  The home inspections will be coordinated through the Realtors. 

If the inspections disclose defects or deficiencies, the Buyers will ask the Seller to address them before closing.   The attorney for the Seller will advise whether they are lawfully obligated to correct or remediate any condition cited by the Buyers and will help 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.

Sellers also are required to obtain a smoke and carbon monoxide certification before selling the home.  Some municipalities may further require a Seller to obtain a separate Certificate of Occupancy.

The Buyers' attorney will order a title search on the property.  The Buyers' attorney will review the title search to determine if there are any title issues.  If so, these will be brought to the attention of the Seller who must address them before closing.   Generally, the Seller's attorney will work with the Seller to resolve them.

Selling a home involves costs which the Seller must pay.  These include legal fees, the realty transfer fee, the New Jersey mansion tax, if applicable (for properties over $1 million), realtor's commissions, and any mortgage or home equity or line of credit balances.  If the Sellers are moving out of State after selling their home, they will also be responsible for paying an Estimated Gross Income Tax payment, commonly known as the “Exit Tax.”  There will be adjustments for property taxes, homeowners' association fees, and municipal fees such as sewer and trash charges.  The Seller will be reimbursed for any prepaid charges.  These charges and all other costs will be set forth in the settlement statement which is negotiated by the attorneys for both parties, the lender and the title company. 

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. 

Closings have changed since Covid.  All parties no longer attend 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 settlement statement may be signed and submitted via e-mail.      

Sellers should arrange to leave their keys and garage door openers with their realtor or in the house.  When the closing is complete, Sellers should contact their insurance agent to cancel their homeowner's insurance and request a refund for any unexpired premium.

Selling a home can be 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 selling your home.