New Jersey Real Estate Contract: Different Types and Key Terms to Include
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What is a New Jersey Real Estate Contract?
A New Jersey real estate contract is a legally binding agreement between two parties, a buyer and a seller, for the sale and purchase of a piece of real property. The contract outlines the terms and conditions of the transaction, including the purchase price, financing terms, closing date, and any contingencies that must be met before the sale can be completed.
A real estate contract will also specify the responsibilities of each party during the transaction, like the buyer's responsibility to obtain financing and the seller's responsibility to transfer the title to the property.
Common New Jersey Real Estate Contracts
The most common real estate contract used in New Jersey is the New Jersey Association of Realtors contract. It is used by realtors who belong to the association for the sale and purchase of residential real estate. In New Jersey, a real estate contract becomes legally binding after three business days.
If you are not buying or selling residential property, you will need to use a different real estate contract. Other common contracts include:
- Commercial real estate contract . Used when buying or selling commercial property that is zoned for business operations.
- Real estate assignment contract. Used when purchasing investment properties because this agreement allows the buyer to assign the contract to a second buyer.
- Lease agreement. Also called a rental agreement, this contract is used when a property owner wants to rent their property to a tenant.
4 Essential Elements of a New Jersey Real Estate Contract
The four essential elements of a contract as required by New Jersey law are:
- There must be an agreement between the parties to enter the contract which is usually shown through an offer and acceptance of the offer.
- The parties must exchange items of value. In a real estate contract, consideration is usually the exchange of money for the property.
- The parties entering the contract must have legal capacity to enter the agreement. This means the parties must be of sound mind, cannot be under the influence of alcohol or drugs, and cannot be minors.
- Contracts must be of legal purpose and cannot break the law or encourage either party to break the law.
If a real estate contract in New Jersey is missing any of these essential elements, it will be ruled void and unenforceable.
What Should Be Included in a New Jersey Real Estate Contract?
The purpose of a real estate contract is to facilitate the sale of property and protect the interests of both parties. To accomplish these goals, the contract must contain specific information.
The following terms are usually negotiated and included in a real estate contract in New Jersey:
- Party information. The names and addresses of the parties involved in the transaction, including the buyer, seller, and any agents or brokers involved.
- Property description. The legal description of the property including the full address.
- Purchase price. The agreed upon purchase price for the property.
- Contingencies. Conditions that must be met before the sale can be completed like a home inspection or securing financing.
- Disclosures. Warranties or representations required by New Jersey state law made by the seller regarding the condition of the property.
- Closing date. The date on which the sale will be completed.
- Signatures. The signature of the buyer, seller, and any agents or brokers involved in the transaction.
Depending on the parties and the property, additional terms may need to be added. It is always recommended to consult with a realtor or real estate attorney before signing a real estate contract.
Frequently Asked Questions
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Meet some of our New Jersey Real Estate Contract Lawyers
Dimitry K.
Prior to becoming an attorney, Mr. Dimitry Alexander Kaplun had been involved with many industries and professions, and helped manage, create, and advise a wide range of businesses around the world. While at Drexel University as a computer science major, he became an NASD licensed representative and was employed by Fortune 100 insurance companies, including Prudential, AIG, and NY Life, first specializing in financial investments for life and annuity products, and then expanding his expertise to mutual finds, stocks, environmental insurance, and real property. Due to his technical expertise and a clear understanding of business rules, he was soon brought on board to help assist those companies with coding their interface for the Y2K switch. Soon after switching his major to business, Mr. Kaplun worked for a telecommunication service company first in quality assurance and then as a database programmer and developer, with sole and exclusive responsibilities for a multitude of warehouses located around the continental United States. Working on-site and from the company headquarters, he was responsible for streamlining processes for internal departments while fulfilling the quickly changing needs to the company clients, most notably Verizon Wireless. Mr. Kaplun opened his practice in 2008. Prior to starting his practice, he worked as a paralegal instructor for Prism Career Institute, creating the lesson plans for the whole program and focusing his instruction on substantive and procedural laws for general practitioners. Mr. Kaplun also worked as an associate for The Law Office of Keith Owen Campbell PC, focusing on Family and Matrimonial Law, and assisted the law firm of Jeffrey Neu and Associates in securities research as well as various contact and sales agreements, mainly online reseller agreements. He currently focuses his energy on representing individuals and companies in liability insulation, contracts and business agreements, and other legal concerns that crop up in the regular operation of doing business.
Veronica B.
August 27, 2023
Veronica B.
I am fully licensed attorney in New Jersey & Pennsylvania. Practicing law for 29+ yrs, I've tried over civil 120 jury trials; as Plaintiff & Defendant. My success rate is 85%. People need a practical, common sense approach to solving legal issues. I have assisted in establishing 226 businesses in over 22 countries, my experience runs the gamut of reviewing commercial contracts for completeness & legal protection for the parties. I have procured & drafted contracts & agreements for municipalities, charitable organizations, start ups & more. I manage 3 LLC's in Florida. Wills & Estates is another practice area. The best way to get to know me & my legal services is to reach out & start a conversation.
September 15, 2023
Christopher X.
Recent law school graduate with an undergraduate degree in biomedical engineering degree passionate about the intersectionality of law and life sciences. Admitted to New York and New Jersey Bar. Ability to add value in a pharmaceutical or biotechnology entity and provide a unique perspective to multiple disciplines.
Ian L.
I am an attorney admitted in New York and New Jersey with 21 years of law firm and in-house, complex litigation, appellate, and counseling experience. I am admitted in the New York U.S. District Courts and several U.S. Courts of Appeals. I have handled white collar litigation and other complex litigation matters. I have extensive insurance coverage, antitrust, contract, and internal investigations experience, and securities law and financial-services litigation experience. I was a candidate for the U.S. Senate in New Jersey 2011.
December 6, 2023
Kenneth W.
Committed to a career in advocacy as an attorney, educator, and consultant, I specialize in education, family, personal injury, and criminal law. While at John Rue & Associates LLC, I led litigation and alternative dispute resolution, handling complex class-action lawsuits involving discrimination, privacy, administrative, and education law. I also directed conflict resolution through mediation, reducing costs and securing favorable client outcomes. While in law school, I served as a law clerk at Wilson Elser, excelling in crafting answers, overseeing discovery, attending depositions, and conducting exhaustive legal research. My responsibilities extended to preparing deposition summaries, assisting in motion practice, drafting persuasive briefs, evaluating cases, and contributing to trial preparations. I thrived in managing client affairs, supporting colleagues, and ensuring compliance with relevant laws. I am eager to explore opportunities to contribute my skills and passion to impactful projects aligned with client needs. I look forward to discussing opportunities and demonstrating how my qualifications will meet client needs.
Ann D.
Ann R. Dougherty, Esquire practices in both Pennsylvania and New Jersey with over 25 years of experience and has taught legal writing at the Delaware Law School of Widener University. Ann’s experience includes general liability, commercial property and bad faith insurance coverage litigation. Ann has successfully represented corporations in declaratory judgment matters concerning environmental and asbestos exposure, handled excess recoveries, comprehensive claim reviews and negotiated cost sharing agreements. She has also represented religious organizations including risk management strategies. In addition to practicing law, Ann also teaches introductory Philosophy and Ethics courses. Ann is a member of the Philanthropic Educational Organization for Women and the Daughters of the American Revolution. She has served on the Boards of the American Lung Association of the Mid-Atlantic for Delaware and the Wilmington Ballet Academy.
Faye C.
Practical, efficient and creative solutions for businesses and individuals has been my passion for over a decade. We work with individuals and families to plan their legacies. Estate planning is more than some pieces of paper - it is a gift to your family. From every changing tax laws to questions about probate vs non-probate property, I thrive on counseling others and providing peace of mind. The same mindset goes into working with solopreneurs, entrepreneurs and executives for variety of businesses, addressing their most pressing issues on any given day. From inception to contract drafting to succession planning, we thrive on working with those with lots of ideas to devise and implement strategies to bring those ideas to fruition, foreseeing and anticipating potential pitfalls as well as areas of potential growth.
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Real Estate
Real Estate Contract
Georgia
WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233
SON AND EX
Meghan T.
Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas
Real Estate
Real Estate Contract
New York
Can you purchase or refinance under a land contract?
I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.
Jane C.
I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.
Real Estate
Real Estate Contract
Georgia
How many years does a quick claim become effective?s
Number of years for quick claim to be effect ive
Meghan T.
A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas
Real Estate
Real Estate Contract
Illinois
what is better to buy land or rent for construction in US?
we are a construction company from Ukraine, we are planning to build a cottage town in the USA
T. Phillip B.
I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.
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