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The New Jersey Contract Sale form, specifically designed for real estate transactions without a broker, outlines the essential terms agreed upon between the seller and the buyer. This contract commences with a mutual agreement to sell and purchase a specified property, all fully detailed by its address, lot, and block numbers as per local tax maps. Included in the agreement are various items, such as appliances and fixtures, alongside a clear delineation of personal property that the seller will retain. The contract also sets forth the sales price, which entails not only the total purchase price but also outlines how it will be financed, whether through cash, a new loan, seller financing, or the assumption of an existing loan. Additionally, provisions regarding earnest money deposits are included, ensuring a level of commitment from the buyer. There is a section dedicated to the property’s condition, mandating that the buyer accepts the property as is, while also allowing for inspections. Aspects such as closing procedures, title conveyance, and responsibilities for closing costs further clarify what each party can expect as the transaction progresses. By covering all these elements, the form provides a structured framework to ensure that both the buyer and the seller are protected and well-informed throughout the sale process.

Nj Contract Sale Example

CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE

(NO BROKER)

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,

 

 

 

 

 

 

,“Seller” whether one or more, and

 

 

 

 

 

 

,“Buyer” whether one or more,

 

 

do hereby covenant, contract and agree as follows:

 

 

 

 

 

 

1.

AGREEMENT TO SALE AND PURCHASE:

Seller agrees to sell, and Buyer agrees to buy from Seller the

 

property described as follows: (complete adequately to identify property)

 

 

 

 

 

Address:

 

 

 

 

 

 

 

 

Shown on the municipal tax map of

 

County, New Jersey, as Lot

, Block

.

 

 

 

 

 

 

 

 

 

 

 

Legal Description (or see attached exhibit):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As described in attached Exhibit.

Together with the following items, if any: (Strike items to be retained by Seller) curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment, permanently installed heating and air-conditioning units, window air-conditioning units, built-in security and fire detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in fireplace screens, artificial fireplace logs and all other property owned by Seller and attached to the above described real property except the following property which is not included (list items not included):

All property sold by this contract is called the "Property."

2.SALES PRICE: The parties agree to the following sales price:

 

Amount

Amount

 

Purchase Price

$

 

 

Earnest Money

 

$

$

New Loan

 

$

$

Assumption of Loan

 

$

 

Seller Financing

 

$

 

Cash at Closing

 

 

 

Total ( both columns should be equal)

$

 

 

Both columns should be an equal amount.

 

 

 

If the unpaid principal balance(s) of any assumed loan(s), if any, as of the Closing Date varies from the loan balance(s) stated above, the cash payable at closing will be adjusted by the amount of any variance.

3.FINANCING: The following provisions apply with respect to financing:

Buyer Initials ______ _______

- 1 -

Seller Initials _______ _______

 

 

 

CASH SALE: This contract is not contingent on financing.

OWNER FINANCING: Seller agrees to finance

 

 

 

 

dollars of the purchase price pursuant

to a promissory note from Buyer to Seller of $

 

, bearing

 

 

% interest per annum, payable

 

 

 

 

 

 

 

 

 

 

 

over a term of

 

years with even monthly payments, secured by a deed of trust or mortgage lien

with the first payment to begin on the

 

day of

 

, 20

 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEW LOAN OR ASSUMPTION: This contract is contingent on Buyer obtaining financing. Within

days after the effective date of this contract Buyer shall apply for all financing or noteholder's approval of any assumption and make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval will be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial requirements (those items relating to Buyer's net worth, income and

creditworthiness). If financing or assumption approval is not obtained within days after the effective date hereof, this contract will terminate and the earnest money will be refunded to Buyer. If Buyer intends to obtain a new loan, the loan will be of the following type:

Conventional

VA

FHA

Other:

The following provisions apply if a new loan is to be obtained:

FHA. It is expressly agreed that notwithstanding any other provisions of this contract, the Purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the Purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement lender setting forth the appraised value of the Property of

not less than $. The Purchaser (Buyer) shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. The Purchaser (Buyer) should satisfy himself/herself that the price and condition of the Property are acceptable.

VA. If Buyer is to pay the purchase price by obtaining a new VA-guaranteed loan: It is agreed that, notwithstanding any other provisions of this contract, Buyer shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the Property described herein, if the contract purchase price or cost exceeds the reasonable value of the Property established by the Veterans Administration. Buyer shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Veterans Administration.

Existing Loan Review. If an existing loan is not to be released at closing, Seller shall provide copies of the loan documents (including note, deed of trust or mortgage, modifications) to Buyer within

calendar days from acceptance of this contract. This contract is conditional upon Buyer's review and approval of the provisions of such loan documents. Buyer consents to the provisions of such loan

documents if no written objection is received by Seller from Buyer withincalendar days from Buyer's receipt of such documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Buyer's obtaining such approval without change in the terms of such loan, except as may be agreed by Buyer. If lender's approval is not obtained on or before

 

 

 

,

 

this contract shall be terminated on such date. The

Seller

shall

hall not, be released from liability under such existing loan. If Seller is to be released and

release approval is not obtained, Seller may nevertheless elect to proceed to closing, or terminate this agreement in the sole discretion of Seller.

Credit Information. If Buyer is to pay all or part of the purchase price by executing a promissory note in

Buyer Initials ______ _______

- 2 -

Seller Initials _______ _______

 

 

 

favor of Seller or if an existing loan is not to be released at closing, this contract is conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall be at Seller's sole and

absolute discretion. In such case: (l) Buyer shall supply to Seller on or before

 

,

,at, Buyer's expense, information and documents concerning Buyer's financial, employment and credit condition; (2) Buyer consents that Seller may verify Buyer's financial ability and creditworthiness; (3) any such information and documents received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller's interest in this transaction; (4) if Seller does

 

not provide written notice of Seller's disapproval to Buyer on or before

,

,

 

then Seller waives this condition.

 

 

 

 

 

 

4.

EARNEST MONEY: Buyer shall deposit $

 

as earnest money with

 

 

 

 

 

upon execution of this contract by both parties.

 

 

 

 

 

 

5.PROPERTY CONDITION:

OFF-SITE CONDITIONS: PURSUANT TO THE NEW RESIDENTIAL CONSTRUCTION OFF-SITE CONDITIONS DISCLOSURE ACT, P.L.1995, C. 253, THE CLERKS OF MUNICIPALITIES IN NEW JERSEY MAINTAIN LISTS OF OFF-SITE CONDITIONS WHICH MAY AFFECT THE VALUE OF RESIDENTIAL PROPERTIES IN THE VICINITY OF THE OFF-SITE CONDITION. PURCHASERS MAY EXAMINE THE LISTS AND ARE ENCOURAGED TO INDEPENDENTLY INVESTIGATE THE AREA SURROUNDING THIS PROPERTY IN ORDER TO BECOME FAMILIAR WITH ANY OFF-SITE CONDITIONS WHICH MAY AFFECT THE VALUE OF THE PROPERTY. IN CASES WHERE A PROPERTY IS LOCATED NEAR THE BORDER OF A MUNICIPALITY, PURCHASERS MAY WISH TO ALSO EXAMINE THE LIST MAINTAINED BY THE NEIGHBORING MUNICIPALITY.

SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by

Federal law for a residential dwelling constructed prior to 1978. An addendum providing such disclosure

is

attached

is not applicable.

 

Buyer hereby represents that he has personally inspected and examined the above-mentioned premises and all improvements thereon. Buyer hereby acknowledges that unless otherwise set forth in writing elsewhere in this contract neither Seller nor Seller's representatives, if any, have made any representations concerning the present or past structural condition of the improvements. Buyer and Seller agree to the following concerning the condition of the property:

Buyer accepts the property in its "as-is" and present condition.

Buyer may have the property inspected by persons of Buyer's choosing and at Buyer's expense. If the inspection report reveals defects in the property, Buyer shall notify Seller within 5 days of receipt of the report and may cancel this contract and receive a refund of earnest money, or close this agreement notwithstanding the defects, or Buyer and Seller may renegotiate this contract, in the

discretion of Seller. All inspections and notices to Seller shall be complete within days after execution of this agreement.

Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following repairs and treatment:

Buyer agrees that he will not hold Seller or its representatives responsible or liable for any present or future structural problems or damage to the foundation or slab of said property. If the subject residential dwelling was constructed prior to 1978, Buyer may conduct a risk assessment or inspection for the presence of lead-based

paint and/or lead-based paint hazards, to be completed within days after execution of this agreement. In the alternative, Buyer may waive the opportunity to conduct an assessment/inspection by indicating said waiver on the attached Lead-Based Paint Disclosure form.

MECHANICAL EQUIPMENT AND BUILT IN APPLIANCES: All such equipment is sold

"as-is" without

Buyer Initials ______ _______

- 3 -

Seller Initials _______ _______

 

 

 

warranty, or

shall be in good working order on the date of closing. Any repairs needed to mechanical equipment

or appliances, if any, shall be the responsibility of

Seller Buyer.

 

 

UTILITIES: Water is provided to the property by

 

 

 

, Sewer is provided

by

 

.

Gas is provided by

.

 

 

 

 

 

 

 

 

 

Electricity is provided by

 

 

.

 

 

 

Other:

 

The present condition of all utilities is accepted by Buyer.

 

 

 

 

 

 

 

6.

CLOSING: The closing of the sale will be on or before

 

, 20

 

 

, unless extended pursuant

 

to the terms hereof.

 

 

 

 

 

 

 

 

Closing may be extended to within 7 days after objections to matters disclosed in the title abstract, certificate or

 

Commitment or by the survey have been cured.

 

 

 

 

 

 

 

 

If financing or assumption approval has been obtained, the Closing Date will be extended up to 15 days if necessary

 

to comply with lender's closing requirements (for example, appraisal, survey, insurance policies, lender-required

 

repairs, closing documents). If either party fails to close this sale by the Closing Date, the non-defaulting party will

 

be entitled to exercise the remedies contained herein. The closing date may also be extended by written agreement of

 

the parties.

 

 

 

 

 

 

 

7.

TITLE AND CONVEYANCE: Seller is to convey title to Buyer by Warranty Deed or

 

 

 

(as

 

appropriate) and provide Buyer with a Certificate of Title prepared by an attorney, title or abstract company upon

 

whose Certificate or report title insurance may be obtained from a title insurance company qualified to do and doing

 

business in the state of New Jersey. Seller will also execute a Bill of Sale, if necessary, for the transfer of any

 

personal property. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and special

 

liens affecting the subject property which are not specifically assumed by Buyer herein. Title shall be good and

 

marketable, subject only to (a) covenants, conditions and restrictions of record, (b) public, private utility easements

 

and roads and rights-of-way, (c) applicable zoning ordinances, protective covenants and prior mineral reservations,

 

(d) special and other assessments on the property, if any, (e) general taxes for the year

 

 

and subsequent

 

years and (e) other:

 

 

 

 

 

.

The Buyer does not have to complete the purchase, however, if any easement, restriction or facts disclosed by an accurate survey would substantially interfere with the use of the Property for residential purposes.

A title report shall be provided to Buyer at least 5 days prior to closing. In the event Seller’s title shall contain any exceptions other than as set forth herein, Buyer shall notify Seller and Seller shall have 30 days within which to eliminate those exceptions. If Seller cannot remove those exceptions, Buyer shall have the option to void this Contract or to proceed with closing of title without any reduction in the purchase price. If Buyer elects to void this Contract, as provided in the preceding sentence, the deposit money shall be returned to Buyer and Seller shall reimburse Buyer for reasonable and ordinary search and survey expenses. Seller represents that the property may be legally used as zoned and that no government agency has served any notice to Seller requiring repairs, alterations or corrections of any existing condition except as stated herein.

8.APPRAISAL, SURVEY AND TERMITE INSPECTION: Any appraisal of the property shall be the responsibility

of

Buyer Seller. A survey is: not required required, the cost of which shall be paid by Seller Buyer. A termite inspection is not required required, the cost of which shall be paid by Seller Buyer. If a survey is required it shall be obtained within 5 days of closing.

9.POSSESSION AND TITLE: Seller shall deliver possession of the Property to Buyer at closing. Title shall be

Buyer Initials ______ _______

- 4 -

Seller Initials _______ _______

 

 

 

conveyed to Buyer, if more than one as

Joint tenants with rights of survivorship,

tenants in common,

Other:

 

 

Prior to closing the property shall remain

in the possession of Seller and Seller shall deliver the property to Buyer in substantially the same condition at closing, as on the date of this contract, reasonable wear and tear excepted.

10.CLOSING COSTS AND EXPENSES: The following closing costs shall be paid as provided. (Leave blank if the closing cost does not apply.)

Closing Costs

Buyer

Seller

Both*

Attorney Fees

Title Insurance

Title Abstract or Certificate

Property Insurance

Recording Fees

Appraisal

Survey

Termite Inspection

Origination fees

Discount Points

If contingent on rezoning, cost and expenses of rezoning

Other:

All other closing costs

* 50/50 between buyer and seller.

11.PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account, the escrow account must be transferred to Buyer without any deficiency. Buyer shall reimburse Seller for the amount in the transferred account. Buyer shall pay the premium for a new insurance policy. If taxes are not paid at or prior to closing, Buyer will be obligated to pay taxes for the current year.

12.CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible. If Seller fails to do so due to factors beyond Seller’s control, Buyer may either (a) terminate this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance and the Closing Date will be extended as necessary, or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds.

13.DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (a) seek such other relief as may be provided by law, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If Seller fails to comply with this contract, Seller will be in default and Buyer may either (a) seek such other relief as may be provided by law, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract.

14.ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

15.REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or

Buyer Initials ______ _______

- 5 -

Seller Initials _______ _______

 

 

 

security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.

16.FEDERAL TAX REQUIREMENT: If Seller is a "foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.

17.AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement.

18.NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand- delivered at, or transmitted by facsimile machine as follows:

To Buyer at:

 

To Seller at:

 

 

 

 

 

 

 

 

 

Telephone ( )

Facsimile ( )

Telephone ( )

Facsimile ( )

19.ASSIGNMENT: This agreement may not be assigned by Buyer without the consent of Seller. This agreement may be assigned by Seller and shall be binding on the heirs and assigns of the parties hereto.

20.PRIOR AGREEMENTS: This contract incorporates all prior agreements between the parties, contains the entire and final agreement of the parties, and cannot be changed except by their written consent. Neither party has relied upon any statement or representation made by the other party or any sales representative bringing the parties together. Neither party shall be bound by any terms, conditions, oral statements, warranties, or representations not herein contained. Each party acknowledges that he has read and understands this contract. The provisions of this contract shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto. When herein used, the singular includes the plural and the masculine includes the feminine as the context may require.

21.NO BROKER OR AGENTS: The parties represent that neither party has employed the services of a real estate broker or agent in connection with the property, or that if such agents have been employed, that the party employing said agent shall pay any and all expenses outside the closing of this agreement.

22.EMINENT DOMAIN: If the property is condemned by eminent domain after the effective date hereof, the Seller and Buyer shall agree to continue the closing, or a portion thereof, or cancel this Contract. If the parties cannot agree,

this contract shall

remain valid with Buyer being entitled to any condemnation proceeds at or after closing, or

be cancelled and the earnest money returned to Buyer.

Buyer Initials ______ _______

- 6 -

Seller Initials _______ _______

 

 

 

23.OTHER PROVISIONS

24.TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THIS AGREEMENT.

25.GOVERNING LAW: This contract shall be governed by the laws of the State of New Jersey.

26.DEADLINE LIST (Optional) (complete all that apply). Based on other provisions of Contract.

Deadline

Date

Loan Application Deadline, if contingent on loan

Loan Commitment Deadline

Buyer(s) Credit Information to Seller

Disapproval of Buyers Credit Deadline

Survey Deadline

Title Objection Deadline

Survey Deadline

Appraisal Deadline

Property Inspection Deadline

Whether or not listed above, deadlines contained in this Contract may be extended informally by a writing signed by the person granting the extension except for the closing date which must be extended by a writing signed by both Seller and Buyer.

EXECUTED the

 

day of

 

, 20

 

(THE EFFECTIVE DATE).

 

 

 

 

 

 

 

 

 

Buyer

 

 

 

Seller

 

 

 

 

 

 

 

 

 

 

Buyer

 

 

 

Seller

 

Buyer Initials ______ _______

- 7 -

Seller Initials _______ _______

 

 

 

EXHIBIT FOR DESCRIPTION OR ATTACH SEPARATE DESCRIPTION

 

 

 

 

 

RECEIPT

 

 

 

 

 

 

Receipt of Earnest Money is acknowledged.

 

 

 

 

 

 

Signature:

 

 

Date:

, 20

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telephone (

)

 

 

Address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Facsimile (

)

 

 

 

 

City

State

Zip Code

 

 

 

 

 

 

 

 

Buyer Initials ______ _______

- 8 -

Seller Initials _______ _______

 

 

 
Get Nj Contract Sale PDF Form

Form Characteristics

Fact Name Description
Purpose This form is a legal document used in New Jersey for the sale and purchase of real estate without the involvement of a broker.
Main Parties The "Seller" and "Buyer" can refer to one or more individuals or entities involved in the transaction.
Property Description Buyers must fill in a specific address along with its corresponding lot and block number as identified on the municipal tax map.
Sales Price Section The form requires both parties to agree on the total sales price along with details about payment methods, including earnest money and potential seller financing.
Financing Contingencies Buyers may include contingencies related to obtaining financing, stipulating that the contract is void if financing is not approved within a certain timeframe.
Condition of Property The Buyer accepts the property "as-is," but may have the right to conduct inspections and negotiate repairs if defects are found.
Closing Process The closing of the sale should occur on or before a specified date, except if an extension is agreed upon by both parties.
Title Transfer The Seller must convey title to the Buyer using a Warranty Deed, ensuring that the title is free from undisclosed liens or encumbrances.
Governing Law This contract is governed by the laws of the state of New Jersey, including compliance with its specific residential real estate statutes.

Guidelines on Utilizing Nj Contract Sale

Filling out the NJ Contract Sale form is an important step in the process of buying or selling property in New Jersey. After completing the form, both parties will need to take necessary actions based on the terms outlined in the agreement. The following steps will guide you through filling out the form correctly.

  1. Identify the Seller and Buyer: Fill in the names of the Seller(s) and Buyer(s) at the beginning of the contract.
  2. Property Description: Clearly describe the property being sold, including the address and legal description. Ensure it is accurate to avoid misunderstandings.
  3. Items Included: List any items included in the sale, such as appliances or fixtures. Strike through any items that the Seller will retain.
  4. Sales Price: Enter the purchase price and break down the payment method, detailing the earnest money, new loan amount, and cash at closing.
  5. Financing Conditions: Indicate whether this sale is a cash sale or contingent on financing. If financing is involved, provide details for buyer financing.
  6. Earnest Money: State the amount of earnest money to be deposited and the recipient of this payment.
  7. Property Condition: Agree on the condition of the property. Buyers may have it inspected, and sellers should disclose any known issues.
  8. Closing Date: Set a target closing date and note any conditions that may affect this date.
  9. Title and Conveyance: Specify how the title will be conveyed and what documents will be provided at closing.
  10. Closing Costs: Clearly outline who will pay for any closing costs and provide a breakdown where necessary.
  11. Prorations: Discuss how taxes and other expenses will be prorated through the closing date.
  12. Default Provisions: Understand the default provisions and what will happen if either party fails to comply.
  13. Signatures: Ensure that both parties sign and date the contract at the end to make it legally binding.

What You Should Know About This Form

What is the NJ Contract Sale form?

The NJ Contract Sale form is a legal document used in New Jersey for the sale and purchase of real estate when no broker is involved. It establishes an agreement between the seller and the buyer regarding the property, its price, financing terms, and other essential details. This form ensures that both parties understand their obligations and rights throughout the transaction.

What should be included in the property description section?

The property description section requires specific details that can accurately identify the property being sold. This includes the address, the municipal tax map information such as Lot and Block numbers, and a legal description, which can sometimes be attached as an exhibit. Additionally, any items that come with the property, such as fixtures and appliances, should also be listed, along with items that are specifically excluded from the sale.

What does the section on financing cover?

The financing section outlines how the buyer plans to pay for the property. It provides options such as cash sale, owner financing, or obtaining a new loan. If financing is required, the contract will specify time frames for the buyer to obtain approval and what happens if they cannot secure financing in that time. The section also states any specific conditions attached to different financing options, including FHA or VA loans, if applicable.

What happens during the closing process?

The closing process involves finalizing the sale, where both parties complete their obligations outlined in the contract. This includes transferring funds, signing necessary documents, and transferring ownership of the property from the seller to the buyer. The closing date must be set before the contract is signed, with provisions for possible extensions. Buyers should also be prepared for proration of taxes and other costs related to the property.

What if there are defects found during the property inspection?

If the buyer conducts a property inspection and discovers defects, they have the right to notify the seller within a specified time frame. The buyer can then choose to cancel the contract and receive a refund of their earnest money, proceed with the sale despite the issues, or negotiate repairs with the seller. It's crucial for buyers to understand their rights regarding property condition prior to closing.

Common mistakes

Filling out the New Jersey Contract Sale form can be a straightforward process, but mistakes can lead to serious consequences. One common error is failing to accurately identify the property. The section that requests the address, lot, and block numbers must be completed thoroughly. Incomplete or incorrect information can create confusion later on and potentially lead to disputes over property boundaries.

Another frequent mistake occurs in the sales price section. Both columns of the sales price must reflect equivalent amounts. To ensure this, double-check that all figures related to the purchase price, earnest money, and financing options add up correctly. If these amounts do not match, it may result in delays or complications before the closing.

Buyers often neglect to understand the financing contingencies they are agreeing to when completing the form. It is crucial to indicate whether the sale is contingent upon financing or if the buyer is making a cash purchase. Misunderstanding these terms can lead to confusion and frustration if financing falls through shortly after the contract is signed.

The earnest money deposit is another area where mistakes can happen. Buyers must ensure the correct amount is filled in and that they deposit it with an appropriate party at the correct time. Failure to do this may jeopardize their position in the sale and might allow the seller to terminate the agreement.

Lastly, many overlook the importance of understanding the property condition and disclosures. Buyers should acknowledge that the property is being sold "as-is," and they have the right to conduct inspections. However, the lack of due diligence in this regard might result in unanticipated repairs or issues that arise after the sale is completed. Failure to review the relevant sections concerning property condition can lead to disputes about liability for those issues.

Documents used along the form

The New Jersey Contract Sale form is an essential document in real estate transactions. However, several other documents often accompany this contract to facilitate a smooth sale process and ensure all necessary agreements and disclosures are in place. Below are some commonly used forms.

  • Seller's Disclosure Statement: This document outlines any known issues with the property, such as structural defects, pest infestations, or hazardous materials. It provides transparency to the buyer regarding the condition of the property before finalizing the sale.
  • Lead-Based Paint Disclosure: Required for homes built before 1978, this document informs buyers about the possible presence of lead-based paint and the associated risks. Sellers must provide this disclosure to protect buyers and ensure compliance with federal law.
  • Title Search Report: This report verifies the legal ownership of the property and reveals any liens, encumbrances, or claims against it. Obtaining a title search ensures that buyers can acquire a clear title free of surprises.
  • Mortgage Contingency Addendum: If the buyer is obtaining financing, this addendum outlines the terms under which the sale is contingent upon securing a mortgage. It specifies the time frame for obtaining financing and the buyer’s obligations during this process.

These documents work together with the New Jersey Contract Sale form to create a comprehensive framework for the real estate transaction, thereby safeguarding the interests of both buyers and sellers.

Similar forms

  • Purchase Agreement: Much like the NJ Contract Sale form, a Purchase Agreement outlines the terms of a real estate transaction, including the purchase price and property details. Both documents serve as legally binding contracts between buyers and sellers.
  • Residential Sales Contract: This type of contract typically includes clauses regarding the sale of a residential property, similar to the NJ form. It covers aspects such as earnest money, financing options, and closing terms.
  • Lease-Purchase Agreement: Like the NJ form, a Lease-Purchase Agreement allows the buyer to lease a property with an option to buy it later. Both documents detail the terms of purchase and the responsibilities of each party.
  • Real Estate Option Contract: This agreement provides a buyer the exclusive right to purchase a property at a certain price within a specified timeframe. Similar to the NJ Contract Sale form, it defines the obligations of both parties and the conditions for the sale.
  • Escrow Agreement: An Escrow Agreement, akin to parts of the NJ document, outlines how funds will be held during a real estate transaction. It details the terms under which these funds are disbursed, ensuring both parties meet their obligations.
  • Disclosure Statement: Just as the NJ contract includes disclosures about property condition, a Disclosure Statement informs buyers of any significant issues with the property, providing transparency in the transaction.
  • Seller Financing Agreement: This agreement is similar in that it outlines terms when the seller finances part of the purchase price. It details the interest rate, payment schedule, and consequences of default, just as the NJ form does.
  • Deed of Trust: While typically used to secure a loan, a Deed of Trust can resemble certain aspects of the NJ Contract Sale form. Both documents outline the transfer of interest in property and the obligations tied to the property ownership.

Dos and Don'ts

When filling out the NJ Contract Sale form, it’s important to be diligent and thorough. Below are some guidelines to follow and avoid:

  • Do read the entire form carefully to ensure you understand the terms and conditions before signing.
  • Do provide complete and accurate property information, including the legal description and municipal tax map details.
  • Do clearly specify the sale price and ensure that both columns, if applicable, are equal.
  • Do acknowledge and sign each page to confirm your acceptance of the terms.
  • Don't leave any blanks on the form; every section should be completed as instructed.
  • Don't underestimate the importance of reviewing the property condition and any disclosures required.
  • Don't ignore deadlines for financing or inspections; timely action is crucial.
  • Don't forget to consult with legal or real estate professionals if you have questions about the terms.

Misconceptions

  • Misconception 1: The NJ Contract Sale form is only for residential properties. Many people think this form can only be used for buying or selling houses. In reality, it can also be used for various types of real estate, including commercial properties, land, and investment properties.
  • Misconception 2: The form guarantees financing. A common belief is that completing the NJ Contract Sale form ensures financing for the buyer. However, financing is contingent upon the buyer obtaining approval from lenders, and the contract itself makes this clear.
  • Misconception 3: All repairs must be completed before closing. Some sellers think they must fix everything before the sale can go through. The NJ Contract Sale form allows buyers to accept the property "as-is." Buyers can negotiate repairs after inspections, but they are not required to be completed beforehand.
  • Misconception 4: Earnest money is nonrefundable. Many believe that earnest money is automatically forfeited if the sale doesn’t go through. However, the form outlines specific circumstances under which the buyer may recover the earnest money, such as if financing is not secured.
  • Misconception 5: The seller is not responsible for off-site conditions. A misunderstanding exists that sellers have no obligation related to off-site conditions affecting the property. The form emphasizes that buyers should conduct their own research regarding off-site conditions, but sellers must also disclose known issues that may impact the property's value.

Key takeaways

  • Complete Property Identification: Clearly describe the property, including the address and tax map details.
  • Sales Price Accuracy: Ensure both columns of the sales price and payment breakdown are equal.
  • Understand Financing Options: Identify whether the sale is cash, owner financing, or contingent on new loan approval.
  • Earnest Money Requirements: Deposit the agreed amount promptly with an established escrow agent.
  • Property Condition Acknowledgment: Accept the property "as-is," while retaining the right to conduct inspections.
  • Disclosure Duties: Seller must disclose any known property issues or past conditions, particularly related to lead paint.
  • Closing Procedures: Be aware of deadlines for closing, including any conditions that may extend the date.
  • Title Assurance: Seller is responsible for providing good and marketable title free of undisclosed encumbrances.
  • Casualty Loss Protocol: Understand the procedures if the property is damaged prior to closing, including potential remedies.
  • Default Potential: Recognize that either party failing to comply with the contract terms may lead to legal actions or termination.
  • Attorney Fees Clause: Be aware that the prevailing party in legal disputes may recover attorney fees from the losing party.

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