New Jersey Real Estate Purchase Agreement

The New Jersey residential real estate purchase agreement (“purchase and sale agreement”) is a written document that outlines the terms of a real estate transaction between a buyer and seller of real property. Terms include the purchase price, address of the property, closing date and more.

Do Sellers in New Jersey Have to Disclose Property Defects?

New Jersey does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.

Required Seller Disclosures in New Jersey

• Seller’s Property Condition Disclosure Statement. In New Jersey, there are no mandatory seller disclosure forms. However, under the common law, New Jersey courts created a standard form for sellers to identify any known information that would affect the buyer’s decision if they knew about it—knows as material facts. While the seller must tell buyers about any known issues with the property, they are not required to hire an inspector or search for problems.
• Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
• Off-Site Conditions. Only essential when selling a newly constructed dwelling, the vendor of a property is obligated to furnish the purchaser with a written notification divulging how to look up the nearby off-site conditions that could have an impact on the property’s worth.
• Point-of-Entry Treatment (POET) Systems. If the New Jersey Spill Compensation Fund covered the cost of installing and operating a POET system for the property being sold, the seller is liable to inform the purchaser that the system will no longer be funded upon the transfer of the home and also deliver a written notification to the Department of Environmental Protection and Energy within thirty (30) days of securing a binding sales contract.
• Private Well Testing. If the potable water source for the home being sold is provided by a private well, a test on the drinking water must be conducted and a copy of the results distributed to both the seller and buyer to be reviewed and acknowledged by both parties.
• Radon. Although the results of a property’s radon test may usually remain confidential, the seller of a home that has been tested for the gas must present the prospective buyer with any documents concerning this matter before entering into an agreement for conveyance.

Frequently Asked Questions

How Do You Write a Real Estate Contract in New Jersey? In New Jersey, a real estate contract should include all the following information: the buyer and seller’s information, property details, pricing and financing, closing and possession dates beside any property insurance and conflict resolution contingencies. Read more » How Can You Get out of a Real Estate Contract in New Jersey? A real estate contract in New Jersey can be broken for any of the following reasons: failure to pay a deposit, material defects (found during inspection), cancellation during the contingency period, failure to get financing or a mutual agreement between both parties. Read more » What Is the Effective Date of a Real Estate Contract in New Jersey? The effective date of a real estate contract in New Jersey is the date that both the buyer and seller have agreed to all terms of the contract and have executed the contract. At this time, all of the contractual obligations will be bound and enforceable on the effective date. Read more » Can a Seller Cancel a Real Estate Contract in New Jersey? In New Jersey, home sellers can cancel a real estate contract if the buyer does not meet any of their contingencies. By making the sale contingent upon specific conditions like the sale of a home, financing, appraisal, or inspection, sellers can cancel the contract if the buyer does not meet any. Read more » How Do I Fill out a Real Estate Contract in New Jersey? To fill out a real estate contract in New Jersey, begin by filling in the names and addresses of both parties (the buyer and seller). Next, complete the property information, purchase price, along with the terms and conditions of the deal. Read more »