Contracts, Agreements of Sale, and Closings
The agreement of sale
New Jersey requires real estate sale contracts to be in writing and signed to satisfy the statute of frauds. Most resale transactions use the standardized form, which must identify the parties, the property, the price, the deposit, the closing date, and the contingencies (mortgage, inspection, appraisal, sale of the buyer's home, title). Time is ordinarily not of the essence unless a party makes it so by written notice, but contingency deadlines still matter.
Attorney review
The signature feature of New Jersey practice is the three-business-day attorney review period. After the fully signed contract is delivered, either party's attorney may disapprove it in writing; if disapproved, the contract is void unless the disapproving attorney proposes revisions that the other side accepts. Saturdays, Sundays, and legal holidays are excluded when counting. Questions frequently test what happens when no one disapproves - the contract simply stands.
Deposits and default
Earnest money is held in the broker's or attorney's escrow account. If the buyer defaults, the seller may keep the deposit as liquidated damages or sue for specific performance; if the seller defaults, the buyer may recover the deposit and sue for specific performance. Disputed deposits should not be released without written agreement or court order.
Closing mechanics
New Jersey closings are attorney-driven. The seller customarily pays the Realty Transfer Fee (and the 1% "mansion tax" on residential consideration exceeding $1,000,000), while the buyer pays recording charges and lender costs; customs are negotiable and should be spelled out. Title insurance, a survey, and a final walk-through protect the buyer.
Worked example (proration)
Annual taxes are $7,300 and closing is June 30; the seller owes January 1–June 30 (181 days). Using a 365-day year: $7,300 ÷ 365 = $20 per day; 181 × $20 = $3,620 debited to the seller.