New Jersey Real Estate Contract & Forms for Selling Your Home
New Jersey got its name from the island of Jersey in the English Channel. It is a historic state being the site where important battles during the American Revolutionary War took place. New Jersey has its natural charm offering a wide range of communities, cities, small towns and rural lands. It also has old and newly developed suburbs which continue to attract home buyers.
Latest reports say the median sale price for homes in New Jersey notably those along the coastline went up by 7.3 percent in the third quarter of 2006. These areas are in Monmouth, Ocean, Middlesex and Somerset Counties. The National Association of Realtors added that median prices in other areas also increased despite the large volume of homes being sold on the market. The state government, however, is doing its best to address the situation by focusing on providing affordable housing to all families in New Jersey.
Real Estate Forms Required
If you are selling your home, you need to know about the important documents required by your state law. A purchase agreement or contract is the initial form you will get from a prospective buyer. This document contains the sale price, the legal description of the property, mode of payment, person to close the deal, closing date, method of delivery, contingencies, among many others.
Attached with the contract is the disclosure form which provides information about the condition of the home including its defective parts. These defects may cover the heating and air conditioning, electrical and plumbing system.
A counter offer proposal is also involved in the transaction should you, as the seller, not agree to the offered purchase price. This form provides information about your negotiating terms and conditions including incentives you would like to offer to your potential buyer.
During settlement, the documents that need to be presented are the deed (the proof of ownership detailing the legal description of the property and that has to be recorded), survey report and title insurance. The title insurance is issued by the lawyer after checking that the property title is clear and free from encumbrances. The survey report is done by the title office and shows the property’s boundaries as well as the structures on the property.
Well testing
In New Jersey, property sellers are required by law to disclose information about the use of private drinking water wells. This is stated in the Private Well Testing Act (PWTA) which requires testing of wells prior to the sale of a house to ensure the quality of drinking water. Under this act, a contract of sale for a property must have a condition to require a well testing. Both the seller and the buyer should receive, review and sign a copy of the water test results before a contract of sale can be realized.
The act is strict in testing drinking water wells for contaminants. It covers two types of properties – any property that obtains its drinking water from a private well situated inside the property and any property that gets its drinking water from a well that has lower than 15 service connections or one that does not serve a minimum of 25 people every day at least 60 days out of every year.
Costs
In New Jersey, liens or charges on a property include mortgage, construction or mechanic’s lien, judgment liens, tax liens, unpaid municipal utilities and unpaid child support for a divorced couple who own the property.
During the closing of the sale, home sellers may pay for some of the closing costs such as legal fees, liens, realty transfer tax, adjustments tax, water and sewer, oil in tank, home owner’s association fees, certificate of occupancy, smoke detector certificate, carbon monoxide certificate, real estate commission, non-resident income tax.
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