I am writing to you to assist you in understanding the procedures in selling and closing on a home especially as it relates to our office.
All contracts drawn by realtors for a sale of a home in New Jersey are required to have an “Attorney Review” clause. This clause provides that either the buyer’s or the seller’s attorney may cancel a contract within three business days of receipt by both parties of a fully executed contract. Very often the buyer’s or seller’s attorney may wish to make changes to the contract and will send a letter disapproving the contract in order to make certain modifications. Once a disapproval letter is sent the contract is not binding until an addendum is signed. We will consult with you regarding any changes that you or the Buyer may request.
The contract normally provides for a number of physical inspections to be made of the home. You will need to make your home available for the buyer’s inspection shortly after attorney review is completed.
It is important to remember that the contract closing date is not a hard and fast date. Many closings take place on the contract closing date but many do not. If it is critical that the closing occur on the contract date please contact this office during the attorney review period to discuss the option of making time of the essence. If time of the essence is not demanded during the attorney review period, the buyer or seller may delay the closing for up to two weeks without penalty. Please contact this office to establish a definite date.
The buyer will arrange for a final walk through of the home with their realtor within a reasonable time prior to closing of title. It is best that this inspection be made when the house is vacant if possible. Please be sure to leave the property in broom clean condition.
You are responsible for the Certificate of Occupancy and Smoke Detector Certificate, which now requires the installation of Carbon Monoxide Detectors and Fire Extinguishers. It is important to make arrangements for these inspections a minimum of 30 days prior to closing to allow for inspections and re-inspections if necessary. However do not begin this process too soon because most certificates expire within 30 or 60 days of issuance. Some municipalities do not require a Certificate of Occupancy, but a Smoke Detector Certification must be provided in all transactions. Other towns have specific requirements and inspections that must be performed prior to applying for these certificates. Please contact your municipality for their specific requirements. In some cases your realtor, if applicable, can help you with the process of arranging for these inspections.
Enclosed please find a “Seller’s Information Sheet” which requests information that we will need from you to proceed in this matter. Please complete the form, attached copies of your Deed, Title Policy and Survey if you have them.
The state of New Jersey imposes a tax on the sale of real estate called a Realty Transfer Fee. If you are over 62 years of age or are blind or permanently disabled and are selling your residence you are entitled to a discounted tax rate. Also the State of New Jersey requires that 2% of the sales price be withheld from the proceeds unless you will continue to be a New Jersey resident or are selling your primary residence within the meaning of I.R.C 1986, 26 U.S.C. s.121.
I trust that this letter will be a guide to you as to how to proceed. Communication between the parties is very important. If you have any questions at any time please give me a call. I look forward to working with you on the sale of your home