The New Jersey Association of REALTORS® Standard Form of Real Estate Contract, primarily utilized in the sale of one to four family residential properties or vacant one family lots, outlines the obligations and agreements between buyers and sellers under the auspices of a previously executed written listing agreement. This legally binding agreement becomes final within three business days, offering a brief period during which parties may consult an attorney for review and/or cancellation, as detailed in the attorney review section. For those looking to navigate this important step in property transactions, a straightforward means to fill out the form is available by clicking the button below.
When navigating the waters of real estate transactions in New Jersey, the New Jersey Association of Realtors® Standard Form of Real Estate Contract, delineated for transactions involving one to four family residential properties or vacant one family lots, serves as an indispensable guide. Crafted with precision by the New Jersey Association of Realtors®, this document, which mandates prior execution of a written listing agreement by the seller, is designed to safeguard equal housing opportunities within the framework of a legally binding contract. It unfolds with clarity the terms of purchase, price, and payment manners, emphasizing the critical 3-day attorney review period that allows for contract revision or cancellation by a legal professional. Moreover, the contract outlines the buyer's financial obligations, mandates the accurate disclosure of the selling price, and details the handling of tenancies, ensuring that the property does not contravene any municipal, county, state, or federal regulations. The quality of the title, zoning laws, included and excluded sale items, along with the buyer's entitlement and the seller's responsibilities concerning property condition at closing, are encapsulated within this comprehensive contract. Notably, it addresses lead-based paint disclosures for older homes, stipulates inspection and mortgage contingencies, and outlines procedures for handling buyer or seller settlement failures, thereby encompassing a wide spectrum of considerations crucial for a transparent and equitable property transaction.
NEW JERSEY ASSOCIATION OF REALTORS@STANDARD FORM OF
REAL ESTATE CONTRACT
01996 New Jersey Association of REALTORS@,Inc.
THIS FORM MAY BE USED ONLY IN THE SALE OFA ONE TO FOUR FAMILY RESIDENTIALPROPERTY OR VACANT ONE FAMILY LOTS.
EQUAL HOUS,NG
REALTOR@THIS FORM IS SUITABLEFOR USE ONLY WHERE THE SELLER HAS PREVIOUSLY EXECUTEDA WRITTEN LISTING AGREEMENT.
O P P O R T U N I T Y
THIS IS A LEGALLY BINDING CONTRACT THAT WILL BECOME FINAL WITHIN THREE BUSINESS DAYS. DURING THIS PERIOD YOU MAY CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND/OR CANCEL THE CONTRACT. SEE SECTION ON ATTORNEY REVIEW FOR DETAILS.
CONTRACT OF SALE
11. PURCHASE AGREEMENT AND PROPERTY DESCRIPTION:
3
,Buyer,
4
5 SOC.Sec. #SOC.Sec. #
6
7whose address is
8
9AGREES TO PURCHASE FROM
10
,Seller,
11
12
13
Soc.Sec. #
SOCSec. . #
14
15whose address is
16THROUGH THE BROKER(S) NAMED I N THIS AGREEMENT AT THE PRICE AND TERMS STATED BELOW,
17THE FOLLOWING PROPERTY:
18Property Address:
19
Shown on the municipal tax map of
County
20
As Lot
Block
Approximate size of lot
21THE WORDS “BUYER” AND “SELLER” INCLUDE ALL BUYERS AND SELLERS LISTED ABOVE.
22
23 2. PURCHASE PRICE: THE TOTAL PURCHASE PRICE IS:$
24
253. MANNER OF PAYMENT
26
(A) Deposit paid by Buyer on signing of this Agreement to 0 Listing Broker or 0 Participating
$
27Broker, by 0 cash or 0 check, for which this is a receipt:
28
29
(B) Additional deposit to be paid by Buyer on or before
(date): $
30All deposit monies paid by the Buyer shall be held in escrow in the NON-INTEREST
31
BEARING TRUST ACCOUNT of
,Escrowee,
32until closing of title, at which time all monies shall be paid over to the Seller. The deposit monies shall
33not be paid over to the Seller prior to the closing of title, unless agreed in writing by both the Buyer and Seller.
34In the event the Buyer and Seller cannot agree on the disbursement of these escrow monies. the Escrowee may
35place the deposit monies in Court requesting the Court to resolve the dispute.
36
37(C) IF PERFORMANCE BY BUYER IS CONTINGENT UPON OBTAINING A MORTGAGE.
38The Buyer agrees to apply immediately for a mortgage loan through any lending institution of the Buyer’s
39choice or the ofice of the Listing Broker or the Participating Broker. The application shall be furnished by the
40Buyer in writing on an application form prescribed by the lending institution to which the application shall be
41submitted. Buyer shall also furnish, in a timely manner. such other documents and information as is usually
42required by said lending institution. Failure of Buyer to comply with the foregoing. in good faith, shall be
43deemed a breach of this Contract of Sale. The amount of mortgage loan required by the Buyer is
44
and will be what is commonly known as the
45
(F.H.A.) (V.A.) (Conventional) (A.R.M.)
year direct reduction plan with interest at not
46
more than
E/r and not more
Points. Buyer agrees to pay not
than
47
more than __
Points. Seller agrees to pay not more than
Points.
48IF THE MORTGAGE LOAN HAS NOT BEEN ARRANGED, OR IF THE BUYER HAS NOT
49NOTIFIED SELLER OF BUYER’S DECISION TO COMPLETE THE TRANSACTION
50WITHOUT OBTAINING A MORTGAGE COMMITMENT, ON OR BEFORE
51
(Date) THEN EITHER BUYER OR SELLER MAY VOID
52THIS AGREEMENT BY WRITTEN NOTICE TO THE OTHER PARTY. The methbd of notifying
53
the other party shall be in accordance with Section 21 of the Agreement.
54
55(D) BALANCE OF PURCHASE PRICE. The balance of the purchase price shall be paid by cash,
56
certified check or Attomey’s Trust Account check on delivery of a
(Type
57of Deed). Title to the Property will be free from all claims or rights of others, except as described in Sections
586 , 7 and 8 of this Agreement. The deed shall contain the full legal description of the Property. Payment of the
59balance of the purchase price by Buyer and delivery of the deed and affidavit of title by Seller occur at the
60
“Closing.” The Closing will take place on or before
,at the office of
61
or such other place as the Seller and the Buyer may agree. $
62
63
TOTAL PURCHASE PRICE:
64
654. BUYER FINANCIALLY ABLE TO CLOSE:
66Buyer represents that Buyer has sufficient cash available (together with the mortgage referred to in Section 3) to complete
67this purchase.
NJAR Form-118-2/02 Page 2 Of 6
Buyer’sSeller’s
Initials:Initials:
685. ACCURATE DISCLOSURE OF SELLING PRICE:
69The Buyer and Seller certify that this Contract accurately reflects the gross sale price as indicated on line sixty-three (63) of this
70Contract. The Buyer and Seller UNDERSTANDAND AGREE that THIS INFORMATION SHALL BE DISCLOSED to the
71Internal Revenue Service as required by law.
72
736. TENANTS, IFANY:
74This sale is made subject to the following tenancies. The Seller warrants that these tenancies are not in violation of existing
75Municipal, County, State or Federal rules, regulations or laws.
76NAMELOCATIONRENTSECURITY DEPOSITTERM
77
78
79
807. QUALITY OF TITLE:
81This sale will be subject to easements and restrictions of record, if any, and such state of facts as an accurate survey might disclose.
82Generally, an easement is a right of a person other than the owner of Property to use a portion of the Property for a special purpose. A
83restriction is a recorded limitation on the manner in which a Property owner may use his/her/their Property. The Buyer does not have
84to complete the purchase, however, if any easement, restriction, or facts disclosed by an accurate survey would substantially interfere
85with the use of the Property for residential purposes. The sale will also be made subject to applicable zoning ordinances.
86Title to the Property shall be good, marketable and insurable, at regular rates, by any title insurance company licensed to
87d o business in the State of New Jersey, subject only to the claims and rights described in this section and Section 6. Buyer agrees
88to order title insurance commitment (title search) and survey if necessary and to furnish copies to Seller. In the event Seller’s
89title shall contain any exceptions other than as set forth in this paragraph, Buyer shall notify Seller and Seller shall have 30 days
90within which to eliminate those exceptions. If Seller cannot remove those exceptions, Buyer shall have the option to void this
91Contract or to proceed with closing of title without any reduction in the purchase price. If Buyer elects to void this Contract, as
92provided in the preceding sentence, the deposit money shall be returned to Buyer and Seller shall reimburse Buyer for search and
93
survey expenses not exceeding
dollars.
94
95
8. BUILDING AND ZONING LAWS:
96
The Buyer intends to use the Property as a
family home. The Seller states, to the best of the
97Seller’s knowledge, that this use does not violate any applicable zoning ordinance, building code or other law. The Seller will pay for
98and obtain Certificate of Occupancy, Certificate of Land Use Compliance or other similar document required by law and will arrange
99and pay for all inspections required to obtain such document. SELLER AGREES TO CORRECT ALL VIOLATIONS, AT
100THE SELLER’S OWN EXPENSE, PRIOR TO THE CLOSING OF TITLE.
101
1029. ITEMS INCLUDED IN SALE:
103Gas and electric fixtures, cooking ranges and ovens, hot water heaters, linoleum, T.V. antenna. screens, storm sash, shades, blinds,
104awnings, radiator covers, heating apparatus and sump pump, if any, except where owned by tenants, are included in this sale. All of
105the appliances shall he in working order as of the closing of title. This provision shall not survive closing of title. This means
106that the Seller DOES NOT GUARANTEE the condition of the appliances AFTER the deed and affidavit of title have been
107delivered to the Buyer at the “Closing”. The following items are also specifically included:
108
109
110
11110. ITEMS EXCLUDED FROM SALE:
11511. ASSESSMENTS:
116All confirmed assessments and all unconfirmed assessments which may be imposed by the municipality for public improvements
117which have been completed as of the date of Closing are to be paid in full by the Seller or credited to the Buyer at the Closing. A
118confirmed assessment is a lien (legal claim) against the Property. An unconfirmed assessment is a potential lien (legal claim) which,
119when approved by the appropriate governmental body, will become a legal claim against the Property.
121 12. FINAL INSPECTION:
122Seller agrees to permit the Buyer or the Buyer’s duly authorized representative to examine the interior and exterior of the Property
123at any reasonable time immediately before Closing.
125 13. NEW JERSEY HOTEL AND MULTIPLE DWELLING HEALTH AND SAFETY ACT
126If the New Jersey Hotel and Multiple Dwelling Health and Safety Act applies to the Property, the Seller represents that the
127 Property complies with the requirzments of the Act.
12914. NO ASSIGNMENT
130This Agreement shall not be assigned without the written consent of the Seller. This means that the Buyer may not transfer to
131anyone else his/her/their rights under this Agreement to buy the Property.
13315. RISK OF LOSS:
134The risk of loss or damage to the Property by fire or otherwise, except ordinary wear and tear, is on the Seller until the Closing.
13616. ADJUSTMENTS AT CLOSING; RIGHTS TO POSSESSION:
137Rents, water charges, sewer charges, real estate taxes, interest on any existing mortgage to be assumed by Buyer, and fuel are to
138be apportioned as of the date of actual closing of title. The Buyer shall be entitled to possession of the Property and any rents or profits
139from the Property, immediately upon the delivery of the deed and closing of title. The Seller shall have the privilege of paying off
140any person with a claim or right affecting the Property from the proceeds of this sale at the time of Closing.
14217. MAINTENANCE AND CONDITION OF PROPERTY
143The Seller agrees to maintain the grounds, buildings and improvements, in good condition, subject to ordinary wear and tear. The
144premises shall be in “broom clean” condition and free of debris on the date of Closing. Seller represents that all electrical, plumbing,
145heating and air conditioning systems (if applicable), together with all fixtures included within the terms of the Agreement now work
NJAR Form-118-2/02
Page 3 of 6
Initials:
146and shall be in proper working order at the time of Closing. Seller further states, that to the best of Seller’s knowledge, there are
147currently no leaks or seepage in the roof, walls or basement UNLESS OTHERWISE INDICATED IN THE ADDITIONAL
148CONTRACTUAL PROVISIONS SECTION (Section 31) OF THIS AGREEMENT. ALL REPRESENTATIONS
149AND/OR STATEMENTS MADE BY THE SELLER, IN THIS SECTION, SHALL NOT SURVIVE CLOSING OF
150TITLE. This means that the Seller DOES NOT GUARANTEE the condition of the premises AFTER the deed and affidavit of
151title have been delivered to the Buyer at the “Closing”.
152
15318. LEAD-BASED PAINT DOCUMENT ACKNOWLEDGMENT (Applies to dwellings built before 1978)
154Buyer acknowledges receipt of the EPA pamphlet entitled “Protect Your Family From Lead In Your Home.” Moreover, ;I copy of
155a document entitled “Disclosure of Information and Acknowledgment Lead-Based Paint and Lead-Based Paint Hazards” has been
156fully completed and signed by Buyer. Seller and Broker(s) and is appended to this Agreement as Addendum “A“ and is part of
157this Agreement.
158
15919. LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARD CONTINGENCY CLAUSE:
160(This paragraph is applicable to all dwellings built prior to 1978. The law requires that unless the Buyer and Seller
161agree to a longer or shorter period, Seller must allow Buyer a ten-day (10) period within which to complete an inspection
162and/or risk assessment of the Property. Buyer, however, has the right to waive this clause in its entirety.)
163This Agreement is contingent upon an inspection and/or risk assessment (the “Inspection”) of the Property by a certified
164inspector/risk assessor for the presence of lead-based paint and/or lead-based paint hazards. The Inspection shall be ordered and
165obtained by the Buyer at the Buyer’s expense, within ten (10) calendar days after the termination of the Attorney Review period set
166forth in Section 24 of this Agreement (the “Completion Date”). If the Inspection indicates that no lead-based paint or lead-based paint
167 hazard is present at the Property, this contingency clause shall be deemed to be null and void. If the Inspection indicates that lead-
168 based paint or lead-based paint hazard is present at the Property, this contingency clause will terminate at the time set forth above
169 unless within (5j days from the Completion Date, the Buyer delivers a copy of the inspection and/or risk assessment report to the
170 Seller and Broker(s) and (a) advises Seller and Broker(s) ,in writing, that Buyer is voiding this Agreement; or (b) delivers to Seller
171 and Broker(s) a written amendment (the “Amendment”) to this Agreement listing the specific existing deficiencies and corrections
172 required by the Buyer. The Amendment shall provide that the Seller agrees to (a) correct the deficiencies; and (b) furnish the Buyer
173with a certification from a certified inspector/risk assessor that the deficiencies have been corrected, before the date of Closing. The
174
Seller shall have
days after receipt of the Amendment to sign and return it to Buyer or send a written counter-proposal
175to Buyer. If Seller does not sign and return the Amendment or fails to offer a counter-proposal, this Agreement shall be null and void.
176
In the event Seller offers a counter-proposal, Buyer shall have
days after receipt of the counter-proposal to accept
177it. If the Buyer fails to accept the counter-proposal within the time limit provided, this Agreement shall be null and void.
17920. INSPECTION CONTINGENCY CLAUSE:
180(a) Responsibilities of Home Ownership
181The Buyer and Seller acknowledge and agree that because the purchase of a home is one of the most significant investments
182a person can make in a lifetime, all aspects of this transaction require considerable analysis and investigation by Buyer before closing
183title to the Property. While the Broker(s) and Salesperson(s) who are involved in this transaction are trained as licensees under the
184License Law of the State of New Jersey, they readily acknowledge that they have had no special training or experience with respect
185to the complexities pertaining to the multitude of structural, topographical and environmental components of this Property. For
186example, and not by way of limitation, the Broker(s) and Salesperson(s) have no special training, knowledgeor experience with regard
187to discovering and/or evaluating physical defects including structural defects, roof, basement, mechanical equipment such as heating,
188air conditioning, electrical systems, sewage, plumbing, exterior drainage, termite and other types of insect infestation or damage
189caused by such infestation. Moreover, the Broker(s) and Salesperson(s) similarly have no special training, knowledge or experience
190with regard to evaluation of possible environmental conditions which might affect the Property pertaining to the dwelling such as the
191existence of radon gas, formaldehyde gas, airborne asbestos fibers, toxic chemicals, underground storage tanks, lead, mold or other
192pollutants in the soil, air or water.
194(b) Radon Testing and Reports
195If the Property has been tested for radon, Seller agrees to provide the Buyer, at the time this Agreement is entered into, with
196a copy of the results of the radon test and evidence of any subsequent radon mitigation or treatment of the Property. Buyer shall have
197the right to conduct a radon inspection/test as provided in paragraph (c) below.
199(c) Buyer’s Rights To Inspections
200
The Buyer acknowledges that the Property is being sold in an “AS I S ’ condition and that this Agreement is entered into based
201upon the knowledge of the Buyer as to the value of the land and whatever buildings are upon the Property, and not on any
202representation made by the Seller, the named Broker(s) or their agents as to character or quality. Therefore, the Buyer. at the Buyer’s
203sole cost and expense, is granted the right to have the dwelling and all other aspects of the Property, inspected and evaluated by
204“qualified inspectors” (as the term is defined in paragraph (f) below) for the purpose of determining the existence of any physical
205defects or environmental conditions such as outlined above. If Buyer chooses to make the inspections referred to in this paragraph,
206such inspections must be completed. and written reports must be furnished to the Seller listed in Section 1 and Broker(s) listed in
207
Section 26 of this Agreement within
calendar days after the end of the Attorney Review Period set forth in Section 24
208of this Agreement. If Buyer shall fail to furnish such written reports to the Seller and Brokercs) within the time period specified in
209this paragraph, this contingency clause shall be deemed waived by Buyer, and the Property shall be deemed acceptable by Buyer. The
210time period for furnishing the inspection reports is referred to as the “Inspection Time Period.”
211
212(d) Responsibilities to Cure
21 3If any physical defects, or environmental conditions are reported by the inspectors to the Seller within the Inspection Time
214Period, the Seller shall then have seven (7) calendar days after the receipt of such reports to notify the Buyer in writing that the Seller
215shall correct or cure any of the defects set forth in such reports. If Seller shall fail to notify Buyer of Seller’s agreement to so cure
216and correct, such failure to so notify shall be deemed to be a refusal by Seller to cure or correct such defects. If Seller shall fail to
217agree to cure or correct such defects within said seven (7) day period, or if any part of the dwelling is found to be located within a
218flood hazard area, or if the environmental condition at the Property is incurable and is of such significance as to unreasonably
219endanger the health of the Buyer, the Buyer shall then have the right to void this Contract by notifying the Seller in writing within
220seven (7) calender days thereafter. If Buyer shall fail to void this Contract within the seven (7) day period, the Buyer shall have waived
221his right to cancel this Contract and this Contract shall remain in full force, and Seller shall be under no obligation to correct or cure
222any of the defects set forth in the inspections. If Seller shall agree to correct or cure such defects, all such repair work shall be
223completed by Seller prior to the closing of title.
NJAR Form-118-2/02 Page 4 of 6
224(e) Flood Hazard Area (delete if not applicable)
225Buyer acknowledges THAT the Property is within a flood hazard area, and Buyer waives Buyer’s right to void this Agreement for
226such reason.
227
228(f)Qualifications of Inspectors
229 Where the term “qualified inspectors” is used in this Contract, it is intended to refer to persons who are licensed by the State of
230New Jersey for such purpose or who are regularly engaged in the business of inspecting residential properties for a fee and who
231generally maintain good reputations for skill and integrity in their area of expertise.
232
23321. NOTICES:
234All notices as required in this Contract must be in writing. All notices shall be by certified mail, by telegram, telefax or by
235delivering it personally. The telegram, certified letter or telefax will be effective upon sending. The personal delivery will be effective
236upon delivery to the other party. Notices to the Seller shall be addressed to the address that appears on line fifteen (15) of this
237Contract. Notice to the Buyer shall be addressed to the address that appears on line seven (7) of this Contract.
238
23922. MEGAN’S LAW STATEMENT
240UNDER NEW JERSEY LAW, THE COUNTY PROSECUTOR DETERMINES WHETHER AND HOW TO
241PROVIDE NOTICE OF THE PRESENCE OF CONVICTED SEX OFFENDERS IN AN AREA. IN THEIR
242PROFESSIONAL CAPACITY, REAL ESTATE LICENSEES ARE NOT ENTITLED TO NOTIFICATION BY THE
243COUNTY PROSECUTOR UNDER MEGAN’S LAW AND ARE UNABLE TO OBTAIN SUCH INFORMATION FOR
244YOU. UPON CLOSING, THE COUNTY PROSECUTOR MAY BE CONTACTED FOR SUCH FURTHER
245INFORMATION AS MAY BE DISCLOSABLE TO YOU.
246
24723. NOTICE ON OFF-SITE CONDITIONS: (Applicable to all resale transactions)
248PURSUANT TO THE NEW RESIDENTIAL CONSTRUCTION OFF-SITE CONDITIONS DISCLOSURE ACT,
249P.L. 1995, C. 253, THE CLERKS OF MUNICIPALITIES IN NEW JERSEY MAINTAIN LISTS OF OFF-SITE
250CONDITIONS WHICH MAY AFFECT THE VALUE OF RESIDENTIAL PROPERTIES IN THE VICINITY OF THE
251OFF-SITE CONDITION. PURCHASERS MAY EXAMINE THE LISTS AND ARE ENCOURAGED TO
252INDEPENDENTLY INVESTIGATE THE AREA SURROUNDING THIS PROPERTY IN ORDER TO BECOME
253FAMILIAR WITH ANY OFF-SITE CONDITIONS WHICH MAY AFFECT THE VALUE OF THE PROPERTY. IN
254CASES WHERE A PROPERTY IS LOCATED NEAR THE BORDER OF A MUNICIPALITY, PURCHASERS MAY
255WISH TO ALSO EXAMINE THE LIST MAINTAINED BY THE NEIGHBORING MUNICIPALITY.
256
25724. ATTORNEY REVIEW CLAUSE:
258(1) Study by Attorney
259The Buyer or the Seller may choose to have an attorney study this Contract. If an attorney is consulted, the attorney must
260complete his or her review of the Contract within a three-day period. This Contract will be legally binding at the end of this three-
261day period unless an attorney for the Buyer or the Seller reviews and disapproves of the Contract.
262
263
(2) Counting the Time
264
You count the three days from the date of delivery of the signed Contract to the Buyer and Seller. You do not count Saturdays,
265Sundays or legal holidays. The Buyer and the Seller may agree in writing to extend the three-day period for attorney review.
267(3) Notice of Disapproval
268
If an attorney for the Buyer or the Seller reviews and disapproves of this Contract, the attorney must notify the REALTOR”(S)
269and the other party named in this Contract within the three-day period. Otherwise this Contract will be legally binding as written.
270The attorney must send the notice of disapproval to the REALTOR@(S)by certified mail, by telegram, or by delivering it personally.
271The telegram or certified letter will be effective upon sending. The personal delivery will be effective upon delivery to the
272REALTOR@(S)office. The attorney may also, but need not, inform the REALTOR@(S)of any suggested revision(s) in the Contract
273that would make it satisfactory.
274
27525. ENTIRE AGREEMENT; PARTIES LIABLE:
276This Agreement contains the entire agreement of the parties. No representations have been made by any of the parties, the
277Broker(s) or hishedtheir agents except as set forth in this Agreement. This Agreement is binding upon all parties who sign it and all
278who succeed to their rights and responsibilities.
279
28026. BROKER’S COMMISSION:
281The commission, in accord with the previously executed listing agreement, shall be due and payable at the time of actual closing
282of title and payment by Buyer of the purchase consideration for the Property. The Seller hereby authorizes and instructs the Buyer’s
283attomey, or the Buyer’s title insurance company or whomever is the disbursing agent to pay the full commission as set forth below to
284the below mentioned BrokeR/Brokers out of the proceeds of sale prior to the payment of any such funds to the Seller. Buyer consents
285to the disbursing agent making the said disbursements.
286
COMMISSION IN ACCORD WITH PREVIOUSLY EXECUTED LISTING
287
AGREEMENT, LESS PARTICIPATING BROKER’S COMMISSION (IFANY)
288Listing Broker
290Address and Telephone #
292
Participating Broker
Commission
293
294Address and Telephone #
29627. FAILURE OF BUYER OR SELLER TO SETTLE:
297In the event the Seller willfully fails to close title to the Property in accordance with this Contract, the Buyer may commence any
298legal or equitable action to which the Buyer may be entitled. In the event the Buyer fails to close title in accordance with this Contract,
299the deposit monies paid on account, at the Seller’s option, shall be paid over to the Seller as liquidated damages. In the alternative,
300the Seller may commence an action for damages it has suffered, and, in such case, the deposit monies paid on account of the purchase
NJAR Form-l1&2K)2
Page 5 of 6
301price shall be applied against such damages. Liquidated damages means the Seller will keep the money paid on account and not
302commence any legal action for the Buyer’s failure to close title. In the event the Seller breaches this Contract, Seller will, nevertheless,
303be liable to the Broker for commissions as otherwise set forth in this Contract.
304
30528. CONSUMER INFORMATION STATEMENTACKNOWLEDGMENT
306By signing below the sellers and purchasers acknowledge they received the Consumer Information Statement on New Jersey Real
307Estate Relationships from the brokerage firms involved in this transaction prior to the first showing of the property.
308
309
29. DECLARATION OF LICENSEE BUSINESS RELATIONSHIP(S):
310
(a)
,(name of firm)AND
311
312
(name(s) of licensee(s)), AS ITS AUTHORIZED
313REPRESENTATIVE(S),ARE WORKING IN THIS TRANSACTION AS (choose one) 0 SELLER’S AGENTS
3140 BUYER’S AGENTS a DISCLOSED DUAL AGENTS 0 TRANSACTION BROKERS.
315
316
(b) INFORMATION SUPPLIED BY
(name of other firm)
317
HAS INDICATED THAT IT IS OPERATING IN THIS TRANSACTION AS A (choose one) 0 SELLER’S AGENT
318
0 BUYER’S AGENT
0 DISCLOSED DUAL AGENT
0 TRANSACTION BROKER.
319
32030. NEW CONSTRUCTION RIDER:
321If the property being sold consists of a lot and a detached single family home (the “House”) to be constructed upon the lot by
322the Seller, the “Rider To Contract of Sale of Real Estate - New Construction” has been signed by Buyer and Seller and is appended
323to and made a part of this Agreement.
324
32531. ADDITIONAL CONTRACTUAL PROVISIONS (if any):
343
344
345
348
349
350
35832. INDEX:
359
I . PURCHASE AGREEMENT &
13. NI HOTELAND MULTIPLEDWELLING IHEALTH &
23. OFF-SITE CONDITIONS
360
PROPERTY DESCRIPTION
SAFETY ACT
24. AlTORNEY REVIEW CLAUSE
2. PURCHASE PRICE
14. NO ASSIGNMENT
25. ENTIRE AGREEMENT:
361
3. MANNER OF PAYMENT
IS.RISK OF LOSS
PARTIES LIABLE
4. BUYER FINANCIALLY ABLE
16.ADJUSTMENTS AT CLOSING:
26. BROKER’S COMMISSION
362
TO CLOSE
RIGHTS TO POSSESSION
27. FAILURE OF BUYER OR SELLER
363
S. ACCURATE DISCLOSURE OF
17. MAINTENANCE & CONDITION
TO SETTLE
SELLING PRICE
OF PROPERTY
28. CONSUMER INFORMATION
364
6 TENANTS, IF ANY
I R . LEAD-BASED PAINT
STATEMENTACKNOWLEDGMENT
7. QUALITY OF TITLE
DOCUMENT ACKNOWLEDGMENT
29. DECLARATION OF LICENSEE BUSINESS
365
8. BUILDING & ZONING LAWS
19. LEAD-BASED PAINT
RELATIONSHIP
366
9. ITEMS INCLUDED IN SALE
CONTINGENCY CLAUSE
30. NEW CONSTRUCTION RIDER
IO.ITEMS EXCLUDED FROM SALE
20. INSPECTION CONTINGENCY CLAUSE
31. ADDITIONAL CONTRACTUAL PROVISIONS (IF ANY)
367
1 I.ASSESSMENTS
2 I . NOTICES
32. INDEX
12. FINAL INSPECTION
22. MEGAN’S LAW STATEMENT
368
369IN THE PRESENCE OF:
371
(L.S.)
372
Date
BUYER
373
374
375
376
SELLER
377
378
379
NJAR Form-118-2/02 Page 6 of 6
Filling out the New Jersey Association of REALTORS® Standard Form of Real Estate Contract requires attention to detail and an understanding of the agreement you're entering into. This form, designed for the sale of a one to four family residential property or vacant one family lots, ensures that all terms of the sale are clearly outlined and agreed upon by both the buyer and seller. Below are steps to guide you through the process. It's recommended to consult with an attorney during the three-day attorney review period to ensure that your rights are protected and the contract meets your needs.
After completing these steps, your real estate contract will be ready for review by an attorney. Remember, this contract will become legally binding after the three-business-day attorney review period unless either party's attorney disapproves of the contract. Careful completion and review of this form are crucial to a successful real estate transaction.
What is the purpose of the New Jersey Association of Realtors Standard Form of Real Estate Contract?
This form is specifically designed for the sale of one to four family residential properties or vacant one-family lots in New Jersey. Its purpose is to outline the agreed upon terms and conditions between the buyer and seller, including but not limited to the purchase price, manner of payment, and property description. It ensures that the sale process is conducted fairly and legally, under the guidelines established by the New Jersey Association of Realtors.
Can this contract be used for properties outside of one to four family residential properties?
No, the New Jersey Association of Realtors Standard Form of Real Estate Contract is exclusively intended for the sale of one to four family residential properties or vacant one-family lots. For properties that fall outside of these categories, such as commercial properties or multi-family units exceeding four families, a different type of contract would be required.
What is the attorney review clause mentioned in the contract?
The attorney review clause provides that either the buyer or the seller has the right to have the contract reviewed by an attorney within three business days of signing. During this period, an attorney can approve the contract as is, disapprove it, or suggest modifications. This clause is a protection for both parties, ensuring they have the opportunity to fully understand the legal implications of the contract before it becomes legally binding.
How is the purchase price and method of payment detailed in the contract?
The contract specifies the total purchase price agreed upon by the buyer and seller. It breaks down the manner of payment into a deposit made by the buyer upon signing, any additional deposit to be made by a specified date, and the balance of the purchase price to be paid at closing. Information regarding the holding of deposit monies in an escrow account and the terms regarding mortgage contingencies for the buyer is also detailed, ensuring clarity and mutual understanding of financial obligations.
Filling out the New Jersey Association of Realtors Standard Form of Real Estate Contract requires careful attention to detail. A common mistake is incorrectly or incompletely filling out personal information. This includes names, addresses, and social security numbers for both buyers and sellers. Errors or omissions in this area can lead to significant delays or issues in the processing of the contract.
Another area where people often err is in the description of the property being sold. It is crucial to accurately enter the property address, the lot and block number as shown on the municipal tax map, and the approximate size of the lot. Mistakes here can lead to legal complications regarding the exact property being transacted.
Incorrectly stating the purchase price and manner of payment is yet another mistake. The total purchase price must be clearly written without any ambiguity. Additionally, the breakdown of the deposit, additional deposit, and balance of the purchase price should be correctly detailed, specifying the forms of payment accepted (cash, check, etc.).
A significant error made by parties is neglecting the contingency clauses, particularly regarding the buyer obtaining a mortgage. It is imperative to specify the terms under which the buyer is applying for a mortgage, including the amount, type (F.H.A., V.A., Conventional, A.R.M.), and the agreed points. Failure to detail these correctly can cause misunderstandings and disputes if financing does not proceed as anticipated.
Not properly addressing the attorney review clause is a critical mistake. This contract becomes legally binding after three business days unless an attorney disapproves it within that time. Parties often overlook the importance of this clause, either by not consulting an attorney within the specified time frame or by failing to understand the consequences of the clause. This oversight can lead to being bound by terms not fully understood or agreed upon.
Last but certainly not least, inaccuracies in listing included and excluded items can lead to disputes at or after closing. It's important to be exhaustive when detailing what is included in the sale (like fixtures and appliances) and what is excluded. Assumptions without clear documentation in this section of the contract can result in disagreements and potential legal issues post-closing.
When engaging in the sale or purchase of real estate property, especially in New Jersey, utilizing the New Jersey Association of REALTORS® Standard Form of Real Estate Contract (NJAR) form is common. This document provides a structured approach for parties to detail the terms of their agreement concerning one to four family residences or vacant one-family lots. However, to complete a real estate transaction comprehensively and comply with local, state, and federal regulations, several other forms and documents are often used in conjunction with the NJAR form. These documents ensure that the transaction is legitimate, transparent, and meets all legal obligations.
Each of these documents plays a vital role in a real estate transaction. They offer protections and provide essential information to both the buyer and seller, ensuring a clear understanding of the property's condition, the expectations of each party, and the steps required to successfully close the sale. Through the meticulous preparation and review of these documents, both parties can confidently navigate the complexities of the real estate process, leading to a more secure and satisfactory outcome for everyone involved.
The Residential Lease Agreement is akin to the NJAR Real Estate Contract in that both delineate the terms under which a residential property is lawfully used, albeit for different purposes. While the real estate contract focuses on the sale and purchase conditions of properties, a lease agreement outlines the terms under which a tenant agrees to rent a residential property from a landlord for a specified time. Both documents include detailed information about the parties involved, payment arrangements, and property descriptions, ensuring clear communication and legal protection.
A Purchase and Sale Agreement for commercial properties, similarly, involves the exchange of real property, but focuses on commercial rather than residential premises. Like the NJAR form, it serves as a legally binding document between buyer and seller, specifying terms including purchase price, deposit amounts, and information on closing conditions. However, it delves into complexities relevant to commercial transactions such as zoning compliance, environmental reports, and tenant leases that aren't typically part of residential contracts.
Property Deed Documents, though different in function, share similarities with the NJAR Real Estate Contract as they both concern the transfer of property ownership. While the NJAR contract facilitates the agreement to sell and buy property between parties, a deed document is the legal instrument that actually transfers ownership rights from the seller to the buyer. Both documents contain critical property and party identification details and must be handled with precision to ensure legal validity.
The Home Inspection Report is indirectly related to the NJAR Real Estate Contract. This report is produced after a professional inspection of the property intended for sale. While it's not a contract, its findings can significantly impact the real estate transaction outlined by the NJAR agreement. It details the property's condition and may lead to renegotiations of terms within the contract, such as price adjustments or seller mandates to fix certain issues before the sale proceeds.
The Mortgage Loan Agreement shares a connection with the NJAR Real Estate Contract since it outlines the financing details that enable the buyer to purchase the property. This agreement is between the buyer and the lender, specifying loan amounts, repayment schedule, interest rates, and other financial conditions. In real estate transactions requiring mortgages, the NJAR contract is often contingent upon the buyer securing this financing, underscoring the interdependence of the two documents.
Title Insurance Policies are integral to the real estate transaction process, offering protection against future claims or legal issues that could arise concerning property ownership. Although it's a post-contract item, it complements the NJAR Real Estate Contract by ensuring the buyer and lender are safeguarded against losses due to defects in title that were not discovered during the sale process. Its existence supports the claim of clear title promised in the real estate contract.
An Escrow Agreement is crucial when there are conditions that need to be fulfilled after the signing of the NJAR Real Estate Contract but before the transaction is completed, such as repairs or permit approvals. It involves a third party holding assets—often funds—on behalf of the other two parties until certain conditions are met. This arrangement ensures that the buyer and seller meet their obligations in a secure and orderly fashion, essential for maintaining trust throughout the transaction process.
Home Warranty Agreements, while ancillary to the actual sale, often accompany real estate transactions to provide the buyer with protection against the cost of unforeseen repairs for specific home systems and appliances. Like the NJAR Real Estate Contract, a home warranty agreement provides peace of mind by detailing specific terms and conditions—though in this case, for post-sale protection rather than the sale itself.
The Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards form is another document related to real estate transactions, particularly for homes built before 1978. Its necessity in transactions involving older homes parallels the NJAR contract requirement, focusing on ensuring that buyers are informed about potential lead paint hazards before finalizing a purchase. This disclosure promotes transparency and safety in residential sales.
Finally, the Amendment to Contract document shares a vital function with the NJAR Real Estate Contract by allowing both parties to modify the agreement post-initial signing if conditions change or new information arises. This might include changes to the closing date, purchase price, or terms of sale. Both documents are foundational to ensuring that the agreement accurately reflects the parties' intentions and the reality of the transaction.
When filling out the NJAR Real Estate Contract form, it's crucial to approach the process with attention to detail and an understanding of the document's importance. Here are some dos and don'ts to guide you through the process:
Filling out the NJAR Real Estate Contract form carefully and completely is essential for a smooth real estate transaction. Taking your time to do it right can prevent legal issues and conflicts down the line.
Understanding the intricacies of any real estate contract is crucial for both buyers and sellers as they navigate the process of a property transaction. Misinterpretations can lead to confusion, legal complications, or missed opportunities. The New Jersey Association of Realtors® Standard Form of Real Estate Contract (NJAR contract form) is no exception. Here are ten common misconceptions about this form:
It’s only for real estate professionals: Some people believe the NJAR contract form is designed exclusively for use by real estate professionals. While it’s true that real estate agents and brokers commonly utilize this form, it is also accessible to buyers and sellers. The intention is to ensure a standard level of practice and to protect all parties involved in a real estate transaction.
It’s overly complex for no reason: The detailed nature of the NJAR contract form might seem daunting, but it serves a purpose. Its comprehensiveness is to ensure clarity and thoroughness in real estate transactions, reducing the risk of disputes or misunderstandings between parties.
Legal representation is not necessary: Even though the contract aims to be clear and straightforward, seeking legal counsel is advised. Legal professionals can provide valuable insights, identify potential issues, and tailor the contract to specific needs or concerns.
It’s final once signed: A significant aspect of the NJAR contract form is the attorney review clause, allowing both parties a period—typically three business days—to have attorneys review and possibly disapprove or suggest modifications to the contract.
It only covers the basics: This form is not just about the sale price and property description. It includes provisions on payment methods, buyer’s financial arrangements, title quality, possible contingencies (e.g., inspections, financing), and more, offering a comprehensive framework for the transaction.
All cash offers don't need the form: Regardless of the payment method, the NJAR contract form provides a structured transaction process, ensuring all legal and procedural requirements are met, even in all-cash offers.
Modifications are not allowed: Both parties can negotiate terms, and amendments can be made to the contract as long as both parties agree and endorse the changes.
It guarantees the condition of the property: While the form includes sections on property condition, sellers often sell properties “as is.” Buyers are encouraged to conduct inspections; the contract provides a framework for addressing any issues discovered.
Deposit details are predetermined and non-negotiable: The amount, handling, and contingencies related to deposits are negotiable and should be clearly outlined in the contract to protect all involved parties.
It serves as an immediate transfer of property: Signing the contract does not immediately transfer ownership. It outlines the terms under which the sale will proceed toward closing, where the actual transfer of ownership occurs.
Each point of the NJAR contract form is designed with the intention of protecting both the buyer and seller, while providing a clear path forward for the real estate transaction. Understanding the form’s provisions, possibly with the assistance of a legal professional, ensures that parties are well-informed and their interests are safeguarded throughout the process.
Understanding the scope of the NJAR Real Estate Contract is crucial: This form is designed exclusively for the sale of one to four family residential properties or vacant one-family lots in New Jersey. It's tailored to ensure simplicity and specificity in these transactions, reinforcing its suitability only within predefined parameters.
A crucial component of this agreement is the Attorney Review Clause. Both parties have the opportunity, within three business days, to consult with an attorney who can review and potentially cancel the contract if it is not in their best interest. This clause provides a safety net, offering peace of mind and a chance to rectify any undesirable terms before the contract becomes legally binding.
The inclusion of an escrow account for deposit monies highlights the importance of safeguarding funds until the deal's closure. It is a measure that ensures the buyer's deposit is secure and that the funds will be properly allocated upon completing the sale, adding an extra layer of financial protection for both parties.
The contract outlines specific financing terms and conditions, including the buyer’s commitment to secure a mortgage and the associated timelines. This clearly laid out process helps both sides understand the financial undertakings required and helps mitigate risks of misunderstanding or default on purchase commitments.
Under the Quality of Title section, it is noted that the sale is subject to easements, restrictions, and zoning ordinances, emphasizing the necessity for buyers to conduct thorough due diligence. The clause concerning the option to void the contract if significant issues are discovered is particularly noteworthy, as it emphasizes the protection of the buyer's interests concerning property usability.
Maintenance and quality assurances are provided up until the point of sale, with the seller responsible for ensuring that the property, including all included appliances, is in proper working order at the time of closing. This commitment underscores the expectation of quality and reliability in the transaction, providing assurance to the buyer regarding their investment's condition.
Environmental concerns, particularly lead-based paint, are addressed with specific clauses that allow for inspection and risk assessment. This consideration is especially crucial for properties built before 1978, highlighting the contract’s attention to health and safety issues and the possible impact on the transaction.
The importance of final inspections before closing can't be overstated, ensuring the property's condition aligns with the terms agreed upon. This step offers a final verification, potentially avoiding disputes post-sale.
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