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If you own a house in New Jersey and are interested in the sale process and the legal obligations for home sellers, you’re in the right place. We’re going to cover what New Jersey law requires for all real estate transactions. It’s common for first time New Jersey home sellers to get in over their heads, as it can be quite complicated.
The only exception is if you sell property for cash, in which case the house is sold as is. We’ll also explain how to avoid some of these other requirements when you sell your house for cash. Here at NJ Cash Buyers, we specialize in simple but fair, all-cash home sales.
Disclosure Obligations
The first of several legal matters that concern New Jersey sellers is the fact that any homeowner must disclose all known issues with the house. These can be positives or negatives, but “a full and accurate disclosure of any material defects” is required for the home sale to be legally binding.
There is a disclosure form, which is a standard form submitted by the seller to keep in the records of any real estate transaction. This actually protects both the seller and prospective buyer, especially in case of any future disputes.
Areas to Cover for Disclosure
There are several property aspects typically covered in a standard disclosure form:
- Structural Elements [Foundations, Walls, Roofs]
- Water, Sewer, & Drainage [Past flooding history or other past water damage, or septic or sewer problems]
- Major Systems [Electrical, Plumbing, & HVAC Systems]
- Environmental Concerns [Black Mold, Lead Paint, Asbestos]
- Pest Infestations [Rodents, Termites, Roaches, Ants, Wasps]
Additionally, you cannot avoid full disclosure even when you sell “as is,” because all that means is the seller doesn’t intend on making repairs. They are still obligated to disclose any known issues with the property.
Paying the Necessary Taxes in New Jersey
When you sell a property in New Jersey, there are a few different property and other taxes to pay. The first concern is typically capital gains taxes. You can have most of those taxes waived, as long as the property sold was your primary residence for at least two of the last five years. Transfer taxes will amount to 1% of the home’s sale price, and ensure that the title and title insurance is transferred to the new buyer.
As long as you don’t owe federal capital gains, you won’t owe state capital gains. The so-called “exit tax” is paid when you move out of the Garden State. It’s actually just a prepayment towards the possible taxes owed on the sale of your home, when you are leaving the state afterwards. When you file your state income tax return, the amount will be settled then, or returned to you if you owe nothing.
The Real Estate Agent
With a traditional sale process, the seller has the option to enlist a real estate agent. Real estate agents can significantly help with marketing your home, as well as help negotiate the sales contract. Most contracts are quite complicated. Realtors are good at bringing many potential buyers, and getting you the highest price for your property.
Prospective buyers typically use real estate agents, too. The thing to remember is that as the seller, you’ll most likely pay both of these New Jersey realtors as part of your closing costs. Realtors are licensed professionals who have the experience to help you with the escrow process, the closing process, and negotiating the sale contract.
The Real Estate Attorney
Real estate transactions are tricky, and you very well may want legal representation. Real estate attorneys can be invaluable in navigating real estate contracts. After you have a sale contract in front of you, there is an attorney review period. The attorney fees are typically worth it, having someone else looking out for your best interests, especially before you sign any contract.
And since any real estate transaction represents a significant sale contract, having a real estate lawyer look over that contract and give you advice would be to your advantage. If you’re the seller, skip the realtor’s fees and hire a real estate lawyer, instead. The attorney will bill you for a few hours, but a realtor’s commission is about 3% of the purchase price of your house!
The Problems With a Traditional Home Sale
New Jersey home buyers want the best sales price on your property, but are also at a disadvantage. Usually buyers are at the mercy of the lenders, in order to secure the mortgage loan to buy the house. Most people don’t realize it’s the lender requirements that make the process take so long and have you jumping through so many hoops!
For example, buyers need to get home inspections, which is why sellers would be smart to get a pre listing inspection done. It’s a really good investment into what you can expect, especially if you’re not aware of very many problems. Otherwise, you could get stuck with inspection contingencies, forcing you to fix any inspection issues before the sale can close.
Alternatively, Sell Fast for Cash
Maybe you have a single family home you’ve been renting out, and it’s in pretty poor condition. Whatever the case, NJ Cash Buyers will make you a fair, all cash offer on any New Jersey property, in “as-is” condition. You can skip the repairs, the home inspections, the real estate agent, and even the closing costs. Choose your own closing date, too!
When you sell your house fast for cash with us, you could have the money from the sale in as little as 7 days. No strings attached, and we don’t charge any fees for our services. There are actually multiple situations in which selling to a cash buyer just makes more sense. Even if you’re in foreclosure, let us step in and help find a solution that benefits all parties involved.
How it Works
You can easily find out how simple and fair our cash buyers are, by getting a free cash offer with no further obligation. All you have to do is fill out this form, including the property address, and one of our cash buyers will be in touch within 24 hours to schedule a visit.
The buyer will be prepared to assess the property with you in detail. This will be the time to inform the buyer of your unique circumstances, and any complications you foresee. The buyer will make you a fair cash offer on the spot! We pay closest to fair market value as possible. This method has become quite popular among homeowners today, and it’s easy to see why.
