{"id":219,"date":"2023-09-13T19:39:17","date_gmt":"2023-09-13T19:39:17","guid":{"rendered":"http:\/\/liulawnj.com\/?page_id=219"},"modified":"2026-04-06T21:53:35","modified_gmt":"2026-04-07T02:53:35","slug":"for-buyers","status":"publish","type":"page","link":"https:\/\/liulawnj.com\/?page_id=219","title":{"rendered":"For Buyers"},"content":{"rendered":"\t\t
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Important things to know for the Buyer<\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Contract<\/span><\/h3>
The sales contract<\/span>\u00a0<\/span>outlines the terms and conditions of the real estate transaction. Typically, the contract is prepared by the<\/span>\u00a0<\/span>seller\u2019s real estate broker<\/span>. However, if the seller has no broker, the contract will be prepared by the<\/span>\u00a0<\/span>seller\u2019s attorney<\/span>. In either case, it\u2019s important for the buyer to have a<\/span>\u00a0<\/span>New Jersey real estate attorney<\/span>\u00a0<\/span>review the contract to make sure it isn\u2019t missing any important terms or contain clauses that may hurt the buyer.<\/span><\/div>

In the case of a broker-prepared contract, there is a\u00a0three-day attorney review period<\/span>\u00a0in which both the buyer and the seller must have the contract reviewed by a\u00a0New Jersey real estate attorney<\/span>. If attorney review is not concluded within the three-day period, the seller may\u00a0withdraw<\/span>\u00a0from the contract and place the property back on the market. The three-day review period starts when both the buyer and seller have signed the contract, not when the attorney has received it.<\/p>

Keep in mind that the vast majority of contracts contain\u00a0contingency clauses<\/span>. This means the contract is dependent on something happening first in order for it to be binding on the parties. In New Jersey, real estate contracts are customarily contingent on the buyer\u00a0obtaining a mortgage<\/span>, completing the\u00a0home inspection<\/span>, and\u00a0clearing title<\/span>.<\/p>

The Deposit<\/h4>

In most cases, the\u00a0deposit<\/span>\u00a0(or down payment) on the property is paid within 10 days after the completion of attorney review. The deposit is typically held in the\u00a0seller\u2019s attorney\u2019s escrow account<\/span>\u00a0and will be released to the seller at closing.<\/p>

Scheduling the Closing Date<\/h4>

Keep in mind that the date of the closing as set out in the contract is not an absolute deadline. Rather, it is an\u00a0approximate target date<\/span>\u00a0that allows for flexibility if a party is unable to close on that date or if the lender is unable to issue a mortgage commitment in time. As such, do not arrange for move-in or schedule contractors or deliveries on the target date.\u00a0Typically, you won\u2019t know the exact date and time of your closing until about a week before your target closing date.<\/p>

If the date and time of closing is an extreme priority, a\u00a0time of the essence<\/span>\u00a0clause may be negotiated with the seller\u2019s attorney and incorporated into the contract.<\/p>

The Home Inspection<\/h4>

You\u2019re not required to order a\u00a0home inspection<\/span>\u00a0but it\u2019s highly recommended that you do. When buying a property, there are hundreds of things that can go wrong. Problems with major systems are expensive to fix, especially in older homes. Ask your real estate broker to refer you to a licensed home inspector. Your broker will then arrange for a time for you and the inspector to enter the premises together. It\u2019s important to\u00a0attend the inspection<\/span>\u00a0because oftentimes the inspector will mention issues that may not be in the report.\u00a0You\u2019ll generally have 10-14 days after attorney review to have the inspection completed and submit the results to the seller\u2019s attorney. The seller should then address any\u00a0material defects<\/span>\u00a0by either\u00a0repairing them<\/span>\u00a0or issuing you a\u00a0credit at closing<\/span>.<\/p>

Remember, the vast majority of homes in New Jersey are sold\u00a0\u201cas is.\u201d<\/span>\u00a0The inspection contingency in the contract will only require that the home\u2019s\u00a0major systems<\/span>\u00a0and\u00a0structural integrity<\/span>\u00a0be in\u00a0\u201cgood working order\u201d\u00a0<\/span>\u2013 not new or mint condition.\u00a0The seller is not required to fix\u00a0cosmetic imperfections<\/span>\u00a0or normal\u00a0wear and tear<\/span>.<\/p>

The Mortgage<\/h4>

After you have decided on a lender and completed the mortgage application process, you\u2019ll be provided with a\u00a0Good Faith Estimate (GFE)<\/span>. The GFE\u00a0itemizes the\u00a0fees associated with the loan<\/span>\u00a0and will be provided to you within three business days after submitting your application. Remember, this is only an\u00a0estimate<\/em>\u00a0and not the actual amount you\u2019ll ultimately pay the lender.<\/p>

Make sure your\u00a0rate lock<\/span>\u00a0doesn\u2019t expire before, on the date of, or immediately after the target date of closing. Your rate lock shouldn\u2019t expire for at least a couple weeks until after the anticipated closing date. If the rate expires prior to the actual closing date, you may be required to pay addition fees to extend your rate. In rare circumstances, the option to extend may no longer be available.<\/p>

The Closing<\/h4>

Your\u00a0final closing figure<\/span>\u00a0will need to be made out in the form of a\u00a0certified check<\/span>,\u00a0bank check<\/span>, or\u00a0wire transfer<\/span>\u00a0to either our firm\u2019s attorney escrow account or the title company\u2019s escrow account. The final closing figure is usually not available until the morning of the actual closing. However, in some cases, the bank will be able to provide us with the closing figure a day before the closing. In the event of a delay in receiving the figure on the day of closing, you can write the checks or wire the funds by using the figures from your Good Faith Estimate. Any overage that you pay will be reimbursed to you later.<\/p>

On the morning of the closing or on the day before, you and your real estate agent will perform the\u00a0final walk-thru inspection<\/span>\u00a0of the property. The purpose of the walk-thru is to give the buyer the opportunity to confirm that the condition of the property is the same as it was at the time of the home inspection. It also gives the buyer the chance to determine whether any\u00a0promised repairs<\/span>\u00a0were actually completed by the seller.<\/p>

Closing Costs<\/h4>

As a buyer, you\u2019ll typically be required to pay for:<\/p>