: August 2009

Buying a Home at the Jersey Shore - What You Need to Know...The Contract and Contractual Provisions

Buying a home at the Jersey Shore – What You Should Know…The Contract and Contractual Provisions.

You’ve been out looking at homes with the real estate agent you selected, you’ve got your mortgage lender in place, and you’ve found the perfect home in the perfect community.
 

It’s time to make an offer!  While some agents representing bank owned properties, or builders of new construction homes require their own contracts for a home purchase, most contracts to purchase homes in New Jersey are standard, fill in the blank contracts, approved and supplied by the New Jersey Association of REALTORS® (NJAR).

NJAR


I usually give my buyer clients a blank copy of the NJAR Standard Form of Real Estate Contract when we start looking at homes.  If your agent doesn’t do this, ask!  This will give you time to review the nearly 8 page document, and ask questions you might have.
 
Briefly, here’s a review of the important contractual provisions.  This summary is a guide to the standard contract.  Once you have a copy of your contract of sale, before it’s submitted to the seller, review each section with your real estate agent or an attorney.  Get answers to any questions you have at this time!
 

NJAR Standard Contract of Sale
(This is not offered as legal advice; consult an attorney for legal advice on any contract to purchase.)

The Cover Page is a general notice to both the buyer and seller.  It again stipulates how the real estate agent submitting the contract is working, as a buyer’s agent, seller’s agent, disclosed dual agent or a transaction broker (representing neither the buyer nor seller).
 
It also outlines in the importance of using an attorney because the contract determines your rights, risks and obligations.
 
Here we run into a difference between north Jersey and south Jersey.  Attorneys are almost always used in north Jersey.  But once you get south, beginning in the southern sections of Ocean County, attorneys are seldom used.  (More on this in the next installment.)

Jersey Shore

Sections 1 through 3 of the Contract of Sale includes the sale price, buyer and seller information, the address and description of the property, the amount of your deposit (escrow), in whose account that money will be held, the amount of your mortgage, the mortgage commitment date, the type of deed and the closing date.
 
Section 4 requires the buyer to state he/she has the money (including the mortgage) to close the transaction.

Section 7 requires the seller to provide clear title and allows reimbursement to the buyer if clear title cannot be provided.
 
Section 8 is where the buyer and seller state how the property will be used (single family, etc) and that it complies with zoning ordinances.  This section also requires the seller to provide a Certificate of Occupancy.
 
Sections 9 and 10 outline the items included or excluded in the sale (refrigerator, washer, dryer, etc).
 
Sections 18 through 20 include inspection contingency clauses.  The first is Lead-Based Paint.  Any home built prior to 1978 requires the seller to provide a Lead-Based Paint Disclosure form.  If the buyer wishes to have an inspection or risk assessment, that is allowed at the buyers expense. There are strict time frames built into the contract for the inspection and/or risk assessment.  Be sure to review these with your agent.  Failure to comply with any of the dates in this section will forfeit your rights to negotiate a remedy.
 
Section 20 continues the inspection contingency clauses.  More specifically this section provides the time frame for a home inspection.  Again, there are strict time frames built in, and to negotiate repairs you must adhere to the built in time frames.  In the standard contract the only date you can set is the time frame for conducting the home inspection.  Providing the report to the sellers and requesting repairs, must be completed within the time frames in the standard contract or amended in the additional contractual provisions section of the contract.
 
Section 24 explains the attorney review process and Section 26 outlines the broker’s commission and again provides a declaration of business relations for the real estate agents.
 
Section 31 is of particular importance in southern Ocean County.  It outlines the seller’s responsibility for State mandated well testing and certification.
 
Section 35 is for additional contractual provisions.  This section can be used to clarify any of the previous sections, or to cover additional concerns the buyer may have.
 
This is a general review of some of the sections in New Jersey’s Standard Contract to Purchase, used in the sale of most single family homes in New Jersey.  Review the entire contract with your real estate agent and an attorney.

This Contract and Contractual Provisions report is the 4th in a 6 part series for home buyers at the Jersey Shore.

New Jersey Real Estate Agency Relationships
Lenders and Loans
Homes and Communities
The Contract - Contractual Provisions
Offer and Acceptance - Attorney Review
Closing
 

If you’re looking for an Accredited Buyers Representative (ABR®) at the Jersey Shore, give me a call.

Keller Williams Realty – Atlantic Shore
Laura Giannotta, ABR®
609-384-6121
Laura@JerseyShoreViews.com
 
GET YOUR OWN JERSEY SHORE VIEWS!
(Search homes for sale at the NJ Shore)

   

 
 
 
  

     
Comment balloon 1 commentLaura Giannotta • August 25 2009 05:26AM
Buying a Home at the Jersey Shore - What You Need to Know… The…
share
Buying a home at the Jersey Shore – What You Should Know…The Contract and Contractual Provisions. You’ve been out looking at homes with the real estate agent you selected, you’ve got your mortgage lender in place, and you’ve found the perfect home… more
Buying a Home at the Jersey Shore - What You Need to Know… Homes..
share
Buying a home at the Jersey Shore – What you need to know about homes and communities. New Jersey has a long coastline, and most waterfront communities in Monmouth County and south call themselves the Jersey Shore. My Jersey Shore is… more
We Don't Need No Stinking Badges, On Thursday's In Beach Haven!
share
Tomorrow, Thursday and for the 2 additional Thursday’s through the Labor Day 2009 weekend, ‘we don’t need no stinking badges! ’ The Borough of Beach Haven, on Long Beach Island, is making a last ditch effort to attract day trippers and mainland… more
Buying a Home at the Jersey Shore - What You Need to Know… Mortgage…
share
Buying a home at the Jersey Shore? What you need to know about mortgage lenders in New Jersey and mortgage loans Getting a home mortgage loan might seem daunting these days. There are choices you need to make, much like the choices you… more
Denial… And the Walls Come Tumblin' Down… And the Walls… I Guess I…
share
As if I didn’t feel old enough, the death of Les Paul and thinking back to the ‘Summer of Love’ at Woodstock, my good buddie Craig Rutman, the Apex of Real Estate in North Carolina sent me a note. If you don’t know Craig he’s the ActiveRainer.. more
Buying a Home at the Jersey Shore - What You Need to Know… NJ Real…
share
Buying a home at the Jersey Shore? Congratulations…Let’s take a look at some of the things to consider before you sign on the dotted line. New Jersey Real Estate Agency Relationships Lenders and Loans Homes and… more
The 'Hawkin Deli Brings Great NJ Deli to the Jersey Shore!
share
The 'Hawkin Deli in Manahawkin brings real NJ deli taste to the Jersey Shore! While New Jersey might be informally known as the Diner State, we do love our delis. If you grew up in New Jersey, deli sandwiches are a way of life! The '… more
It's Manahawkin's Green Tree Garden Center & Landscaping for All…
share
Green Tree Garden Center and Landscaping in Manahawkin NJ provides area residents with healthy indoor and outdoor plants as well as great landscape design. Located at 1412 Route 72 (just past the WaWa) in Manahawkin I'm always stopping by to… more
Little Egg Harbor Homes for Sale - Housing Market Trends July, 2009
share
Homes for Sale in Little Egg Harbor, NJ Housing Market Trends July, 2009 Fewer homes for sale in Little Egg Harbo r were listed in July, 2009 than any other month this year. That&… more
Homes for Sale in Manahawkin - Housing Market Trends July, 2009
share
Homes for Sale in Manahawkin Housing Market Trends July, 2009 Take a look housing market trends in Manahawkin More homes in Manahawkin were listed in July and fewer sold than in June, and the number of listings to expire also… more