Buying or selling a home in New Jersey involves a complex legal process, and having the right documents in place is critical to ensuring a smooth transaction. At Juan C. Velasco, Esq., we assist clients throughout New Jersey with the legal aspects of residential real estate transactions, helping them navigate the required paperwork and avoid potential pitfalls. Below are the key documents you will need when buying or selling residential property in New Jersey.

1. Sales Contract (Purchase Agreement)

The purchase agreement is the foundation of any real estate transaction. It outlines the terms and conditions agreed upon by the buyer and seller, including the purchase price, closing date, contingencies, and responsibilities of both parties. This document should be carefully reviewed and negotiated to protect your interests.

2. Deed

The deed is the legal document that transfers ownership of the property from the seller to the buyer. In New Jersey, the most common type is a bargain and sale deed with covenants, which provides limited warranties to the buyer. The deed must be properly executed, notarized, and recorded with the county clerk's office.

3. Mortgage Documents (For Buyers Using Financing)

If the buyer is obtaining a loan, several mortgage-related documents will be required, including:

• Loan Application & Approval – Buyers must complete a loan application and secure approval from a lender.
• Mortgage Agreement & Promissory Note – These documents outline the terms of the loan, including interest rates, repayment terms, and lender rights.
• Closing Disclosure – This document provides a breakdown of all loan terms and closing costs, which must be reviewed at least three days before closing.

4. Title Documents

A title search ensures that the property is free of liens, claims, or legal issues that could affect ownership. Important title-related documents include:

• Title Report & Title Insurance – The title report discloses any encumbrances, and title insurance protects buyers and lenders from hidden title defects.
• Certificate of Occupancy (if required) – Some municipalities require this to confirm that the property complies with local building codes.

5. Seller’s Disclosure Statement

New Jersey law requires sellers to disclose known material defects about the property. While there is no mandatory form, most sellers complete a Seller’s Property Condition Disclosure Statement, detailing issues such as structural problems, water damage, or environmental hazards.

6. Home Inspection Report

Buyers typically conduct a home inspection before finalizing the sale. The inspection report can identify necessary repairs or safety concerns that may affect the transaction. If issues arise, buyers may negotiate repairs or request credits from the seller.

7. Closing Statement (HUD-1 or ALTA Statement)

This document provides a final breakdown of all financial aspects of the transaction, including the purchase price, loan amounts, closing costs, prorated property taxes, and any outstanding balances. Both parties must review and sign this statement before closing.

8. Real Estate Transfer Tax Forms

New Jersey requires payment of a real estate transfer tax upon sale, with exemptions available for senior citizens, low-income individuals, and certain transactions. The appropriate tax forms must be completed and submitted at closing.



9. Power of Attorney (If Needed)

If the buyer or seller cannot attend closing in person, they may grant a power of attorney to a trusted individual to sign documents on their behalf. This must be legally drafted and notarized.

Get Legal Assistance for Your New Jersey Real Estate Transaction

Ensuring all necessary documents are in order is crucial for a successful home sale or purchase. At Juan C. Velasco, Esq., we provide legal guidance to buyers, sellers, and real estate professionals throughout New Jersey. Our team ensures compliance with state laws and protects our clients’ interests at every step of the process.

If you need assistance with your real estate transaction, contact us today to schedule a consultation.