If you’re thinking about selling your home in NJ, you might be wondering where to start, what the steps in the process are, and how to achieve your goals. If this sounds familiar, this post is for you!
The Stages of the Transaction for Sellers
- Once signed by buyers and sellers, the contract is forwarded to the attorneys. Upon receipt of the contract I will contact you to discuss and to answer any questions you may have.
- Both attorneys will send letters to request contract changes. Don’t be alarmed when you see that the Contract is “disapproved”. This is the standard beginning to attorney review.
- Once the changes are agreed-upon, attorney review is concluded and the contract is binding.
Three things you need to know about Attorney Review:
- Attorney Review is not limited to three days, but the first Review letter must be sent within three days or the Contract will be binding as written.
- The Contract is not binding on either party until Attorney Review is concluded.
- Once Attorney Review is concluded any further changes can only be made by mutual consent.
- It is your responsibility to have any municipal inspections (smoke detector certificate, certificate of occupancy) performed and to obtain the certificates.
- If the home has well water, you are required to have a water quality test performed.
- The buyer will arrange for the structural inspection, wood destroying insect inspection and radon gas test.
- Additional testing may include a property sweep to determine if there is an underground oil tank, swimming pool and septic system tests, , asbestos tests, mold tests, ‘level II’ chimney test, lead paint tests.
- The inspection contingency is not intended to apply to minor maintenance items, cosmetic defects, or items which are simply old, if they are in proper working order.
- You are not legally required to make repairs, however if defects are found, and you refuse to address the defects, the buyer may have the right to cancel the Contract and would be entitled to the return of the down payment. In most cases the parties are able to come to a mutually acceptable arrangement.
- In some cases the parties may agree upon monetary credits in lieu of actual repairs. Any such credits must be approved by the buyer’s mortgage lender.
- Back title. It would be helpful if you can provide a copy of the title insurance policy that was issued upon your purchase of the property.
- Mortgage payoffs. My office will obtain payoff statements for any mortgages and lines of credit.
- Walk-through. Performed by the buyers prior to closing. The home should be empty and in broom-clean condition for the walk-through. Visit our blog post on simplifying your moving process.
- All utilities should be active at the time of the walk-through. Do not have the water, gas, or electric service terminated until after the closing.
- Closing Documents. Prior to the scheduled closing date I’ll ask you to visit my office to pre-sign the documents for the closing. If you are out of State I will make arrangements to get the documents to you to sign, notarize and return.
- Closing figures. Prior to the closing we will go over all of the closing figures, including mortgage payoffs, all expenses of the sale, and the final net proceeds.
- At the closing of title, the conveyance documents will be delivered to the buyer’s attorney and the keys to the home will be given to the buyers.
- Your proceeds will be available at the time of closing and may be in the form of a check or a wire transfer of funds directly to your account.
- Although you do not need to be at the closing, you should be available by telephone in case of any last minute issues or questions.
For more information, check out our seller’s handbook at SellersLawyer.com