activepdfforms.com
Homepage ⇉ Free Njar Real Estate Contract PDF Template
Outline

Embarking on the journey of buying or selling a residential property marks a significant chapter in one’s life. It entails intricate processes governed by specific regulations and the need for accurate documentation. The New Jersey Association of Realtors® Standard Form of Real Estate Contract, notably crafted for transactions involving one to four family residential properties or vacant lots designated for a single family, emerges as a cornerstone in these transactions. Designed exclusively for situations where a written listing agreement with the seller is already in place, this contract ensures a smooth transition of ownership under the watchful eye of equality and opportunity principles. Binding within three business days, it presents an open window during which consulting an attorney is advisable, allowing for professional review and potential cancellation if deemed necessary. This contract intricately details every facet of the transaction—from the agreement's initiation, defining the roles of buyer and seller, outlining the purchase price and payment method, to specifying the property's physical and legal condition expectations. Moreover, it addresses potential contingencies related to mortgage agreements, property inspections, and unexpected circumstances like lead-based paint hazards, underlining the importance of an understanding grounded in clear, mutual agreements. Such thoroughness ensures clarity and confidence for both parties, guiding them through the complexities of residential property transactions with an authoritative yet supportive hand.

Document Preview

NEW JERSEY ASSOCIATION OF REALTORS@STANDARD FORM OF

 

REAL ESTATE CONTRACT

 

01996 New Jersey Association of REALTORS@,Inc.

 

THIS FORM MAY BE USED ONLY IN THE SALE OFA ONE TO FOUR FAMILY RESIDENTIALPROPERTY OR VACANT ONE FAMILY LOTS.

EQUAL HOUS,NG

REALTOR@THIS FORM IS SUITABLEFOR USE ONLY WHERE THE SELLER HAS PREVIOUSLY EXECUTEDA WRITTEN LISTING AGREEMENT.

O P P O R T U N I T Y

THIS IS A LEGALLY BINDING CONTRACT THAT WILL BECOME FINAL WITHIN THREE BUSINESS DAYS. DURING THIS PERIOD YOU MAY CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND/OR CANCEL THE CONTRACT. SEE SECTION ON ATTORNEY REVIEW FOR DETAILS.

CONTRACT OF SALE

11. PURCHASE AGREEMENT AND PROPERTY DESCRIPTION:

3

 

,Buyer,

 

4

5 SOC.Sec. #SOC.Sec. #

6

7whose address is

8

9AGREES TO PURCHASE FROM

10

 

 

 

 

,Seller,

11

 

 

 

 

 

 

 

 

12

 

 

 

 

 

13

Soc.Sec. #

 

SOCSec. . #

 

14

 

 

 

 

 

15whose address is

16THROUGH THE BROKER(S) NAMED I N THIS AGREEMENT AT THE PRICE AND TERMS STATED BELOW,

17THE FOLLOWING PROPERTY:

18Property Address:

19

Shown on the municipal tax map of

 

 

 

County

 

 

 

 

 

 

 

20

As Lot

 

Block

 

 

Approximate size of lot

 

 

 

 

 

 

21THE WORDS “BUYER” AND “SELLER” INCLUDE ALL BUYERS AND SELLERS LISTED ABOVE.

22

23 2. PURCHASE PRICE: THE TOTAL PURCHASE PRICE IS:$

24

253. MANNER OF PAYMENT

26

(A) Deposit paid by Buyer on signing of this Agreement to 0 Listing Broker or 0 Participating

$

27Broker, by 0 cash or 0 check, for which this is a receipt:

28

29

(B) Additional deposit to be paid by Buyer on or before

 

(date): $

 

30All deposit monies paid by the Buyer shall be held in escrow in the NON-INTEREST

31

BEARING TRUST ACCOUNT of

 

,Escrowee,

32until closing of title, at which time all monies shall be paid over to the Seller. The deposit monies shall

33not be paid over to the Seller prior to the closing of title, unless agreed in writing by both the Buyer and Seller.

34In the event the Buyer and Seller cannot agree on the disbursement of these escrow monies. the Escrowee may

35place the deposit monies in Court requesting the Court to resolve the dispute.

36

37(C) IF PERFORMANCE BY BUYER IS CONTINGENT UPON OBTAINING A MORTGAGE.

38The Buyer agrees to apply immediately for a mortgage loan through any lending institution of the Buyer’s

39choice or the ofice of the Listing Broker or the Participating Broker. The application shall be furnished by the

40Buyer in writing on an application form prescribed by the lending institution to which the application shall be

41submitted. Buyer shall also furnish, in a timely manner. such other documents and information as is usually

42required by said lending institution. Failure of Buyer to comply with the foregoing. in good faith, shall be

43deemed a breach of this Contract of Sale. The amount of mortgage loan required by the Buyer is

44

$

 

 

 

 

 

 

 

 

 

and will be what is commonly known as the

 

 

 

 

 

 

 

 

 

45

(F.H.A.) (V.A.) (Conventional) (A.R.M.)

 

year direct reduction plan with interest at not

46

more than

 

 

 

E/r and not more

 

 

 

 

 

Points. Buyer agrees to pay not

than

 

 

 

 

47

more than __

 

Points. Seller agrees to pay not more than

 

Points.

48IF THE MORTGAGE LOAN HAS NOT BEEN ARRANGED, OR IF THE BUYER HAS NOT

49NOTIFIED SELLER OF BUYER’S DECISION TO COMPLETE THE TRANSACTION

50WITHOUT OBTAINING A MORTGAGE COMMITMENT, ON OR BEFORE

51

 

(Date) THEN EITHER BUYER OR SELLER MAY VOID

52THIS AGREEMENT BY WRITTEN NOTICE TO THE OTHER PARTY. The methbd of notifying

53

the other party shall be in accordance with Section 21 of the Agreement.

$

54

 

 

55(D) BALANCE OF PURCHASE PRICE. The balance of the purchase price shall be paid by cash,

56

certified check or Attomey’s Trust Account check on delivery of a

 

(Type

 

57of Deed). Title to the Property will be free from all claims or rights of others, except as described in Sections

586 , 7 and 8 of this Agreement. The deed shall contain the full legal description of the Property. Payment of the

59balance of the purchase price by Buyer and delivery of the deed and affidavit of title by Seller occur at the

60

“Closing.” The Closing will take place on or before

 

 

,at the office of

61

 

 

or such other place as the Seller and the Buyer may agree. $

62

 

 

 

 

 

63

TOTAL PURCHASE PRICE:

$

64

 

 

 

 

 

654. BUYER FINANCIALLY ABLE TO CLOSE:

66Buyer represents that Buyer has sufficient cash available (together with the mortgage referred to in Section 3) to complete

67this purchase.

NJAR Form-118-2/02 Page 2 Of 6

Buyer’sSeller’s

Initials:Initials:

685. ACCURATE DISCLOSURE OF SELLING PRICE:

69The Buyer and Seller certify that this Contract accurately reflects the gross sale price as indicated on line sixty-three (63) of this

70Contract. The Buyer and Seller UNDERSTANDAND AGREE that THIS INFORMATION SHALL BE DISCLOSED to the

71Internal Revenue Service as required by law.

72

736. TENANTS, IFANY:

74This sale is made subject to the following tenancies. The Seller warrants that these tenancies are not in violation of existing

75Municipal, County, State or Federal rules, regulations or laws.

76NAMELOCATIONRENTSECURITY DEPOSITTERM

77

78

79

807. QUALITY OF TITLE:

81This sale will be subject to easements and restrictions of record, if any, and such state of facts as an accurate survey might disclose.

82Generally, an easement is a right of a person other than the owner of Property to use a portion of the Property for a special purpose. A

83restriction is a recorded limitation on the manner in which a Property owner may use his/her/their Property. The Buyer does not have

84to complete the purchase, however, if any easement, restriction, or facts disclosed by an accurate survey would substantially interfere

85with the use of the Property for residential purposes. The sale will also be made subject to applicable zoning ordinances.

86Title to the Property shall be good, marketable and insurable, at regular rates, by any title insurance company licensed to

87d o business in the State of New Jersey, subject only to the claims and rights described in this section and Section 6. Buyer agrees

88to order title insurance commitment (title search) and survey if necessary and to furnish copies to Seller. In the event Seller’s

89title shall contain any exceptions other than as set forth in this paragraph, Buyer shall notify Seller and Seller shall have 30 days

90within which to eliminate those exceptions. If Seller cannot remove those exceptions, Buyer shall have the option to void this

91Contract or to proceed with closing of title without any reduction in the purchase price. If Buyer elects to void this Contract, as

92provided in the preceding sentence, the deposit money shall be returned to Buyer and Seller shall reimburse Buyer for search and

93

survey expenses not exceeding

dollars.

94

 

 

 

 

 

95

8. BUILDING AND ZONING LAWS:

 

 

96

The Buyer intends to use the Property as a

 

 

family home. The Seller states, to the best of the

97Seller’s knowledge, that this use does not violate any applicable zoning ordinance, building code or other law. The Seller will pay for

98and obtain Certificate of Occupancy, Certificate of Land Use Compliance or other similar document required by law and will arrange

99and pay for all inspections required to obtain such document. SELLER AGREES TO CORRECT ALL VIOLATIONS, AT

100THE SELLER’S OWN EXPENSE, PRIOR TO THE CLOSING OF TITLE.

101

1029. ITEMS INCLUDED IN SALE:

103Gas and electric fixtures, cooking ranges and ovens, hot water heaters, linoleum, T.V. antenna. screens, storm sash, shades, blinds,

104awnings, radiator covers, heating apparatus and sump pump, if any, except where owned by tenants, are included in this sale. All of

105the appliances shall he in working order as of the closing of title. This provision shall not survive closing of title. This means

106that the Seller DOES NOT GUARANTEE the condition of the appliances AFTER the deed and affidavit of title have been

107delivered to the Buyer at the “Closing”. The following items are also specifically included:

108

109

110

11110. ITEMS EXCLUDED FROM SALE:

11511. ASSESSMENTS:

116All confirmed assessments and all unconfirmed assessments which may be imposed by the municipality for public improvements

117which have been completed as of the date of Closing are to be paid in full by the Seller or credited to the Buyer at the Closing. A

118confirmed assessment is a lien (legal claim) against the Property. An unconfirmed assessment is a potential lien (legal claim) which,

119when approved by the appropriate governmental body, will become a legal claim against the Property.

121 12. FINAL INSPECTION:

122Seller agrees to permit the Buyer or the Buyer’s duly authorized representative to examine the interior and exterior of the Property

123at any reasonable time immediately before Closing.

125 13. NEW JERSEY HOTEL AND MULTIPLE DWELLING HEALTH AND SAFETY ACT

126If the New Jersey Hotel and Multiple Dwelling Health and Safety Act applies to the Property, the Seller represents that the

127 Property complies with the requirzments of the Act.

12914. NO ASSIGNMENT

130This Agreement shall not be assigned without the written consent of the Seller. This means that the Buyer may not transfer to

131anyone else his/her/their rights under this Agreement to buy the Property.

13315. RISK OF LOSS:

134The risk of loss or damage to the Property by fire or otherwise, except ordinary wear and tear, is on the Seller until the Closing.

13616. ADJUSTMENTS AT CLOSING; RIGHTS TO POSSESSION:

137Rents, water charges, sewer charges, real estate taxes, interest on any existing mortgage to be assumed by Buyer, and fuel are to

138be apportioned as of the date of actual closing of title. The Buyer shall be entitled to possession of the Property and any rents or profits

139from the Property, immediately upon the delivery of the deed and closing of title. The Seller shall have the privilege of paying off

140any person with a claim or right affecting the Property from the proceeds of this sale at the time of Closing.

14217. MAINTENANCE AND CONDITION OF PROPERTY

143The Seller agrees to maintain the grounds, buildings and improvements, in good condition, subject to ordinary wear and tear. The

144premises shall be in “broom clean” condition and free of debris on the date of Closing. Seller represents that all electrical, plumbing,

145heating and air conditioning systems (if applicable), together with all fixtures included within the terms of the Agreement now work

Buyer’sSeller’s

NJAR Form-118-2/02

Page 3 of 6

Initials:

 

Initials:

146and shall be in proper working order at the time of Closing. Seller further states, that to the best of Seller’s knowledge, there are

147currently no leaks or seepage in the roof, walls or basement UNLESS OTHERWISE INDICATED IN THE ADDITIONAL

148CONTRACTUAL PROVISIONS SECTION (Section 31) OF THIS AGREEMENT. ALL REPRESENTATIONS

149AND/OR STATEMENTS MADE BY THE SELLER, IN THIS SECTION, SHALL NOT SURVIVE CLOSING OF

150TITLE. This means that the Seller DOES NOT GUARANTEE the condition of the premises AFTER the deed and affidavit of

151title have been delivered to the Buyer at the “Closing”.

152

15318. LEAD-BASED PAINT DOCUMENT ACKNOWLEDGMENT (Applies to dwellings built before 1978)

154Buyer acknowledges receipt of the EPA pamphlet entitled “Protect Your Family From Lead In Your Home.” Moreover, ;I copy of

155a document entitled “Disclosure of Information and Acknowledgment Lead-Based Paint and Lead-Based Paint Hazards” has been

156fully completed and signed by Buyer. Seller and Broker(s) and is appended to this Agreement as Addendum “A“ and is part of

157this Agreement.

158

15919. LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARD CONTINGENCY CLAUSE:

160(This paragraph is applicable to all dwellings built prior to 1978. The law requires that unless the Buyer and Seller

161agree to a longer or shorter period, Seller must allow Buyer a ten-day (10) period within which to complete an inspection

162and/or risk assessment of the Property. Buyer, however, has the right to waive this clause in its entirety.)

163This Agreement is contingent upon an inspection and/or risk assessment (the “Inspection”) of the Property by a certified

164inspector/risk assessor for the presence of lead-based paint and/or lead-based paint hazards. The Inspection shall be ordered and

165obtained by the Buyer at the Buyer’s expense, within ten (10) calendar days after the termination of the Attorney Review period set

166forth in Section 24 of this Agreement (the “Completion Date”). If the Inspection indicates that no lead-based paint or lead-based paint

167 hazard is present at the Property, this contingency clause shall be deemed to be null and void. If the Inspection indicates that lead-

168 based paint or lead-based paint hazard is present at the Property, this contingency clause will terminate at the time set forth above

169 unless within (5j days from the Completion Date, the Buyer delivers a copy of the inspection and/or risk assessment report to the

170 Seller and Broker(s) and (a) advises Seller and Broker(s) ,in writing, that Buyer is voiding this Agreement; or (b) delivers to Seller

171 and Broker(s) a written amendment (the “Amendment”) to this Agreement listing the specific existing deficiencies and corrections

172 required by the Buyer. The Amendment shall provide that the Seller agrees to (a) correct the deficiencies; and (b) furnish the Buyer

173with a certification from a certified inspector/risk assessor that the deficiencies have been corrected, before the date of Closing. The

174

Seller shall have

 

days after receipt of the Amendment to sign and return it to Buyer or send a written counter-proposal

175to Buyer. If Seller does not sign and return the Amendment or fails to offer a counter-proposal, this Agreement shall be null and void.

176

In the event Seller offers a counter-proposal, Buyer shall have

 

days after receipt of the counter-proposal to accept

177it. If the Buyer fails to accept the counter-proposal within the time limit provided, this Agreement shall be null and void.

17920. INSPECTION CONTINGENCY CLAUSE:

180(a) Responsibilities of Home Ownership

181The Buyer and Seller acknowledge and agree that because the purchase of a home is one of the most significant investments

182a person can make in a lifetime, all aspects of this transaction require considerable analysis and investigation by Buyer before closing

183title to the Property. While the Broker(s) and Salesperson(s) who are involved in this transaction are trained as licensees under the

184License Law of the State of New Jersey, they readily acknowledge that they have had no special training or experience with respect

185to the complexities pertaining to the multitude of structural, topographical and environmental components of this Property. For

186example, and not by way of limitation, the Broker(s) and Salesperson(s) have no special training, knowledgeor experience with regard

187to discovering and/or evaluating physical defects including structural defects, roof, basement, mechanical equipment such as heating,

188air conditioning, electrical systems, sewage, plumbing, exterior drainage, termite and other types of insect infestation or damage

189caused by such infestation. Moreover, the Broker(s) and Salesperson(s) similarly have no special training, knowledge or experience

190with regard to evaluation of possible environmental conditions which might affect the Property pertaining to the dwelling such as the

191existence of radon gas, formaldehyde gas, airborne asbestos fibers, toxic chemicals, underground storage tanks, lead, mold or other

192pollutants in the soil, air or water.

194(b) Radon Testing and Reports

195If the Property has been tested for radon, Seller agrees to provide the Buyer, at the time this Agreement is entered into, with

196a copy of the results of the radon test and evidence of any subsequent radon mitigation or treatment of the Property. Buyer shall have

197the right to conduct a radon inspection/test as provided in paragraph (c) below.

199(c) Buyer’s Rights To Inspections

200

The Buyer acknowledges that the Property is being sold in an “AS I S ’ condition and that this Agreement is entered into based

201upon the knowledge of the Buyer as to the value of the land and whatever buildings are upon the Property, and not on any

202representation made by the Seller, the named Broker(s) or their agents as to character or quality. Therefore, the Buyer. at the Buyer’s

203sole cost and expense, is granted the right to have the dwelling and all other aspects of the Property, inspected and evaluated by

204“qualified inspectors” (as the term is defined in paragraph (f) below) for the purpose of determining the existence of any physical

205defects or environmental conditions such as outlined above. If Buyer chooses to make the inspections referred to in this paragraph,

206such inspections must be completed. and written reports must be furnished to the Seller listed in Section 1 and Broker(s) listed in

207

Section 26 of this Agreement within

 

calendar days after the end of the Attorney Review Period set forth in Section 24

208of this Agreement. If Buyer shall fail to furnish such written reports to the Seller and Brokercs) within the time period specified in

209this paragraph, this contingency clause shall be deemed waived by Buyer, and the Property shall be deemed acceptable by Buyer. The

210time period for furnishing the inspection reports is referred to as the “Inspection Time Period.”

211

212(d) Responsibilities to Cure

21 3If any physical defects, or environmental conditions are reported by the inspectors to the Seller within the Inspection Time

214Period, the Seller shall then have seven (7) calendar days after the receipt of such reports to notify the Buyer in writing that the Seller

215shall correct or cure any of the defects set forth in such reports. If Seller shall fail to notify Buyer of Seller’s agreement to so cure

216and correct, such failure to so notify shall be deemed to be a refusal by Seller to cure or correct such defects. If Seller shall fail to

217agree to cure or correct such defects within said seven (7) day period, or if any part of the dwelling is found to be located within a

218flood hazard area, or if the environmental condition at the Property is incurable and is of such significance as to unreasonably

219endanger the health of the Buyer, the Buyer shall then have the right to void this Contract by notifying the Seller in writing within

220seven (7) calender days thereafter. If Buyer shall fail to void this Contract within the seven (7) day period, the Buyer shall have waived

221his right to cancel this Contract and this Contract shall remain in full force, and Seller shall be under no obligation to correct or cure

222any of the defects set forth in the inspections. If Seller shall agree to correct or cure such defects, all such repair work shall be

223completed by Seller prior to the closing of title.

NJAR Form-118-2/02 Page 4 of 6

Buyer’sSeller’s

Initials:Initials:

224(e) Flood Hazard Area (delete if not applicable)

225Buyer acknowledges THAT the Property is within a flood hazard area, and Buyer waives Buyer’s right to void this Agreement for

226such reason.

227

228(f)Qualifications of Inspectors

229 Where the term “qualified inspectors” is used in this Contract, it is intended to refer to persons who are licensed by the State of

230New Jersey for such purpose or who are regularly engaged in the business of inspecting residential properties for a fee and who

231generally maintain good reputations for skill and integrity in their area of expertise.

232

23321. NOTICES:

234All notices as required in this Contract must be in writing. All notices shall be by certified mail, by telegram, telefax or by

235delivering it personally. The telegram, certified letter or telefax will be effective upon sending. The personal delivery will be effective

236upon delivery to the other party. Notices to the Seller shall be addressed to the address that appears on line fifteen (15) of this

237Contract. Notice to the Buyer shall be addressed to the address that appears on line seven (7) of this Contract.

238

23922. MEGAN’S LAW STATEMENT

240UNDER NEW JERSEY LAW, THE COUNTY PROSECUTOR DETERMINES WHETHER AND HOW TO

241PROVIDE NOTICE OF THE PRESENCE OF CONVICTED SEX OFFENDERS IN AN AREA. IN THEIR

242PROFESSIONAL CAPACITY, REAL ESTATE LICENSEES ARE NOT ENTITLED TO NOTIFICATION BY THE

243COUNTY PROSECUTOR UNDER MEGAN’S LAW AND ARE UNABLE TO OBTAIN SUCH INFORMATION FOR

244YOU. UPON CLOSING, THE COUNTY PROSECUTOR MAY BE CONTACTED FOR SUCH FURTHER

245INFORMATION AS MAY BE DISCLOSABLE TO YOU.

246

24723. NOTICE ON OFF-SITE CONDITIONS: (Applicable to all resale transactions)

248PURSUANT TO THE NEW RESIDENTIAL CONSTRUCTION OFF-SITE CONDITIONS DISCLOSURE ACT,

249P.L. 1995, C. 253, THE CLERKS OF MUNICIPALITIES IN NEW JERSEY MAINTAIN LISTS OF OFF-SITE

250CONDITIONS WHICH MAY AFFECT THE VALUE OF RESIDENTIAL PROPERTIES IN THE VICINITY OF THE

251OFF-SITE CONDITION. PURCHASERS MAY EXAMINE THE LISTS AND ARE ENCOURAGED TO

252INDEPENDENTLY INVESTIGATE THE AREA SURROUNDING THIS PROPERTY IN ORDER TO BECOME

253FAMILIAR WITH ANY OFF-SITE CONDITIONS WHICH MAY AFFECT THE VALUE OF THE PROPERTY. IN

254CASES WHERE A PROPERTY IS LOCATED NEAR THE BORDER OF A MUNICIPALITY, PURCHASERS MAY

255WISH TO ALSO EXAMINE THE LIST MAINTAINED BY THE NEIGHBORING MUNICIPALITY.

256

25724. ATTORNEY REVIEW CLAUSE:

258(1) Study by Attorney

259The Buyer or the Seller may choose to have an attorney study this Contract. If an attorney is consulted, the attorney must

260complete his or her review of the Contract within a three-day period. This Contract will be legally binding at the end of this three-

261day period unless an attorney for the Buyer or the Seller reviews and disapproves of the Contract.

262

 

263

(2) Counting the Time

264

You count the three days from the date of delivery of the signed Contract to the Buyer and Seller. You do not count Saturdays,

265Sundays or legal holidays. The Buyer and the Seller may agree in writing to extend the three-day period for attorney review.

267(3) Notice of Disapproval

268

If an attorney for the Buyer or the Seller reviews and disapproves of this Contract, the attorney must notify the REALTOR”(S)

269and the other party named in this Contract within the three-day period. Otherwise this Contract will be legally binding as written.

270The attorney must send the notice of disapproval to the REALTOR@(S)by certified mail, by telegram, or by delivering it personally.

271The telegram or certified letter will be effective upon sending. The personal delivery will be effective upon delivery to the

272REALTOR@(S)office. The attorney may also, but need not, inform the REALTOR@(S)of any suggested revision(s) in the Contract

273that would make it satisfactory.

274

27525. ENTIRE AGREEMENT; PARTIES LIABLE:

276This Agreement contains the entire agreement of the parties. No representations have been made by any of the parties, the

277Broker(s) or hishedtheir agents except as set forth in this Agreement. This Agreement is binding upon all parties who sign it and all

278who succeed to their rights and responsibilities.

279

28026. BROKER’S COMMISSION:

281The commission, in accord with the previously executed listing agreement, shall be due and payable at the time of actual closing

282of title and payment by Buyer of the purchase consideration for the Property. The Seller hereby authorizes and instructs the Buyer’s

283attomey, or the Buyer’s title insurance company or whomever is the disbursing agent to pay the full commission as set forth below to

284the below mentioned BrokeR/Brokers out of the proceeds of sale prior to the payment of any such funds to the Seller. Buyer consents

285to the disbursing agent making the said disbursements.

286

COMMISSION IN ACCORD WITH PREVIOUSLY EXECUTED LISTING

287

AGREEMENT, LESS PARTICIPATING BROKER’S COMMISSION (IFANY)

 

 

288Listing Broker

290Address and Telephone #

292

Participating Broker

Commission

293

 

 

294Address and Telephone #

29627. FAILURE OF BUYER OR SELLER TO SETTLE:

297In the event the Seller willfully fails to close title to the Property in accordance with this Contract, the Buyer may commence any

298legal or equitable action to which the Buyer may be entitled. In the event the Buyer fails to close title in accordance with this Contract,

299the deposit monies paid on account, at the Seller’s option, shall be paid over to the Seller as liquidated damages. In the alternative,

300the Seller may commence an action for damages it has suffered, and, in such case, the deposit monies paid on account of the purchase

Buyer’sSeller’s

NJAR Form-l1&2K)2

Page 5 of 6

Initials:

 

Initials:

 

 

 

301price shall be applied against such damages. Liquidated damages means the Seller will keep the money paid on account and not

302commence any legal action for the Buyer’s failure to close title. In the event the Seller breaches this Contract, Seller will, nevertheless,

303be liable to the Broker for commissions as otherwise set forth in this Contract.

304

30528. CONSUMER INFORMATION STATEMENTACKNOWLEDGMENT

306By signing below the sellers and purchasers acknowledge they received the Consumer Information Statement on New Jersey Real

307Estate Relationships from the brokerage firms involved in this transaction prior to the first showing of the property.

308

 

 

 

 

309

29. DECLARATION OF LICENSEE BUSINESS RELATIONSHIP(S):

310

(a)

 

 

,(name of firm)AND

 

 

311

 

 

 

 

312

 

 

(name(s) of licensee(s)), AS ITS AUTHORIZED

313REPRESENTATIVE(S),ARE WORKING IN THIS TRANSACTION AS (choose one) 0 SELLER’S AGENTS

3140 BUYER’S AGENTS a DISCLOSED DUAL AGENTS 0 TRANSACTION BROKERS.

315

 

 

 

 

 

316

(b) INFORMATION SUPPLIED BY

 

 

(name of other firm)

317

HAS INDICATED THAT IT IS OPERATING IN THIS TRANSACTION AS A (choose one) 0 SELLER’S AGENT

318

0 BUYER’S AGENT

0 DISCLOSED DUAL AGENT

0 TRANSACTION BROKER.

319

 

 

 

 

 

32030. NEW CONSTRUCTION RIDER:

321If the property being sold consists of a lot and a detached single family home (the “House”) to be constructed upon the lot by

322the Seller, the “Rider To Contract of Sale of Real Estate - New Construction” has been signed by Buyer and Seller and is appended

323to and made a part of this Agreement.

324

32531. ADDITIONAL CONTRACTUAL PROVISIONS (if any):

343

344

345

348

349

350

35832. INDEX:

359

I . PURCHASE AGREEMENT &

13. NI HOTELAND MULTIPLEDWELLING IHEALTH &

23. OFF-SITE CONDITIONS

360

PROPERTY DESCRIPTION

SAFETY ACT

24. AlTORNEY REVIEW CLAUSE

2. PURCHASE PRICE

14. NO ASSIGNMENT

25. ENTIRE AGREEMENT:

361

3. MANNER OF PAYMENT

IS.RISK OF LOSS

PARTIES LIABLE

4. BUYER FINANCIALLY ABLE

16.ADJUSTMENTS AT CLOSING:

26. BROKER’S COMMISSION

 

362

TO CLOSE

RIGHTS TO POSSESSION

27. FAILURE OF BUYER OR SELLER

363

S. ACCURATE DISCLOSURE OF

17. MAINTENANCE & CONDITION

TO SETTLE

SELLING PRICE

OF PROPERTY

28. CONSUMER INFORMATION

364

6 TENANTS, IF ANY

I R . LEAD-BASED PAINT

STATEMENTACKNOWLEDGMENT

7. QUALITY OF TITLE

DOCUMENT ACKNOWLEDGMENT

29. DECLARATION OF LICENSEE BUSINESS

 

365

8. BUILDING & ZONING LAWS

19. LEAD-BASED PAINT

RELATIONSHIP

366

9. ITEMS INCLUDED IN SALE

CONTINGENCY CLAUSE

30. NEW CONSTRUCTION RIDER

IO.ITEMS EXCLUDED FROM SALE

20. INSPECTION CONTINGENCY CLAUSE

31. ADDITIONAL CONTRACTUAL PROVISIONS (IF ANY)

367

1 I.ASSESSMENTS

2 I . NOTICES

32. INDEX

12. FINAL INSPECTION

22. MEGAN’S LAW STATEMENT

 

 

 

368

 

 

 

369IN THE PRESENCE OF:

371

 

 

 

 

 

(L.S.)

372

 

 

Date

BUYER

373

 

 

 

 

 

(L.S.)

374

 

 

Date

BUYER

375

 

 

 

 

 

(L.S.)

376

 

 

Date

SELLER

377

 

 

 

 

 

(L.S.)

378

 

 

Date

SELLER

379

 

 

 

 

 

 

NJAR Form-118-2/02 Page 6 of 6

Buyer’sSeller’s

Initials:Initials:

Get PDF Form

Document Attributes

Fact Name Description
Usage Limitation This form is only for the sale of one to four family residential properties or vacant one-family lots.
Legally Binding Period The contract becomes final within three business days, offering a period for attorney review.
Deposit Handling Deposit money is held in a non-interest-bearing trust account until closing, with strict rules for disbursement.
Mortgage Contingency Buyer's performance is contingent upon obtaining a mortgage, with specific deadlines for securing a loan commitment.

How to Fill Out Njar Real Estate Contract

Filling out the New Jersey Association of Realtors (NJAR) Real Estate Contract requires careful attention to detail to ensure all parts of the agreement are fully understood and accurately recorded. This form is an essential document for the sale of one to four-family residential properties or vacant one-family lots in New Jersey. Prior to completing this form, both buyers and sellers are advised to carefully read through each section, ensuring that all information is correct and that they understand their rights and responsibilities under the contract. The following steps are designed to guide you through the process of completing the NJAR Real Estate Contract form.

  1. Start by entering the date of the agreement at the top of the form where indicated.
  2. Under "PURCHASE AGREEMENT AND PROPERTY DESCRIPTION," input the full names and social security numbers of the buyer(s) and seller(s), followed by their respective addresses.
  3. Detail the brokerage information, including the listing and participating broker, if applicable.
  4. In the section provided, write in the property's address and the municipal tax map reference including county, lot, and block numbers, along with the approximate size of the lot.
  5. Specify the total purchase price under "PURCHASE PRICE."
  6. Under "MANNER OF PAYMENT," indicate the amount of the deposit already paid or to be paid by the buyer, including the method of payment (cash or check) and note any additional deposit details.
  7. Fill out the mortgage contingency section if the buyer's performance is contingent on obtaining a mortgage, including the loan amount, type, interest rate, and points information.
  8. For the "BALANCE OF PURCHASE PRICE," describe how the balance will be paid at closing, including the type of deed and any conditions regarding title to the property.
  9. Confirm the "TOTAL PURCHASE PRICE" by writing the amount agreed upon by both parties.
  10. Under "BUYER FINANCIALLY ABLE TO CLOSE," have the buyer acknowledge their financial ability to complete the purchase.
  11. Both buyer and seller should initial at the bottom of each page to verify the accuracy of the information on that page.
  12. Proceed to include any details of existing tenancies, quality of title, building and zoning laws compliance, items included or excluded from the sale, assessments, and any final inspection agreements.
  13. Complete sections regarding New Jersey Hotel and Multiple Dwelling Health and Safety Act compliance, assignment restrictions, risk of loss, adjustments at closing, property maintenance and condition, and any lead-based paint acknowledgment required for properties built before 1978.
  14. Review and fill out all contingency clauses and notices sections, including any pertaining to environmental conditions or other inspections.
  15. At the end of the document, provide the names and signatures of all buyers and sellers, ensuring all parties have read and agreed to the terms of the contract. This should also include the date of signing.
  16. Ensure all necessary addenda, such as disclosures or additional contractual provisions, are attached and referenced within the main contract document.

Upon completing the NJAR Real Estate Contract form, the document should be reviewed by legal counsel within the three-day attorney review period to verify that all terms are understood and acceptable. Following this, the contract becomes legally binding unless an attorney disapproves of the contract within this window. This step is crucial in protecting the rights and interests of both the buyer and the seller.

More About Njar Real Estate Contract

  1. What is the purpose of the New Jersey Association of Realtors Standard Form of Real Estate Contract?

    This contract is designed specifically for transactions involving the sale of one to four-family residential properties or vacant one-family lots in New Jersey. It ensures that all parties involved in the transaction are clear about the terms of the sale, from the purchase price to the responsibilities of both buyers and sellers. This form is only suitable for use when the seller has signed a written listing agreement beforehand.

  2. Can this contract become legally binding without an attorney's review?

    Yes, the contract has a provision that allows it to become final after three business days, during which the parties can consult with an attorney. If either the buyer or seller chooses to have an attorney review the contract and the attorney disapproves of it within the three-day period, the contract will not become legally binding. Otherwise, it will be considered as final.

  3. What happens if the buyer and seller cannot agree on the disbursement of escrow monies?

    If there is a disagreement on the distribution of the escrow funds, the designated escrow agent has the authority to deposit the funds into court. The court will then resolve the dispute. This ensures that the funds are handled fairly and in accordance with the law.

  4. Is it required that the buyer obtains a mortgage to purchase the property?

    If the performance by the buyer is contingent upon obtaining a mortgage and they fail to secure one by the specified date, either the buyer or the seller may void the agreement. However, the buyer is expected to apply for a mortgage immediately and in good faith, following the terms outlined in the contract.

  5. What responsibilities does the seller have regarding the property's title?

    The seller must ensure that the property title is good, marketable, and insurable. Should there be any exceptions other than what's described in the contract, the seller has 30 days to remove those exceptions or the buyer has the option to void the contract. This provision protects the buyer from unforeseen title issues that could affect ownership.

  6. What are the inspection rights of the buyer?

    The buyer has the right to conduct various inspections at their own expense to check for physical defects or environmental conditions. These inspections must be completed within a certain timeframe after the attorney review period. If significant issues are found, the buyer may negotiate repairs or void the contract.

  7. What does the inspection contingency clause entail?

    This clause allows the buyer to have the property inspected for physical defects and environmental conditions. Should there be issues identified that the seller refuses or is unable to correct, the buyer may opt to void the contract. This clause offers protection to the buyer to ensure they are purchasing a property that meets their expectations and is safe.

  8. What happens if the property is found to have lead-based paint?

    If the dwelling was built before 1978, it's subject to inspection for lead-based paint. If lead-based paint or hazards are found, the buyer can request the seller to remediate. Failure to reach an agreement on remediation allows the buyer to void the contract, ensuring the buyer's safety and well-being.

  9. What are the responsibilities of the seller regarding the maintenance and condition of the property?

    The seller is obligated to maintain the property in good condition, subject to ordinary wear and tear, up until closing. This includes ensuring that all included appliances are in working order at the time of closing. However, the seller does not guarantee the condition of these appliances or the property after the deed has been transferred.

Common mistakes

Filling out the New Jersey Association of REALTORS® Standard Form of Real Estate Contract requires careful attention to detail. Often, individuals make critical errors that can impact the transaction. Understanding these common mistakes can help ensure a smoother process.

  1. Not consulting an attorney within the three-day review period can result in missing the opportunity for legal scrutiny of the contract, potentially overlooking unfavorable terms.

  2. Failing to accurately complete the purchase agreement and property description sections may lead to disputes over what was agreed upon, including lot size and property boundaries.

  3. Incorrectly stating the purchase price or misunderstanding the manner of payment arrangements can cause financial discrepancies, affecting loan approvals and closing procedures.

  4. Omitting details about the earnest money deposit, such as the amount and who holds it, can result in confusion and disputes if the sale doesn't proceed as planned.

  5. Assuming mortgage contingency terms without fully understanding or accurately documenting them can risk the contract's validity if financing falls through.

  6. Not specifying which, if any, items are excluded from the sale can create confusion and conflict over personal property versus fixtures.

  7. Overlooking the requirement for a home inspection contingency, leading to unwelcome surprises about the property's condition after purchase.

  8. Neglecting to address lead-based paint disclosures for homes built before 1978 puts buyers at risk and sellers at liability for non-disclosure.

  9. Ignoring the need for a final walkthrough or inspection just before closing can lead to disputes if the property's condition has changed.

  10. Forgetting to verify and comply with local laws and requirements, such as the Certificate of Occupancy or smoke detector compliance, can delay or derail closing.

These mistakes highlight the importance of diligence and precision when completing real estate contracts. Parties are encouraged to thoroughly review and accurately complete every relevant section of the NJAR Real Estate Contract to avoid potential legal and financial implications.

Documents used along the form

Engaging in a real estate transaction involves more than just signing a contract. In New Jersey, the New Jersey Association of REALTORS® Standard Form of Real Estate Contract is a key document when it comes to buying or selling properties. However, to navigate the complexities of real estate transactions effectively, several other forms and documents are often utilized in conjunction with this contract. Understanding these documents is crucial for both buyers and sellers to ensure a smooth and compliant transaction.

  • Lead-Based Paint Disclosure: For properties built before 1978, this document is crucial. It discloses the presence of lead-based paint and potential hazards. Sellers must disclose known information on lead-based paint and lead-based paint hazards before selling a house.
  • Home Inspection Contingency Addendum: This addendum allows the buyer to negotiate or withdraw based on a professional home inspection report. It specifies the terms under which the buyer can cancel the contract if significant defects are discovered during the inspection.
  • Property Disclosure Statement: Sellers provide this form to disclose the condition of the property and any known defects. This document is essential for transparency and can help protect the seller from future legal issues related to undisclosed defects.
  • Mortgage Pre-Approval Letter: While not always attached to the contract, a mortgage pre-approval letter is often submitted with the offer to purchase. This letter from a lender indicates that the buyer has been preliminarily approved for a loan up to a certain amount, thus confirming their financial ability to close the deal.
  • Title Insurance Commitment: This document outlines the terms under which a title insurance company will issue a policy. It provides detailed information on the property’s title, listing any defects, liens, or encumbrances discovered through a title search. It assures the buyer of a clear title transfer and protection against future claims.

To successfully navigate the complexities of real estate transactions, understanding and adequately preparing these documents is essential. Each serves a specific purpose, ensuring clarity, compliance, and protection for all parties involved throughout the process. From disclosing the property’s condition to securing financing and ensuring a clear title, these documents play critical roles in a successful real estate transaction.

Similar forms

  • The Residential Lease Agreement is similar because it also includes identification of the parties, property description, and terms and conditions specific to residential use. Like the NJAR Real Estate Contract form, a Residential Lease Agreement pertains to residential real estate transactions, involves the agreement between a landlord (similar to a seller) and a tenant (similar to a buyer), and includes terms about the property's use, payments, and maintenance responsibilities.

  • The Bill of Sale document has similarities in its function of transferring ownership rights from one party to another. Both documents outline the terms of the sale, including the price and payment methods. While a Bill of Sale is often used for personal property like vehicles, the NJAR Real Estate Contract form specifically pertains to real estate transactions, transferring ownership of property.

  • The Title Insurance Commitment shares a connection in its involvement in real estate transactions, detailing the terms under which a title insurance company will insure the title to the property. Similar to the real estate contract, it addresses issues related to the property’s title and aims to protect the buyer from potential problems not discovered during the initial title search.

  • Home Inspection Report documents are similar in the context of purchasing real estate, providing an in-depth look at the property's current condition. These reports influence the final agreement between buyer and seller in the NJAR Real Estate Contract by identifying any issues that may require negotiation or repair before finalizing the sale.

  • The Mortgage Pre-approval Letter is another document closely related to the NJAR Real Estate Contract, especially in transactions dependent on the buyer obtaining a mortgage. It demonstrates the buyer’s financial ability to close on the real estate purchase, akin to the financial disclosures and contingencies outlined in the NJAR contract.

  • Closing Disclosure is a document used in real estate transactions to detail the final financial terms and expenses. It is similar because it finalizes the terms initially agreed upon in real estate contracts like the NJAR form, providing clear, detailed financial responsibilities of the buyer and seller at the close of the transaction.

  • The Property Deed is a legal document transferring property ownership, which directly relates to the agreement made in the NJAR Real Estate Contract form. After closing, the deed is the document that executes and confirms the transfer described in the real estate contract, making it an essential subsequent document in the process.

  • Lead-Based Paint Disclosure is a document required in the sale of certain residential properties, similar to the NJAR Real Estate Contract’s requirement for disclosure of lead-based paint if the property was built before 1978. This emphasizes the importance of disclosures and legal compliance in real estate transactions, focusing on health and safety even after the contract is signed.

Dos and Don'ts

When filling out the NJAR Real Estate Contract form, it is essential to navigate the process carefully to ensure that the agreement accurately reflects the terms of your real estate transaction. Below are essential dos and don'ts to consider:

  • Do thoroughly review each section of the contract to understand all the terms and conditions. It's crucial that you know what you're agreeing to.
  • Do not skip the attorney review clause. This period allows you to consult with a legal professional who can provide vital insights and potentially identify any terms that may not be in your best interest.
  • Do confirm the accuracy of all personal information, including social security numbers and addresses. Mistakes here can cause significant issues down the line.
  • Do not leave sections incomplete. If a section is not applicable, mark it as N/A rather than leaving it blank to avoid any confusion.
  • Do clarify the roles and commission details of any brokers involved in the transaction to prevent misunderstandings regarding their compensation.
  • Do not forget to include and agree upon any items included or excluded from the sale. This helps prevent disputes over personal property.
  • Do pay close attention to deadlines, such as those for obtaining mortgage commitments and completing inspections. Missing these can have contractual ramifications.
  • Do not overlook the importance of contingencies, like those for financing or the sale of another property. These clauses can offer crucial protection if the deal doesn't proceed as planned.
  • Do ensure that both buyers and sellers sign and initial all required pages and amendments. This formalizes the agreement and its conditions.

Adhering to these guidelines can greatly enhance the process's clarity and legality, ensuring both parties are well-protected throughout the transaction.

Misconceptions

When reviewing the New Jersey Association of Realtors (NJAR) Standard Form of Real Estate Contract, several misconceptions commonly arise. Due to the legal nature of this document, it's important to clarify these misunderstandings to ensure both buyers and sellers are fully informed.

  • One common misconception is that the NJAR Real Estate Contract is too rigid and doesn't allow for negotiation between the buyer and seller. In reality, this form is designed as a baseline from which adjustments and negotiations can be made to suit the specific needs of both parties involved in the transaction.

  • Another misunderstanding is that once the contract is signed, there is no opportunity for either party to back out or make changes. However, the contract includes an attorney review clause that allows both the buyer's and the seller's attorneys to review and propose changes to the contract within three business days after it has been signed.

  • Many people believe that the use of the NJAR contract is mandatory for all real estate transactions in New Jersey. This is not the case; while it is a widely accepted and standard document, parties are free to use other forms of contracts if they so choose, provided those contracts comply with New Jersey law.

  • There's also a misconception that the NJAR contract favors the seller. This is not accurate, as the form is intended to be neutral, providing a fair framework that protects the interests of both buyers and sellers.

  • Some think that the NJAR Real Estate Contract covers every possible scenario that could arise in a real estate transaction. While the contract is comprehensive, it cannot possibly account for every unique situation. It often needs to be supplemented with additional agreements or clauses to address specific concerns.

  • Lastly, a common misconception is that once the NJAR contract has been signed, the buyer automatically forfeits their deposit if they decide not to proceed with the purchase. The contract does include provisions related to the deposit, but there are conditions under which a buyer might rightfully reclaim their deposit, such as the seller's failure to meet certain contract conditions or during the attorney review period.

Understanding these key aspects of the NJAR Real Estate Contract can help buyers and sellers navigate their real estate transactions more effectively, making the process smoother and less intimidating for all parties involved.

Key takeaways

Understanding the New Jersey Association of Realtors® Standard Form of Real Estate Contract involves recognizing its design for specific property sales and acknowledging the protective clauses it includes for both parties. This contract is meticulously structured, emphasizing its applicability to transactions involving one to four-family residential properties or vacant single-family lots. Notably, this underscores its limitation and the necessity for sellers to have previously engaged in a written listing agreement.

One critical aspect of this contract is the attorney review clause, granting both buyers and sellers a three-day period to seek legal advice regarding the contract. This provision not only safeguards the interests of all parties but also indicates the contract’s flexibility within the initial period following its execution. It impels participants to act swiftly in either endorsing the contract’s terms or seeking amendments, thereby underscoring the importance of legal counsel in real estate transactions.

The document further details the handling of the purchase price, including the initial deposit and additional payments, all of which are to be held in escrow until the closing of the title. This protective measure ensures that funds are appropriately secured, providing both parties with a level of financial security. The delineation of the manner of payment also specifies scenarios of mortgage contingency, where the buyer's performance is contingent upon securing a mortgage, highlighting the contract’s consideration for the buyer's financing conditions.

An integral component of the contract is the section on property condition and included items, addressing the maintenance responsibilities of the seller and the operational status of included appliances and systems until the closing. It explicitly states that these terms will not survive the closing, meaning the seller’s warranty does not extend beyond this point. This clause is paramount in setting realistic expectations regarding the property’s condition at the transaction's conclusion.

Moreover, the contract addresses compliance with environmental and safety laws, particularly regarding lead-based paint, which is a significant concern in older homes. The inclusion of a contingency clause for lead-based paint inspection ensures that the property meets specific safety standards, reflecting the contract's attentiveness to health and environmental considerations. This provision not only underscores the potential risks associated with older properties but also delineates steps for assessment and remediation, offering a mechanism for buyer protection.

  • It's tailored for specific types of residential property sales, necessitating a written listing agreement.
  • Features an attorney review clause, emphasizing the role of legal counsel in real estate transactions.
  • Details the escrow handling of purchase payments, enhancing financial security for both parties.
  • Specifies the condition of the property and inclusion of appliances until closing, setting clear expectations.
  • Incorporates environmental and safety compliance, particularly for lead-based paint, ensuring property safety.
Please rate Free Njar Real Estate Contract PDF Template Form
4.5
Excellent
2 Votes

Other PDF Templates

Car Service Checklist Template - Delves into the vehicle's battery health and the connection status of battery cables, essential for reliable vehicle start-up and electrical system functionality.

W-9 Form Filled Out Example - Key in helping entities gather accurate information to issue year-end tax documents, like the 1099-NEC, reflecting services paid.