New Jersey 118 Form

New Jersey 118 Form

The New Jersey 118 form serves as a critical document in real estate transactions, outlining the rights and responsibilities of both buyers and sellers. This form is designed to ensure that all parties involved are informed about important aspects of the contract before signing. Understanding the implications of this form can help facilitate a smoother transaction and protect your interests.

Access New Jersey 118 Here

In the realm of real estate transactions in New Jersey, the New Jersey 118 form plays a pivotal role in guiding both buyers and sellers through the complexities of property sales. This form serves as a notice to both parties, emphasizing the importance of understanding the legal implications before signing a contract. It outlines the roles of real estate brokers, clarifying whether they represent the buyer, the seller, both, or neither. One critical aspect highlighted in the form is that neither the broker nor the title company can provide legal advice, underscoring the necessity for individuals to seek their own legal counsel. The contract itself is described as the cornerstone of the transaction, detailing rights, risks, and obligations that come into play once it is signed. Buyers are cautioned that the contract becomes final and binding unless canceled by an attorney within three business days, a timeframe that underscores the urgency of legal review. The form also addresses the importance of various reports and surveys that can significantly impact the transaction, emphasizing that buyers without legal representation face heightened risks. Ultimately, the New Jersey 118 form aims to empower individuals with the knowledge necessary to make informed decisions in their real estate dealings, ensuring that they understand the stakes involved in what is often one of the most significant transactions of their lives.

Common Questions

What is the New Jersey 118 form?

The New Jersey 118 form is a standardized real estate sales contract used for the purchase or sale of one to four-family residential properties or vacant one-family lots. This document outlines the terms and conditions of the transaction, including the rights, obligations, and risks for both the buyer and seller. It is essential for parties involved in a real estate transaction in New Jersey to understand this form, as it is legally binding once signed.

Why is it important to have a lawyer when signing the New Jersey 118 form?

Having a lawyer is crucial when dealing with the New Jersey 118 form because it ensures that your interests are protected. A lawyer can provide legal advice, review the contract, and help you understand its terms. They can also negotiate conditions on your behalf and assist with any legal issues that arise during the transaction. Without legal representation, you may face risks that could have been mitigated or avoided altogether.

What happens if I do not have a lawyer when signing this contract?

If you choose not to hire a lawyer, you may face significant risks. The contract becomes final and binding unless canceled within three business days by a lawyer. Without legal representation, you cannot change or cancel the contract unless both parties agree. Additionally, you will not receive any legal advice or support regarding potential issues, such as title problems or property condition concerns, which could affect your investment.

What is the attorney review period mentioned in the New Jersey 118 form?

The attorney review period is a three-business-day timeframe during which the buyer's or seller's attorney can review the contract and suggest changes or cancellations. If the attorney disapproves of the contract within this period, it can be canceled without penalty. This period is essential for ensuring that both parties have the opportunity to seek legal counsel and understand their rights and obligations before the contract becomes binding.

What are the risks of not understanding the New Jersey 118 form?

Not fully understanding the New Jersey 118 form can lead to various risks. You may unknowingly agree to unfavorable terms, miss critical deadlines, or overlook important contingencies that could affect your purchase. Issues such as title defects, zoning compliance, or property condition can arise, and without proper guidance, you might find yourself in a difficult situation. A lawyer can help clarify these aspects and ensure that you are making informed decisions throughout the process.

Key takeaways

  • Understand Representation: The form clarifies whether the broker represents the buyer, seller, both, or neither. Knowing this helps you understand who is advocating for your interests.

  • Legal Advice: You will not receive legal advice from the broker or title company. It is crucial to hire your own lawyer to ensure your legal rights are protected.

  • Contract Importance: The contract is the central document of the transaction. It outlines your rights and obligations, so review it carefully, preferably with a lawyer.

  • Binding Nature: The contract becomes binding unless canceled by a lawyer within three business days. Without a lawyer, you cannot change or cancel the contract without the other party's consent.

  • Lawyer's Role: A lawyer can order essential reports like surveys and title reports. They can also help resolve issues regarding property ownership and prepare necessary closing documents.

  • Risks Without Legal Counsel: Buyers without a lawyer face risks, such as issues with the seller's title or property condition. Brokers and title companies may not identify all potential problems.

Form Properties

Fact Name Description
Form Purpose The New Jersey 118 form serves as a notice to buyers and sellers in real estate transactions, ensuring they understand their rights and responsibilities before signing a contract.
Legal Requirement New Jersey law mandates that real estate brokers provide this notice to both parties prior to signing any sales contract.
Broker Representation The form clarifies the broker's role, indicating whether they represent the seller, the buyer, both, or neither.
Legal Advice Buyers and sellers are informed that they will not receive legal advice from the broker or title company unless they hire their own attorney.
Binding Contract The contract becomes binding unless canceled by a lawyer within three business days, highlighting the importance of legal consultation.
Lawyer's Role A lawyer can order surveys and title reports, helping to address any ownership or condition issues regarding the property.
Buyer Risks Buyers without legal representation face risks related to title issues and property conditions, which may not be recognized by brokers or title companies.
Decision to Retain Counsel Ultimately, the decision to hire a lawyer is up to the buyer or seller, and the form aims to provide necessary information for that decision.
Applicable Properties This form is specifically designed for the sale of one to four-family residential properties or vacant one-family lots in New Jersey.
Document Prepared By The form must be prepared by a licensed real estate professional, ensuring compliance with New Jersey real estate laws.

Misconceptions

Understanding the New Jersey 118 form is crucial for both buyers and sellers in a real estate transaction. However, several misconceptions often arise regarding this form. Here are six common misconceptions and clarifications to help you navigate the process more effectively:

  • Misconception 1: The broker represents both parties equally.

    • This is not true. The broker may represent either the seller or the buyer, or even both, but they do not represent both parties equally. It is essential to clarify who the broker represents before signing any contracts.

  • Misconception 2: The title company provides legal advice.

    • Title companies do not offer legal advice. Buyers and sellers must seek their own legal counsel for guidance on any legal matters related to the transaction. Without a lawyer, you may not have adequate representation.

  • Misconception 3: The contract is flexible and can be easily changed after signing.

    • Once the contract is signed, it becomes final and binding unless canceled by a lawyer within three business days. Without legal representation, changes to the contract require mutual agreement from both parties.

  • Misconception 4: You can rely solely on the broker for important reports.

    • While brokers can provide valuable information, they are not responsible for ordering surveys or title reports. It is the lawyer's role to ensure these documents are reviewed and any issues are addressed.

  • Misconception 5: A buyer can safely proceed without a lawyer.

    • This is a risky choice. Without a lawyer, buyers may encounter unforeseen problems regarding the property, such as title issues or zoning restrictions. A lawyer can help navigate these complexities and protect your interests.

  • Misconception 6: The decision to hire a lawyer is not important.

    • On the contrary, hiring a lawyer is a significant decision that can impact the entire transaction. The notice serves to inform you of the importance of legal representation in real estate transactions, ensuring you are fully informed before making your choice.

New Jersey 118 Preview

NOTICE
TO BUYER AND SELLER
READ THIS NOTICE BEFORE SIGNING THE CONTRACT
The Law requires real estate brokers to give you the following information before you sign this contract. It
requires us to tell you that you must read all of it before you sign. The purpose is to help you in this purchase or
sale.
1) As a real estate broker, I represent: the seller, not the buyer; the buyer, not the seller;
both the seller and the buyer; neither the seller nor the buyer.
The title company does not represent either the seller or the buyer.
2) You will not get any legal advice unless you have your own lawyer. Neither I nor anyone from the title com
pany can give legal advice to either the buyer or the seller. If you do not hire a lawyer, no one will represent you
in legal matters now or at the closing. Neither I nor the title company will represent you in those matters.
3) The contract is the most important part of the transaction. It determines your rights, risks, and obligations.
Signing the contract is a big step. A lawyer would review the contract, help you to understand it, and to negoti
ate its terms.
4) The contract becomes final and binding unless your lawyer cancels it within the following three business
days. If you do not have a lawyer, you cannot change or cancel the contract unless the other party agrees. Nei
ther can the real estate broker nor the title insurance company change the contract.
5) Another important service of a lawyer is to order a survey, title report, or other important reports. The
lawyer will review them and help to resolve any questions that may arise about the ownership and condition of
the property. These reports and survey can cost you a lot of money. A lawyer will also prepare the documents
needed to close title and represent you at the closing.
6) A buyer without a lawyer runs special risks. Only a lawyer can advise a buyer about what to do if problems
arise concerning the purchase of this property. The problems may be about the seller's title, the size and shape
of the property, or other matters that may affect the value of the property. If either the broker or the title com
pany knows about the problems, they should tell you. But they may not recognize the problem, see it from your
point of view, or know what to do. Ordinarily, the broker and the title company have an interest in seeing that
the sale is completed, because only then do they usually receive their commissions. So, their interests may differ
from yours.
7) Whether you retain a lawyer is up to you. It is your decision. The purpose of this notice is to make sure that
you have the information needed to make your decision.
SELLER DATE BUYER DATE
SELLER DATE BUYER DATE
SELLER DATE BUYER DATE
SELLER DATE BUYER DATE
Listing Broker Selling Broker
Prepared by:
Name of Real Estate Licensee
New Jersey Realtors® Form 118Statewide 4/17 Page 1 of 13
STATEWIDE NEW JERSEY REALTORS® STANDARD FORM
OF REAL ESTATE SALES CONTRACT
©2016 New Jersey REALTORS®, Inc.
THIS FORM MAY BE USED ONLY IN THE SALE OF A ONE TO FOUR-FAMILY RESIDENTIAL PROPERTY
OR VACANT ONE-FAMILY LOTS. THIS FORM IS SUITABLE FOR USE ONLY WHERE THE SELLER HAS
PREVIOUSLY EXECUTED A WRITTEN LISTING AGREEMENT.
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 CANCEL THE
CONTRACT. SEE SECTION ON ATTORNEY REVIEW FOR DETAILS.
TABLE OF CONTENTS
1
1. PARTIES AND PROPERTY
DESCRIPTION
2
2. PURCHASE PRICE
3
3. MANNER OF PAYMENT
4. SUFFICIENT ASSETS
4
5. ACCURATE DISCLOSURE OF SELLING
PRICE
5
6. ITEMS INCLUDED IN SALE
6
7. ITEMS EXCLUDED FROM SALE
7
8. DATES AND TIMES FOR
PERFORMANCE
8
9.. CERTIFICATE OF OCCUPANCY AND
ZONING COMPLIANCE
9
10. MUNICIPAL ASSESSMENTS
10
11. QUALITY AND INSURABILITY OF
TITLE
11
12. POSSESSION, OCCUPANCY AND
TENANCIES
12
13. LEADBASED PAINT AND/OR LEAD
13
BASED PAINT HAZARD
14. POINT OF ENTRY TREATMENT SYSTEMS
15. CESSPOOL REQUIREMENTS
16. INSPECTION CONTINGENCY CLAUSE
17. MEGAN'S LAW STATEMENT
18. MEGAN'S LAW REGISTRY
19. NOTIFICATION REGARDING OFF
SITE CONDITIONS
20. AIR SAFETY AND ZONING
NOTICE
21. BULK SALES
22. NOTICE TO BUYER CONCERNING
INSURANCE
23. MAINTENANCE AND CONDITION OF
PROPERTY
24. RISK OF LOSS
25. INITIAL AND FINAL WALK
THROUGHS
26. ADJUSTMENTS AT CLOSING
27. FAILURE OF BUYER OR SELLER TO
CLOSE.
28. CONSUMER INFORMATION
STATEMENT ACKNOWLEDGEMENT
29. DECLARATION OF BROKER(S)
BUSINESS RELATIONSHIP(S)
30. BROKERS' INFORMATION AND
COMMISSION
31.. EQUITABLE LIEN
32. DISCLOSURE THAT BUYER OR
SELLER IS A REAL ESTATE LICENSEE
33. BROKERS TO RECEIVE CLOSING
DISCLOSURE AND OTHER DOCUMENTS
34. PROFESSIONAL REFERRALS
35. ATTORNEYREVIEW CLAUSE
36. NOTICES
37. NO ASSIGNMENT
38. ELECTRONIC SIGNATURES AND
DOCUMENTS
39. CORPORATE RESOLUTIONS
40. ENTIRE AGREEMENT; PARTIES LIABLE
41. APPLICABLE LAWS
42. ADDENDA
43 ADDITIONAL CONTRACTUAL
PROVISIONS
14
15
16
1. PARTIES AND PROPERTY DESCRIPTION:
17
18
(“Buyer”), , (“Buyer”),
19
20
(“Buyer”), , (“Buyer”),
21
22
whose address is/are
23
24
25
AGREES TO PURCHASE FROM
26
27
(“Seller”), , (“Seller”),
28
29
(“Seller”), , (“Seller”),
30
31
whose address is/are
32
33
34
THROUGH THE BROKER(S) NAMED IN THIS CONTRACT AT THE PRICE AND TERMS STATED BELOW, THE
35
FOLLOWING PROPERTY:
36
Property Address:
37
38
shown on the municipal tax map of County
39
40
as Block Lot
(the “Property”).
41
THE WORDS “BUYER” AND “SELLER” INCLUDE ALL BUYERS AND SELLERS LISTED ABOVE.
42
43
2. PURCHASE PRICE:
44
TOTAL PURCHASE PRICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
45
INITIAL DEPOSIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
46
ADDITIONAL DEPOSIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
47
MORTGAGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
48
BALANCE OF PURCHASE PRICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
49
50
New Jersey Realtors® Form 118Statewide 4/17 Page 2 of 13
Buyer's Seller's
Initials: Initials:
51
3. MANNER OF PAYMENT:
52
(A) INITIAL DEPOSIT to be paid by Buyer to
Listing Broker Participating Broker Buyer's Attorney Title Company
53
Other , on or before (date) (if left blank, then within five (5)
54
business days after the fully signed Contract has been delivered to both Buyer and the Seller).
55
56
(B) ADDITIONAL DEPOSIT to be paid by Buyer to the party who will be responsible for holding the escrow who is identified below
57
on or before (date) (if left blank, then within ten (10) calendar days after the fully signed Contract has been
58
delivered to both the Buyer and the Seller).
59
60
(C) ESCROW: All initial and additional deposit monies paid by Buyer shall be held in escrow in the NON-INTEREST
61
BEARING TRUST ACCOUNT of , (“Escrowee”), until the Closing, at which time all
62
monies shall be paid over to Seller. The deposit monies shall not be paid over to Seller prior to the Closing, unless otherwise agreed
63
in writing by both Buyer and Seller. If Buyer and Seller cannot agree on the disbursement of these escrow monies, the Escrowee may
64
place the deposit monies in Court requesting the Court to resolve the dispute.
65
66
(D) IF PERFORMANCE BY BUYER IS CONTINGENT UPON OBTAINING A MORTGAGE:
67
If payment of the purchase price requires a mortgage loan other than by Seller or other than assumption of Seller's mortgage,
68
Buyer shall apply for the loan through any lending institution of Buyer's choice in writing on lender's standard form within ten (10)
69
calendar days after the attorneyreview period is completed or, if this Contract is timely disapproved by an attorney as provided in the
70
AttorneyReview Clause Section of this Contract, then within ten (10) calendar days after the parties agree to the terms of this Contract,
71
and use best efforts to obtain it. Buyer shall supply all necessary information and fees required by the proposed lender and shall authorize
72
the lender to communicate with the real estate brokers(s) and involved attorney(s). Buyer shall obtain a written commitment from the
73
lending institution to make a loan on the property under the following terms:
74
75
Principal Amount $ Type of Mortgage: VA FHA Conventional Other
76
Term of Mortgage: years, with monthly payments based on a year payment schedule.
77
78
The written mortgage commitment must be delivered to Seller's agent, who is the Listing Broker identified in Section 30, and Seller's
79
attorney, if applicable, no later than (date)(if left blank, then within thirty (30) calendar days after
80
the attorneyreview period is completed, or if this Contract is timely disapproved by an attorney as provided in the AttorneyReview
81
Clause Section of this Contract, then within thirty (30) calendar days after the parties agree to the terms of this Contract). Thereafter,
82
if Buyer has not obtained the commitment, then either Buyer or Seller may void this Contract by written notice to the other party and
83
Broker(s) within ten (10) calendar days of the commitment date or any extension of the commitment date, whichever is later. If this
84
Contract is voided, the deposit monies paid by Buyer shall be returned to Buyer notwithstanding any other provision in this Contract,
85
provided, however, if Seller alleges in writing to Escrowee within said ten (10) calendar days of the commitment date or any extension of
86
the commitment date, whichever is later, that the failure to obtain the mortgage commitment is the result of Buyer's bad faith, negligence,
87
intentional conduct or failure to diligently pursue the mortgage application, then Escrowee shall not return the deposit monies to Buyer
88
without the written authorization of Seller.
89
90
(E) BALANCE OF PURCHASE PRICE: The balance of the purchase price shall be paid by Buyer in cash, or by certified, cashier's
91
check or trust account check.
92
93
Payment of the balance of the purchase price by Buyer shall be made at the closing, which will take place on
94
(date) at the office of Buyer's closing agent or such other place as Seller
95
and Buyer may agree (“the Closing”).
96
97
4. SUFFICIENT ASSETS:
98
Buyer represents that Buyer has or will have as of the Closing, all necessary cash assets, together with the mortgage loan proceeds, to
99
complete the Closing. Should Buyer not have sufficient cash assets at the Closing, Buyer will be in breach of this Contract and Seller shall
100
be entitled to any remedies as provided by law.
101
102
5. ACCURATE DISCLOSURE OF SELLING PRICE:
103
Buyer and Seller certify that this Contract accurately reflects the gross sale price as indicated in Section 2 of this Contract. Buyer and
104
Seller understand and agree that this information shall be disclosed to the Internal Revenue Service and other governmental agencies as
105
required by law.
106
107
6. ITEMS INCLUDED IN SALE:
108
The Property includes all fixtures permanently attached to the building(s), and all shrubbery, plantings and fencing, gas and electric
109
fixtures, cooking ranges and ovens, hot water heaters, flooring, screens, storm sashes, shades, blinds, awnings, radiator covers, heating
110
apparatus and sump pumps, if any, except where owned by tenants, are included in this sale. All of the appliances shall be in working
New Jersey Realtors® Form 118Statewide 4/17 Page 3 of 13
Buyer's Seller's
Initials: Initials:
111
order as of the Closing. Seller does not guarantee the condition of the appliances after the Deed and affidavit of title have been delivered
112
to Buyer at the Closing. The following items are also specifically included (If reference is made to the MLS Sheet and/or any other
113
document, then the document(s) referenced should be attached.):
114
115
116
117
118
7. ITEMS EXCLUDED FROM SALE: (If reference is made to the MLS Sheet and/or any other document, then the document(s)
119
referenced should be attached.):
120
121
122
123
124
8. DATES AND TIMES FOR PERFORMANCE:
125
Seller and Buyer agree that all dates and times included in this Contract are of the essence. This means that Seller and Buyer must satisfy
126
the terms of this Contract within the time limits that are set in this Contract or will be in default, except as otherwise provided in this
127
Contract or required by applicable law, including but not limited to if the Closing has to be delayed either because a lender does not timely
128
provide documents through no fault of Buyer or Seller or for three (3) business days because of the change of terms as required by the
129
Consumer Financial Protection Bureau.
130
131
(A) Additional documents from lenders or other property owners:
132
If a lender or other property owner requires that any addendum or other document be signed for a property it owns in connection with this
133
Contract, “final execution date,” “acknowledgement date,” or similar language that sets the time period for the completion of any conditions
134
or contingencies, including but not limited to inspections and financing, shall mean that the time will begin to run after the attorneyreview
135
period is completed or, if this Contract is timely disapproved by an attorney as provided in the AttorneyReview Clause Section of this
136
Contract, then from the date the parties agree to the terms of this Contract.
137
138
9. CERTIFICATE OF OCCUPANCY AND ZONING COMPLIANCE:
139
Seller makes no representations concerning existing zoning ordinances, except that Seller's use of the Property is not presently in violation
140
of any zoning ordinances.
141
142
Some municipalities may require a Certificate of Occupancy or Housing Code Letter to be issued. If any is required for this Property,
143
Seller shall obtain it at Seller's expense and provide to Buyer prior to Closing and shall be responsible to make and pay for any repairs
144
required in order to obtain the Certificate or Letter. However, if this expense exceeds $ (if left blank, then 1.5% of the
145
purchase price) to Seller, then Seller may terminate this Contract and refund to Buyer all deposit monies plus Buyer's reasonable expenses,
146
if any, in connection with this transaction unless Buyer elects to make repairs in excess of said amount at Buyer's expense, in which event
147
Seller shall not have the right to terminate this Contract. In addition, Seller shall comply with all New Jersey laws, and local ordinances,
148
including but not limited to smoke detectors, carbon monoxide detectors, fire extinguishers and indoor sprinklers, the cost of which shall
149
be paid by Seller and not be considered as a repair cost.
150
151
10. MUNICIPAL ASSESSMENTS: (Seller represents that Seller
has has not been notified of any such municipal assessments as
152
explained in this Section.)
153
154
Title shall be free and clear of all assessments for municipal improvements, including but not limited to municipal liens, as well as
155
assessments and liabilities for future assessments for improvements constructed and completed. All confirmed assessments and all
156
unconfirmed assessments that have been or may be imposed by the municipality for improvements that have been completed as of the
157
Closing are to be paid in full by Seller or credited to Buyer at the Closing. A confirmed assessment is a lien against the Property. An
158
unconfirmed assessment is a potential lien that, when approved by the appropriate governmental entity, will become a legal claim against
159
the Property.
160
161
11. QUALITY AND INSURABILITY OF TITLE:
162
At the Closing, Seller shall deliver a duly executed Bargain and Sale Deed with Covenant as to Grantor's Acts or other Deed satisfactory
163
to Buyer. Title to the Property will be free from all claims or rights of others, except as described in this Section and Section 12, of this
164
Contract. The Deed shall contain the full legal description of the Property.
165
166
This sale will be subject to utility and other easements and restrictions of record, if any, and such state of facts as an accurate survey
167
might disclose, provided such easement or restriction does not unreasonably limit the use of the Property. Generally, an easement is a
168
right of a person other than the owner of property to use a portion of the property for a special purpose. A restriction is a recorded
169
limitation on the manner in which a property owner may use the property. Buyer does not have to complete the purchase, however,
170
if any easement, restriction or facts disclosed by an accurate survey would substantially interfere with the use of the Property for
171
residential purposes. A violation of any restriction shall not be a reason for Buyer refusing to complete the Closing as long as the title
172
company insures Buyer against loss at regular rates. The sale also will be made subject to applicable zoning ordinances, provided that
173
the ordinances do not render title unmarketable.
174
New Jersey Realtors® Form 118Statewide 4/17 Page 4 of 13
Buyer's Seller's
Initials:
175
Title to the Property shall be good, marketable and insurable, at regular rates, by any title insurance company licensed to do business
176
in New Jersey, subject only to the claims and rights described in this section and Section 12. Buyer agrees to order a title insurance
177
commitment (title search) and survey, if required by Buyer's lender, title company or the municipality where the Property is located,
178
and to furnish copies to Seller. If Seller's title contains any exceptions other than as set forth in this section, Buyer shall notify Seller
179
and Seller shall have thirty (30) calendar days within which to eliminate those exceptions. Seller represents, to the best of Seller's
180
knowledge, that there are no restrictions in any conveyance or plans of record that will prohibit use and/or occupancy of the Property
181
as a family residential dwelling. Seller represents that all buildings and other improvements on the Property are
182
within its boundary lines and that no improvements on adjoining properties extend across boundary lines of the Property.
183
184
If Seller is unable to transfer the quality of title required and Buyer and Seller are unable to agree upon a reduction of the purchase
185
price, Buyer shall have the option to either void this Contract, in which case the monies paid by Buyer toward the purchase price shall
186
be returned to Buyer, together with the actual costs of the title search and the survey and the mortgage application fees in preparing for
187
the Closing without further liability to Seller, or to proceed with the Closing without any reduction of the purchase price.
188
189
12. POSSESSION, OCCUPANCY AND TENANCIES:
190
(A) Possession and Occupancy.
191
Possession and occupancy will be given to Buyer at the Closing. Buyer shall be entitled to possession of the Property, and any rents or
192
profits from the Property, immediately upon the delivery of the Deed and the Closing. Seller shall pay off any person with a claim or right
193
affecting the Property from the proceeds of this sale at or before the Closing.
194
195
(B) Tenancies. Applicable Not Applicable
196
Occupancy will be subject to the tenancies listed below as of Closing. Seller represents that the tenancies are not in violation of any
197
existing Municipal, County, State or Federal rules, regulations or laws. Seller agrees to transfer all security deposits to Buyer at the Closing
198
and to provide to Brokers and Buyer a copy of all leases concerning the tenancies, if any, along with this Contract when it is signed by
199
Seller. Seller represents that such leases can be assigned and that Seller will assign said leases, and Buyer agrees to accept title subject to
200
these leases.
201
202
TENANT'S NAME LOCATION RENT SECURITY DEPOSIT TERM
203
204
205
206
207
208
13. LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARD: (This section is applicable only to all dwellings
209
built prior to 1978.) Applicable Not Applicable
210
(A) Document Acknowledgement.
211
Buyer acknowledges receipt of the EPA pamphlet entitled “Protect Your Family From Lead In Your Home.” Moreover, a copy of a
212
document entitled “Disclosure of Information and Acknowledgement LeadBased Paint and LeadBased Paint Hazards” has been fully
213
completed and signed by Buyer, Seller and Broker(s) and is appended to” and made a part of this Contract.
214
215
(B) Lead Warning Statement.
216
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such
217
property may present exposure to lead from leadbased paint that may place young children at risk of developing lead poisoning. Lead
218
poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient,
219
behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest
220
in residential real property is required to provide the buyer with any information on leadbased paint hazards from risk assessments or
221
inspections in the seller's possession and notify the buyer of any known leadbased paint hazards. A risk assessment or inspection for
222
possible leadbased paint hazards is recommended prior to purchase.
223
224
(C) Inspection.
225
The law requires that, unless Buyer and Seller agree to a longer or shorter period, Seller must allow Buyer a ten (10) day period
226
within which to complete an inspection and/or risk assessment of the Property as set forth in the next paragraph. Buyer, however, has the
227
right to waive this requirement in its entirety.
228
229
This Contract is contingent upon an inspection and/or risk assessment (the “Inspection”) of the Property by a certified inspector/risk
230
assessor for the presence of leadbased paint and/or leadbased paint hazards. The Inspection shall be ordered and obtained by Buyer at
231
Buyer's expense within ten (10) calendar days after the attorneyreview period is completed or, if this Contract is timely disapproved by an
232
attorney as provided in the AttorneyReview Clause Section of this Contract, then within ten (10) days after the parties agree to
233
the terms in this Contract (“Completion Date”). If the Inspection indicates that no leadbased paint or leadbased paint hazard is present
234
at the Property, this contingency clause shall be deemed null and void. If the Inspection indicates that leadbased paint or leadbased paint
235
hazard is present at the Property, this contingency clause will terminate at the time set forth above unless, within five (5) business days from
236
the Completion Date, Buyer delivers a copy of the inspection and/or risk assessment report to Seller and Brokers and (1) advises Seller
237
and Brokers, in writing that Buyer is voiding this Contract; or (2) delivers to Seller and Brokers a written amendment (the “Amendment”)
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to this Contract listing the specific existing deficiencies and corrections required by Buyer. The Amendment shall provide that Seller
239
agrees to (a) correct the deficiencies; and (b) furnish Buyer with a certification from a certified inspector/risk assessor that the deficiencies
240
have been corrected, before the Closing. Seller shall have (if left blank, then 3) business days after receipt of the Amendment
241
to sign and return it to Buyer or send a written counterproposal to Buyer. If Seller does not sign and return the Amendment or fails to
242
offer a counterproposal, this Contract shall be null and void. If Seller offers a counterproposal, Buyer shall have (if left
243
blank, then 3) business days after receipt of the counterproposal to accept it. If Buyer fails to accept the counterproposal within the time
244
limit provided, this Contract shall be null and void.
245
246
14. POINT-OF-ENTRY TREATMENT (“POET”) SYSTEMS:
Applicable Not Applicable
247
A pointofentry treatment (“POET”) system is a type of water treatment system used to remove contaminants from the water entering a
248
structure from a potable well, usually through a filtration process. Seller represents that a POET system has been installed to an existing
249
well on the Property and the POET system was installed and/or maintained using funds received from the New Jersey Spill Compensation
250
Fund Claims Program, N.J.S.A. 58:1023.11, et seq. The Buyer understands that Buyer will not be eligible to receive any such funds for the
251
continued maintenance of the POET system. Pursuant to N.J.A.C. 7:1J2.5(c), Seller agrees to notify the Department of Environmental
252
Protection within thirty (30) calendar days of executing this Contract that the Property is to be sold.
253
254
15. CESSPOOL REQUIREMENTS: Applicable Not Applicable
255
(This section is applicable if the Property has a cesspool, except in certain limited circumstances set forth in N.J.A.C.
256
7:9A-3.16.) Pursuant to New Jersey's Standards for Individual Subsurface Sewage Disposal Systems, N.J.A.C. 7:9A (the “Standards”), if
257
this Contract is for the sale of real property at which any cesspool, privy, outhouse, latrine or pit toilet (collectively “Cesspool”) is located,
258
the Cesspool must be abandoned and replaced with an individual subsurface sewage disposal system at or before the time of the real
259
property transfer, except in limited circumstances.
260
261
(A) Seller represents to Buyer that
no Cesspool is located at or on the Property, or one or more Cesspools are located at or on the
262
Property. [If there are one or more Cesspools, then also check EITHER Box 1 or 2 below.]
263
264
1. Seller agrees that, prior to the Closing and at its sole cost and expense, Seller shall abandon and replace any and all Cesspools
265
located at or on the Property and replace such Cesspools with an individual subsurface sewage disposal system (“System”) meeting all
266
the requirements of the Standards. At or prior to the Closing, Seller shall deliver to Buyer a certificate of compliance (“Certificate of
267
Compliance”) issued by the administrative authority (“Administrative Authority”) (as those terms are defined in N.J.A.C. 7:9A2.1) with
268
respect to the System. Notwithstanding the foregoing, if the Administrative Authority determines that a fully compliant system cannot
269
be installed at the Property, then Seller shall notify Buyer in writing within three (3) business days of its receipt of the Administrative
270
Authority's determination of its intent to install either a nonconforming System or a permanent holding tank, as determined by the
271
Administrative Authority ( “Alternate System”), and Buyer shall then have the right to void this Contract by notifying Seller in writing
272
within seven (7) business days of receipt of the notice from Seller. If Buyer fails to timely void this Contract, Buyer shall have waived its
273
right to cancel this Contract under this paragraph, and Seller shall install the Alternate System and, at or prior to the Closing, deliver
274
to Buyer such Certificate of Compliance or other evidence of approval of the Alternate System as may be issued by the Administrative
275
Authority. The delivery of said Certificate of Compliance or other evidence of approval shall be a condition precedent to the Closing; or
276
277
2. Buyer agrees that, at its sole cost and expense, Buyer shall take all actions necessary to abandon and replace any and all Cesspools
278
located at or on the Property and replace such Cesspools with a System meeting all the requirements of the Standards or an Alternate
279
System. Buyer shall indemnify and hold Seller harmless for any and all costs, damages, claims, fines, penalties and assessments (including
280
but not limited to reasonable attorneys' and experts' fees) arising from Buyer's violation of this paragraph. This paragraph shall survive
281
the Closing.
282
283
(B)
If prior to the Closing, either Buyer or Seller becomes aware of any Cesspool at or on the Property that was not disclosed by Seller
284
at or prior to execution of this Contract, the party with knowledge of the newly identified Cesspool shall promptly, but in no event later
285
than three (3) business days after receipt of such knowledge, advise the other party of the newly identified Cesspool in writing. In such
286
event, the parties in good faith shall agree, no later than seven (7) business days after sending or receiving the written notice of the newly
287
identified Cesspool, or the day preceding the scheduled Closing, whichever is sooner, to proceed pursuant to subsection (A) 1 or 2 above
288
or such other agreement as satisfies the Standards, or either party may terminate this Contract.
289
290
16. INSPECTION CONTINGENCY CLAUSE:
291
(A) Responsibilities of Home Ownership.
292
Buyer and Seller acknowledge and agree that, because the purchase of a home is one of the most significant investments a person can
293
make in a lifetime, all aspects of this transaction require considerable analysis and investigation by Buyer before closing title to the
294
Property. While Brokers and salespersons who are involved in this transaction are trained as licensees under the New Jersey Licensing Act
295
they readily acknowledge that they have had no special training or experience with respect to the complexities pertaining to the multitude
296
of structural, topographical and environmental components of this Property. For example, and not by way of limitation, Brokers and
297
salespersons have no special training, knowledge or experience with regard to discovering and/or evaluating physical defects, including
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structural defects, roof, basement, mechanical equipment, such as heating, air conditioning, and electrical systems, sewage, plumbing,
299
exterior drainage, termite, and other types of insect infestation or damage caused by such infestation. Moreover, Brokers and salespersons
300
similarly have no special training, knowledge or experience with regard to evaluation of possible environmental conditions which might
301
affect the Property pertaining to the dwelling, such as the existence of radon gas, formaldehyde gas, airborne asbestos fibers, toxic
302
chemicals, underground storage tanks, lead, mold or other pollutants in the soil, air or water.
303
304
(B) Radon Testing, Reports and Mitigation.
305
(Radon is a radioactive gas which results from the natural breakdown of uranium in soil, rock and water. It has been
306
found in homes all over the United States and is a carcinogen. For more information on radon, go to www.epa.gov/
307
radon/pubs/citguide.html and www.nj.gov/dep/rpp/radon or call the NJ Radon Hot Line at 800-648-0394 or 609-984- 5425.)
308
309
If the Property has been tested for radon prior to the date of this Contract, Seller agrees to provide to Buyer, at the time of the execution
310
of this Contract, a copy of the result of the radon test(s) and evidence of any subsequent radon mitigation or treatment of the Property.
311
In any event, Buyer shall have the right to conduct a radon inspection/test as provided and subject to the conditions set forth in paragraph
312
(D) below. If any test results furnished or obtained by Buyer indicate a concentration level of 4 picocuries per liter (4.0 pCi/L) or more in
313
the subject dwelling, Buyer shall then have the right to void this Contract by notifying Seller in writing within seven (7) business days of the
314
receipt of any such report. For the purposes of this Section 16, Seller and Buyer agree that, in the event a radon gas concentration level
315
in the subject dwelling is determined to be less than 4 picocuries per liter (4.0 pCi/L) without any remediation, such level of radon gas
316
concentration shall be deemed to be an acceptable level (“Acceptable Level”) for the purposes of this Contract. Under those circumstances,
317
Seller shall be under no obligation to remediate, and this contingency clause as it relates to radon shall be deemed fully satisfied.
318
319
If Buyer's qualified inspector reports that the radon gas concentration level in the subject dwelling is four picocuries per liter (4.0 pCi/L)
320
or more, Seller shall have a seven (7) business day period after receipt of such report to notify Buyer in writing that Seller agrees to
321
remediate the gas concentration to an Acceptable Level (unless Buyer has voided this Contract as provided in the preceding paragraph).
322
Upon such remediation, the contingency in this Contract which relates to radon shall be deemed fully satisfied. If Seller fails to notify
323
Buyer of Seller's agreement to so remediate, such failure to so notify shall be deemed to be a refusal by Seller to remediate the radon level
324
to an Acceptable Level, and Buyer shall then have the right to void this Contract by notifying Seller in writing within seven (7) calendar
325
days thereafter. If Buyer fails to void this Contract within the seven (7) day period, Buyer shall have waived Buyer's right to cancel
326
this Contract and this Contract shall remain in full force and effect, and Seller shall be under no obligation to remediate the radon gas
327
concentration. If Seller agrees to remediate the radon to an Acceptable Level, such remediation and associated testing shall be completed
328
by Seller prior to the Closing.
329
330
(C) Infestation and/or Damage By Wood Boring Insects.
331
Buyer, shall have the right to have the Property inspected by a licensed exterminating company of Buyer's choice, for the purpose of
332
determining if the Property is free from infestation and damage from termites or other wood destroying insects. If Buyer chooses to make
333
this inspection, Buyer shall pay for the inspection unless Buyer's lender prohibits Buyer from paying, in which case Seller shall pay. The
334
inspection must be completed and written reports must be furnished to Seller and Broker(s) within (if left blank, then 14) calendar
335
days after the attorneyreview period is completed or, if this Contract is timely disapproved by an attorney as provided in the Attorney
336
Review Clause Section of this Contract, then within (if left blank, then 14) calendar days after the parties agree to the terms of this
337
Contract. This report shall state the nature and extent of any infestation and/or damage and the full cost of treatment for any infestation.
338
Seller agrees to treat any infestation and cure any damage at Seller's expense prior to Closing, provided however, if the cost to cure exceeds
339
1% of the purchase price of the Property, then either party may void this Contract provided they do so within (if left blank, then 7)
340
business days after the report has been delivered to Seller and Brokers. If Buyer and Seller are unable to agree upon who will pay for the
341
cost to cure and neither party timely voids this Contract, then Buyer will be deemed to have waived its right to terminate this Contract
342
and will bear the cost to cure that is over 1% of the purchase price, with Seller bearing the cost that is under 1% of the purchase price.
343
344
(D) Buyer's Right to Inspections.
345
Buyer acknowledges that the Property is being sold in an “as is” condition and that this Contract is entered into based upon the knowledge
346
of Buyer as to the value of the land and whatever buildings are upon the Property, and not on any representation made by Seller, Brokers
347
or their agents as to character or quality of the Property. Therefore, Buyer, at Buyer's sole cost and expense, is granted the right to have
348
the dwelling and all other aspects of the Property, inspected and evaluated by “qualified inspectors” (as the term is defined in subsection
349
G below) for the purpose of determining the existence of any physical defects or environmental conditions such as outlined above. If
350
Buyer chooses to make inspections referred to in this paragraph, such inspections must be completed, and written reports including a list
351
of repairs Buyer is requesting must be furnished to Seller and Brokers within (if left blank, then 14) calendar days after the attorney
352
review period is completed or, if this Contract is timely disapproved by an attorney as provided in the AttorneyReview Clause Section
353
of this Contract, then within (if left blank, then 14) calendar days after the parties agree to the terms of this Contract. If Buyer fails
354
to furnish such written reports to Seller and Brokers within the (if left blank, then 14) calendar days specified in this paragraph,
355
this contingency clause shall be deemed waived by Buyer, and the Property shall be deemed acceptable by Buyer. The time period for
356
furnishing the inspection reports is referred to as the “Inspection Time Period.” Seller shall have all utilities in service for inspections.
357
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358
(E) Responsibility to Cure.
359
If any physical defects or environmental conditions (other than radon or woodboring insects) are reported by the qualified inspectors to
360
Seller within the Inspection Time Period, Seller shall then have seven (7) business days after the receipt of such reports to notify Buyer
361
in writing that Seller shall correct or cure any of the defects set forth in such reports. If Seller fails to notify Buyer of Seller's agreement
362
to so cure and correct, such failure to so notify shall be deemed to be a refusal by Seller to cure or correct such defects. If Seller fails to
363
agree to cure or correct such defects within the seven (7) business day period, or if the environmental condition at the Property (other
364
than radon) is incurable and is of such significance as to unreasonably endanger the health of Buyer, Buyer shall then have the right to
365
void this Contract by notifying Seller in writing within seven (7) business days thereafter. If Buyer fails to void this Contract within the
366
seven (7) business day period, Buyer shall have waived Buyer's right to cancel this Contract and this Contract shall remain in full force,
367
and Seller shall be under no obligation to correct or cure any of the defects set forth in the inspections. If Seller agrees to correct or cure
368
such defects, all such repair work shall be completed by Seller prior to the closing of title. Radon at the Property shall be governed by
369
the provisions of Paragraph (B), above.
370
371
(F) Flood Hazard Area (if applicable).
372
The federal and state governments have designated certain areas as flood areas. If the Property is located in a flood area, the use of the
373
Property may be limited. If Buyer's inquiry reveals that the Property is in a flood area, Buyer may cancel this Contract within ten (10)
374
calendar days after the attorneyreview period is completed or, if this Contract is timely disapproved by an attorney as provided in the
375
AttorneyReview Clause Section of this Contract, then within ten (10) calendar days after the parties agree to the terms of this Contract.
376
If the mortgage lender requires flood insurance, then Buyer shall be responsible for obtaining such insurance on the Property. For a flood
377
policy to be in effect immediately, there must be a loan closing. There is a (30) calendar day wait for flood policies to be in effect for
378
cash transactions. Therefore, cash buyers are advised to make application and make advance payment for a flood policy at least thirty
379
(30) calendar days in advance of closing if they want coverage to be in effect upon transfer of title.
380
381
Buyer's mortgage lender may require Buyer to purchase flood insurance in connection with Buyer's purchase of this Property. The
382
National Flood Insurance Program (“NFIP”) provides for the availability of flood insurance but also establishes flood insurance policy
383
premiums based on the risk of flooding in the area where properties are located. Due to amendments to federal law governing the
384
NFIP, those premiums are increasing and, in some cases, will rise by a substantial amount over the premiums previously charged for
385
flood insurance for the Property. As a result, Buyer should not rely on the premiums paid for flood insurance on this Property previously
386
as an indication of the premiums that will apply after Buyer completes the purchase. In considering Buyer's purchase of this Property,
387
Buyer is therefore urged to consult with one or more carriers of flood insurance for a better understanding of flood insurance coverage,
388
the premiums that are likely to be required to purchase such insurance and any available information about how those premiums may
389
increase in the future.
390
391
(G) Qualifications of Inspectors.
392
Where the term “qualified inspectors” is used in this Contract, it is intended to refer to persons or businesses that are licensed or certified
393
by the State of New Jersey for such purpose.
394
395
17. MEGAN'S LAW STATEMENT:
396
Under New Jersey law, the county prosecutor determines whether and how to provide notice of the presence of convicted sex offenders
397
in an area. In their professional capacity, real estate licensees are not entitled to notification by the county prosecutor under Megan's Law
398
and are unable to obtain such information for you. Upon closing, the county prosecutor may be contacted for such further information
399
as may be disclosable to you.
400
401
18. MEGAN'S LAW REGISTRY:
402
Buyer is notified that New Jersey law establishes an Internet Registry of Sex Offenders that may be accessed at www.njsp.org. Neither
403
Seller or any real estate broker or salesperson make any representation as to the accuracy of the registry.
404
405
19. NOTIFICATION REGARDING OFF-SITE CONDITIONS: (Applicable to all resale transactions.)
406
Pursuant to the New Residential Construction OffSite Conditions Disclosure Act, N.J.S.A. 46:3C1, et. seq, the clerks of municipalities
407
in New Jersey maintains lists of offsite conditions which may affect the value of residential properties in the vicinity of the offsite
408
condition. Buyers may examine the lists and are encouraged to independently investigate the area surrounding this property in order
409
to become familiar with any offsite conditions which may affect the value of the property. In cases where a property is located near the
410
border of a municipality, buyers may wish to also examine the list maintained by the neighboring municipality.
411
412
20 AIR SAFETY AND ZONING NOTICE:
413
Any person who sells or transfers a property that is in an airport safety zone as set forth in the New Jersey Air Safety and Zoning Act of
414
1983, N.J.S.A. 6:180, et seq., and appearing on a municipal map used for tax purposes as well as Seller's agent, shall provide notice to
415
a prospective buyer that the property is located in an airport safety zone prior to the signing of the contract of sale. The Air Safety and
416
Zoning Act also requires that each municipality in an airport safety zone enact an ordinance or ordinances incorporating the standards
417
promulgated under the Act and providing for their enforcement within the delineated areas in the municipality. Buyer acknowledges
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418
receipt of the following list of airports and the municipalities that may be affected by them and that Buyer has the responsibility to
419
contact the municipal clerk of any affected municipality concerning any ordinance that may affect the Property.
420
421
Municipality
422
Alexandria Tp.
423
Andover Tp.
424
Bedminister Tp.
425
Berkeley Tp.
426
Berlin Bor.
427
Blairstown Tp.
428
Branchburg Tp.
429
Buena Bor. (Atlantic Cty.)
430
Dennis Tp.
431
Eagleswood Tp.
432
Ewing Tp.
433
E. Hanover Tp.
434
Florham Park Bor.
435
Franklin Tp. (Gloucester Cty.)
436
Franklin Tp. (Hunterdon Cty.)
437
Franklin Tp. (Somerset Cty.)
438
Green Tp.
439
Hammonton Bor.
440
Hanover Tp.
441
Hillsborough Tp.
442
Hopewell Tp. (Mercer Cty.)
443
Howell Tp.
444
Lacey Tp.
445
Lakewood Tp.
446
Lincoln Park Bor.
447
Lower Tp.
448
Lumberton Tp.
Airport(s)
Alexandria & Sky Manor
AeroflexAndover & Newton
Somerset
Ocean County
Camden County
Blairstown
Somerset
VinelandDowntown
Woodbine Municipal
Eagles Nest
TrentonMercer County
Morristown Municipal
Morristown Municipal
Southern Cross & Vineland Downtown
Sky Manor
Central Jersey Regional
Trinca
Hammonton Municipal
Morristown Municipal
Central Jersey Regional
TrentonMercer County
Monmouth Executive
Ocean County
Lakewood
Lincoln Park
Cape May County
Flying W & South Jersey Regional
Municipality
Manalapan Tp. (Monmouth Cty.)
Mansfield Tp.
Manville Bor.
Medford Tp.
Middle Tp.
Millville
Monroe Tp. (Gloucester Cty.)
Monroe Tp. (Middlesex Cty.)
Montgomery Tp.
Ocean City
Old Bridge Tp.
Oldsman Tp.
Pemberton Tp.
Pequannock Tp.
Readington Tp.
Rocky Hill Boro.
Southampton Tp.
Springfield Tp.
Upper Deerfield Tp.
Vineland City
Wall Tp.
Wantage Tp.
Robbinsville
West Milford Tp.
Winslow Tp.
Woodbine Bor.
Airport(s)
Old Bridge
Hackettstown
Central Jersey Regional
Flying W
Cape May County
Millville Municipal
Cross Keys & Southern Cross
Old Bridge
Princeton
Ocean City
Old Bridge
Oldmans
Pemberton
Lincoln Park
SolbergHunterdon
Princeton
Red Lion
Red Wing
Bucks
Kroelinger & Vineland Downtown
Monmouth Executive
Sussex
TrentonRobbinsville
Greenwood Lake
Camden County
Woodbine Municipal
449
450
The following airports are not subject to the Airport Safety and Zoning Act because they are subject to federal regulation or within the
451
jurisdiction of the Port of Authority of New York and New Jersey and therefore are not regulated by New Jersey: Essex County Airport,
452
Linden Airport, Newark Liberty Airport, Teterboro Airport, Little Ferry Seaplane Base, Atlantic City International Airport, and
453
Maguire Airforce Base and NAEC Lakehurst.
454
455
21. BULK SALES:
456
The New Jersey Bulk Sales Law, N.J.S.A. 54:5038, (the “Law”) applies to the sale of certain residential property. Under the Law,
457
Buyer may be liable for taxes owed by Seller if the Law applies and Buyer does not deliver to the Director of the New Jersey Division
458
of Taxation (the “Division”) a copy of this Contract and a notice on a form required by the Division (the “Tax Form”) at least ten
459
(10) business days prior to the Closing. If Buyer decides to deliver the Tax Form to the Division, Seller shall cooperate with Buyer by
460
promptly providing Buyer with any information that Buyer needs to complete and deliver the Tax Form in a timely manner. Buyer
461
promptly shall deliver to Seller a copy of any notice that Buyer receives from the Division in response to the Tax Form.
462
463
The Law does not apply to the sale of a simple dwelling house, or the sale or lease of a seasonal rental property, if Seller is an
464
individual, estate or trust. A simple dwelling house is a one or two family residential building, or a cooperative or condominium unit
465
used as a residential dwelling, none of which has any commercial property. A seasonal rental property is a time share, or a dwelling unit
466
that is rented for residential purposes for a term of not more than 125 consecutive days, by an owner that has a permanent residence
467
elsewhere.
468
469
If, prior to the Closing, the Division notifies Buyer to withhold an amount (the “Tax Amount”) from the purchase price proceeds for
470
possible unpaid tax liabilities of Seller, Buyer's attorney or Buyer's title insurance company (the “Escrow Agent”) shall withhold the Tax
471
Amount from the closing proceeds and place that amount in escrow (the “Tax Escrow”). If the Tax Amount exceeds the amount of
472
available closing proceeds, Seller shall bring the deficiency to the Closing and the deficiency shall be added to the Tax Escrow. If the
473
Division directs the Escrow Agent or Buyer to remit funds from the Tax Escrow to the Division or some other entity, the Escrow Agent
474
or Buyer shall do so. The Escrow Agent or Buyer shall only release the Tax Escrow, or the remaining balance thereof, to Seller (or as
475
otherwise directed by the Division) upon receipt of written notice from the Division that it can be released, and that no liability will be
476
asserted under the Law against Buyer.
477
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Buyer's Seller's
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478
22. NOTICE TO BUYER CONCERNING INSURANCE:
479
Buyer should obtain appropriate casualty and liability insurance for the Property. Buyer's mortgage lender will require that such insurance
480
be in place at Closing. Occasionally, there are issues and delays in obtaining insurance. Be advised that a “binder” is only a temporary
481
commitment to provide insurance coverage and is not an insurance policy. Buyer is therefore urged to contact a licensed insurance agent
482
or broker to assist Buyer in satisfying Buyer's insurance requirements.
483
484
23. MAINTENANCE AND CONDITION OF PROPERTY:
485
Seller agrees to maintain the grounds, buildings and improvements, in good condition, subject to ordinary wear and tear. The premises
486
shall be in “broom clean” condition and free of debris as of the Closing. Seller represents that all electrical, plumbing, heating and air
487
conditioning systems (if applicable), together with all fixtures included within the terms of the Contract now work and shall be in proper
488
working order at the Closing. Seller further states, that to the best of Seller's knowledge, there are currently no leaks or seepage in the
489
roof, walls or basement. Seller does not guarantee the continuing condition of the premises as set forth in this Section after the Closing.
490
491
24. RISK OF LOSS:
492
The risk of loss or damage to the Property by fire or otherwise, except ordinary wear and tear, is the responsibility of Seller until
493
the Closing.
494
495
25. INITIAL AND FINAL WALK-THROUGHS:
496
In addition to the inspections set forth elsewhere in this Contract, Seller agrees to permit Buyer or Buyer's duly authorized
497
representative to conduct an initial and a final walkthrough inspection of the interior and exterior of the Property at any reasonable
498
time before the Closing. Seller shall have all utilities in service for the inspections.
499
500
26. ADJUSTMENTS AT CLOSING:
501
Seller shall pay for the preparation of the Deed, realty transfer fee, lien discharge fees, if any, and onehalf of the title company charges
502
for disbursements and attendance allowed by the Commissioner of Insurance; but all searches, title insurance premium and other
503
conveyancing expenses are to be paid for by Buyer.
504
505
Seller and Buyer shall make prorated adjustments at Closing for items which have been paid by Seller or are due from Seller, such as real
506
estate taxes, water and sewer charges that could be claims against the Property, rental and security deposits, association and condominium
507
dues, and fuel in Seller's tank. Adjustments of fuel shall be based upon physical inventory and pricing by Seller's supplier. Such determi
508
nation shall be conclusive.
509
510
If Buyer is assuming Seller's mortgage loan, Buyer shall credit Seller for all monies, such as real estate taxes and insurance premiums paid
511
in advance or on deposit with Seller's mortgage lender. Buyer shall receive a credit for monies, which Seller owes to Seller's Mortgage
512
lender, such as current interest or a deficit in the mortgage escrow account.
513
514
If the Property is used or enjoyed by not more than four families and the purchase price exceeds $1,000,000, then pursuant to N.J.S.A.
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46:157.2, Buyer will be solely responsible for payment of the fee due for the transfer of the Property, which is the socalled “Mansion
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“Tax, in the amount of one (1%) percent of the purchase price.
517
518
Unless an exemption applies, nonresident individuals, estates, or trusts that sell or transfer real property in New Jersey are required to
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make an estimated gross income tax payment to the State of New Jersey on the gain from a transfer/sale of real property (the socalled
520
“Exit Tax,”) as a condition of the recording of the deed.
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If Seller is a foreign person (an individual, corporation or entity that is a nonUS resident) under the Foreign Investment in Real
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Property Tax Act of 1980, as amended (“FIRPTA”), then with a few exceptions, a portion of the proceeds of sale may need to be
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withheld from Seller and paid to the Internal Revenue Service as an advance payment against Seller's tax liability.
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Seller agrees that, if applicable, Seller will (a) be solely responsible for payment of any state or federal income tax withholding amount(s)
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required by law to be paid by Seller (which Buyer may deduct from the purchase price and pay at the Closing); and (b) execute
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and deliver to Buyer at the Closing any and all forms, affidavits or certifications required under state and federal law to be filed in
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connection with the amount(s) withheld.
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531
There shall be no adjustment on any Homestead Rebate due or to become due.
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27. FAILURE OF BUYER OR SELLER TO CLOSE:
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If Seller fails to close title to the Property in accordance with this Contract, Buyer then may commence any legal or equitable action
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to which Buyer may be entitled. If Buyer fails to close title in accordance with this Contract, Seller then may commence an action
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for damages it has suffered, and, in such case, the deposit monies paid on account of the purchase price shall be applied against such
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damages. If Buyer or Seller breach this Contract, the breaching party will nevertheless be liable to Brokers for the commissions in the
New Jersey Realtors® Form 118Statewide 4/17 Page 10 of 13
Buyer's Seller's
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Common mistakes

  1. Neglecting to Read the Entire Form: Many buyers and sellers skim through the New Jersey 118 form without thoroughly reading all sections. This can lead to misunderstandings about their rights and obligations.

  2. Failing to Provide Accurate Information: Inaccuracies in personal information, such as names and addresses, can create significant issues later in the transaction. Ensuring all details are correct is essential.

  3. Not Consulting a Lawyer: Some individuals choose to fill out the form without legal advice, which can be risky. A lawyer can provide guidance on complex terms and conditions that may not be immediately clear.

  4. Overlooking Deadlines: The form includes critical deadlines, such as the three-business-day period for attorney review. Missing these deadlines can result in a binding contract without the opportunity for renegotiation or cancellation.

Dos and Don'ts

When filling out the New Jersey 118 form, it is essential to approach the process with care. Here are some important guidelines to follow:

  • Read the entire form carefully. Understanding every section will help you make informed decisions.
  • Consult with a lawyer. If you have questions or concerns, legal advice can be invaluable before signing.
  • Be accurate in your disclosures. Ensure that all information regarding the purchase price and property details is correct.
  • Include all necessary documents. Attach any required paperwork, such as the MLS sheet, to avoid delays.

Conversely, there are also things to avoid when completing the form:

  • Do not rush through the process. Taking your time can prevent mistakes that may lead to legal issues later.
  • Do not assume the broker or title company will protect your interests. Their primary goal is often to facilitate the sale, not to advise you.
  • Avoid leaving sections blank. Incomplete information can lead to misunderstandings or disputes.
  • Do not ignore deadlines. Timely responses and actions are critical to ensure the contract remains valid.

Similar forms

The New Jersey 118 form shares similarities with the New Jersey Attorney Review Notice. This document also informs buyers and sellers about their rights and responsibilities during a real estate transaction. It emphasizes the importance of consulting with an attorney to understand the contract fully. Just like the 118 form, the Attorney Review Notice outlines the potential risks involved in the transaction and the necessity of legal advice to navigate any issues that may arise. Both documents aim to ensure that all parties are aware of the legal implications of their decisions.

When navigating the process of buying or selling a boat in Louisiana, it is essential to utilize the correct documentation, particularly the Louisiana Boat Bill of Sale form, which you can learn more about through the Vessel Bill of Sale. This form not only serves as vital proof of ownership transfer but also captures all necessary details regarding the vessel and the parties involved, ensuring a transparent and compliant transaction.

Another document akin to the New Jersey 118 form is the New Jersey Real Estate Sales Contract. This contract serves as the primary agreement between buyers and sellers, detailing the terms of the sale. Similar to the 118 form, it highlights the importance of understanding the contract's terms before signing. Both documents stress that the contract is legally binding and that any changes or cancellations should be handled through legal counsel. They both aim to protect the interests of the parties involved by ensuring clarity and understanding.

The New Jersey Property Disclosure Statement is another related document. This statement requires sellers to disclose known issues with the property, such as structural defects or environmental hazards. Like the 118 form, it emphasizes transparency in the transaction process. Both documents aim to inform buyers about potential risks associated with the property, allowing them to make informed decisions. The Property Disclosure Statement complements the 118 form by providing specific details about the property's condition, which is crucial for buyers.

The New Jersey Lead-Based Paint Disclosure is also similar to the New Jersey 118 form. This document is particularly relevant for homes built before 1978, as it requires sellers to inform buyers about the risks of lead-based paint. Like the 118 form, it aims to protect buyers by ensuring they are aware of potential hazards before making a purchase. Both documents emphasize the importance of conducting inspections and understanding the implications of the findings, thereby promoting safety and informed decision-making.

The New Jersey Home Inspection Contingency is another document that aligns with the New Jersey 118 form. This contingency allows buyers to have the property inspected before finalizing the sale. Similar to the 118 form, it underscores the importance of understanding the property's condition and any issues that may affect its value. Both documents encourage buyers to seek professional advice and take necessary precautions to avoid potential pitfalls during the transaction.

The New Jersey Title Insurance Policy is also comparable to the New Jersey 118 form. This policy protects buyers from potential issues related to the property's title, such as liens or ownership disputes. Like the 118 form, it emphasizes the importance of having a clear understanding of the property’s legal status before completing the sale. Both documents serve to safeguard the buyer's interests, ensuring that they are protected against unforeseen legal challenges after the purchase.

Additionally, the New Jersey Closing Disclosure is similar to the New Jersey 118 form. This document outlines the final terms of the mortgage, including closing costs and fees. Both documents stress the importance of reviewing all financial aspects of the transaction carefully. They aim to ensure that buyers and sellers are fully informed about the financial implications of their agreement, fostering transparency and trust throughout the process.

The New Jersey Mortgage Commitment Letter also bears resemblance to the New Jersey 118 form. This letter is issued by a lender to confirm that a buyer is approved for a mortgage. Like the 118 form, it highlights the importance of securing financing before proceeding with the purchase. Both documents aim to protect buyers by ensuring that they have the necessary funds to complete the transaction, thus reducing the risk of financial complications later on.

Lastly, the New Jersey Offer to Purchase is comparable to the New Jersey 118 form. This document is used by buyers to formally propose their terms for purchasing a property. Similar to the 118 form, it emphasizes the importance of clear communication and understanding between buyers and sellers. Both documents serve as foundational elements in the real estate transaction process, ensuring that all parties are aligned on the terms before moving forward.