Buyer + Seller Resource

New Jersey Real Estate Purchase Process

A clear, step-by-step overview of how a typical residential transaction works in New Jersey —
including attorney review, inspections, financing, title, and closing.

Timeline: How a New Jersey Purchase Typically Moves

While every transaction is unique, most NJ purchases follow this sequence. The key difference vs. many states is the
three-business-day attorney review period after contract signing.

1

Offer & Acceptance

Buyer and seller agree on price and key terms. A contract is signed, but it is not fully binding yet.

Competitive Offers, Bidding Wars & “Highest and Best”

In many New Jersey markets, particularly for well-priced homes, sellers may receive
multiple offers shortly after a property is listed. When this occurs, the seller may
ask interested buyers to submit their “highest and best” offer.

A highest and best request typically means the seller is asking buyers to present
their strongest overall terms — not just price. This may include:

  • Purchase price
  • Deposit structure
  • Financing terms or proof of funds
  • Inspection flexibility
  • Proposed closing timeline

There is no standardized formula for highest and best. Sellers are not required to
accept the highest price if another offer presents fewer risks or greater certainty.

Once a highest and best offer is submitted and accepted, the transaction proceeds to
contract signing and attorney review, where terms are finalized.

Optional One-Line Clarifier (recommended)
This helps NYC buyers especially.

Important: A highest and best request is not a binding acceptance.
The seller may still choose among offers or elect not to proceed.

2

Attorney Review (3 Business Days)

All NJ Residential contracts prepared by real estate brokers include a three-business-day attorney review period. Attorneys review the contract and propose revisions. Either party can cancel during this window. Terms can be changed or renegotiated. The contract becomes binding only after both sides sign the contract rider, which concludes attorney review.
(It is possible to transact without an attorney, but that is very uncommon, and can complicate matters.

3

Under Contract (Contract Becomes Binding)

Once attorney review ends:

  • The contract is fully enforceable
  • The deposit is typically due within 10 days
  • The appraisal is typically ordered at this point
  • Deadlines and contingencies now matter

4

Inspections

Buyer has a mutually agreed upon window of time to conduct inspections. In addition to the general home inspection, buyers may elect to perform specialty inspections or additional "level 2" inspections for radon, pool, elevator, sprinkler system, waste line, septic, well, specialty roofs, synthetic stucco, chimney, car lift systems, and/or many others... Findings are negotiated and resolved.

5

Mortgage + Appraisal (If Financing)

Lender obtains an appraisal (loan amounts of $2m+ often require more than one appraisal) and the lender completes underwriting. Buyer satisfies lender conditions leading to final approval.
(Cash transactions often move faster0

6

Title Search + Closing Prep

Title is reviewed for liens or issues, closing documents are prepared, final numbers are confirmed, and a "final walkthrough" is scheduled / performed.

7

Closing Day

Documents are signed, funds are transferred, ownership changes hands, and keys are released to the buyer.

Typical closing: 30–60 days after attorney review
Cash purchases often move faster
Inspection + financing are common timing drivers

Quick Explainer Video

Prefer the short version? This explains attorney review and the overall timeline in under two minutes.

New Jersey vs. New York: Key Differences

Many NYC buyers are surprised by New Jersey’s attorney review system. This comparison highlights the major process differences.

Topic New Jersey New York
Attorney review 3 business days after contract signing (for broker-prepared residential contracts) Commonly completed before signing; process varies by transaction and attorneys
When the contract is binding After attorney review concludes Upon execution (once signed by both parties)
Early-stage flexibility Higher flexibility during attorney review Less flexibility once executed
Common timing drivers Inspections, underwriting, appraisal, and closing logistics Board approval (co-ops), financing timelines, closing coordination

FAQ

Quick answers to common NJ purchase questions, especially for first-time and NYC-area buyers.

How much is earnest money in New Jersey?
Earnest money is often in the 1–3% range, but it varies based on price point, competition,
and negotiated terms.
Can the deal fall apart during attorney review?
Yes. During the three-business-day attorney review period, either party can cancel.
Once attorney review ends, the contract becomes binding and cancellations typically require a contractual basis.
Does attorney review delay closings?
Usually not. Most timing issues come from inspections, financing, appraisal, title items, and closing coordination —
not the attorney review period itself.
How long does a typical NJ transaction take?
Many purchases close about 30–60 days after attorney review, depending on financing,
inspection negotiations, appraisal timing, and any property-specific issues.

Next Steps + Helpful Resources

If you’d like guidance on timing, strategy, or offer structure for a specific property, a private consultation can help clarify next steps.