Selling a house in New Jersey

To succeed at selling a house in New Jersey in 2025, you’ll need to follow the legal requirements, complete the right tax forms, and budget for the closing costs required by law.

If you’re considering a home sale in New Jersey or planning to sell your house, follow these essential tips:

• Comply with all required legal disclosures and prepare the tax documentation needed for closing.
• Estimate taxes and associated costs in advance to understand your true net proceeds.

It’s also wise to research the best places to buy a home in New Jersey if you plan to reinvest, optimizing both timing and taxes.

In the following lines you’ll find a practical guide with everything you need to know to sell successfully in NJ.

Key things to consider when selling a house in New Jersey 

Selling a home in New Jersey is more than just setting a price. The process involves mandatory disclosures, potential inspections, and a properly recorded closing with the corresponding county or municipality.

By law, the seller must disclose in writing any known material defect that affects the habitability or value of the property, such as structural damage, leaks, system issues, or code violations.

Although there is no statewide mandatory form, most agents use the Property Condition Disclosure Statement to meet this obligation.

There are two common approaches to a home sale in New Jersey:

• Selling a house “as is” in New Jersey: It’s legal, but it does not exempt the seller from disclosing defects or allow them to hide problems.
• Sale with pre-listing repairs or upgrades: This can increase market value and reduce time on market, although it requires up-front investment.

In both cases, transparency helps negotiations and avoids disputes later.

Legal obligations and required disclosures

When selling a house in New Jersey, the owner must comply with several legal obligations and mandatory disclosures designed to protect the buyer and ensure a transparent transaction. 

Even if a home sale in New Jersey is done “as is,” the law requires the seller to disclose in writing every known condition that could affect habitability or value.

These are the main obligations in effect for 2025:

• Material and latent defects: Include structural damage, leaks, issues with electrical, heating or AC systems, and municipal code violations. All must be disclosed in writing to the buyer.
• Boundary disputes and easements: The seller must disclose any boundary conflict or right of way, as it directly affects property use.
• Flood Disclosure Law (2023): Since March 2024, every seller must disclose if the property is in a flood zone or has suffered water damage.
• Lead-based paint (pre-1978): Provide all available reports or records showing the presence of lead.
• Zoning and permits: The seller must state that current use complies with local regulations and that all renovations were properly permitted.
• Stigmatized properties: The seller is not required to disclose criminal history or alleged paranormal activity, but if the buyer asks, they must answer truthfully.

Complying with these requirements is essential to avoid legal claims later and to build buyer trust. Ultimately, anyone who decides to sell their house should do so with full transparency and proper documentation.

Recommended disclosure form

The most important document in any home sale in New Jersey is the Property Condition Disclosure Statement (SPCDS). Since 2024, this form is used in residential transactions and requires the seller to detail the home’s physical and structural condition.

This document asks about:

• Roofing, 
• Foundations, 
• Electrical and plumbing systems, 
• Heating, 
• Air conditioning, 
• Environmental hazards, 
• Flood history, and 
• Renovations done with or without permits. 

Omitting relevant information can lead to penalties or even nullify the sale.

In short, anyone looking to sell a house safely should consider this form as essential as the deed or the purchase agreement.

Completing it accurately not only speeds up closing but also protects the seller from potential litigation later.

Required documents and forms

To properly complete a home sale in New Jersey, the owner must gather several legal and tax documents to ensure the transaction is valid, transparent, and acceptable to state and municipal authorities.

State tax forms (GIT/REP):

• GIT/REP-1: Gross Income Tax declaration for nonresident sellers.
• GIT/REP-2: Proof of estimated prepayment of state tax.
• GIT/REP-3: Certification of residency or exemption.
• GIT/REP-4: Special form used only in exceptional cases.

One of these forms must be submitted along with the deed recording when the transaction closes.

Common closing documentation:

• New Jersey property deed and purchase agreement.
• Affidavit of title.
• Closing statement with final cost and payment breakdown.
• Seller’s government-issued ID.
• Municipal certificate of occupancy, where required.
• HOA or condo forms, if applicable.

Attachments and supplemental disclosures:

• Flood risk disclosure.
• Lead-based paint disclosure (pre-1978 homes).
• Recent inspection or appraisal results.
• Copies of any active home warranties.

Preparing these documents in advance helps anyone planning to sell their house or complete a home sale in New Jersey to streamline the process and avoid delays at closing.

Taxes and costs when selling a house in New Jersey

When selling a house in New Jersey, the owner should plan for various state taxes and closing costs. Knowing them ahead of time avoids surprises and helps calculate your true net proceeds.

Key taxes in 2025

• Realty Transfer Fee (RTF): a state tax calculated on a progressive schedule based on the sale price. In most residential transactions, the total typically ranges between ~0.8% and 1.05%. Source: Treasury NJ – Realty Transfer Fee FAQ
• New Jersey Mansion Tax: This 1% surcharge applies to residential properties sold for $1 million or more. Although the law assigns it to the buyer, in practice many sellers contribute to it along with the RTF at closing.
• Exit Tax: Nonresidents must prepay at closing the greater of 2% of the gross sales price or 8.97% of the net gain.
• Capital gains: If the home was not your primary residence for at least 2 of the last 5 years, gains are taxed as ordinary income (rates from 1.4% to 10.75%).

Typical closing costs

• Real estate agent commission: Typically 5%–6% of the sale price.
• Attorney’s fees: Variable, but highly recommended.
• Title insurance: Includes title insurance in New Jersey.
• Municipal fees: Certificate of occupancy, recording and permits (≈ $200–$500).
• Repairs or buyer credits: Depending on the inspection.

Practical example (2025)

If a seller closes at $400,000 and pays a 6% commission, approximate costs could be:

• Agent commission: $24,000.
• Realty Transfer Fee (RTF): bracket-based; in this ballpark example, about $3,000–$4,000.
• Attorney fees and title insurance: around $3,000.
• Certificate of occupancy in New Jersey and other municipal fees: ≈ $500.

Estimated total: roughly $30,500–$31,500 (about 7.5%–8% of the sale price).

Understanding these figures helps anyone aiming to sell a house or sell property to set a competitive price and better plan the next purchase.

Step-by-step home selling process in New Jersey

The process to sell a house in New Jersey usually follows clear stages. Planning timelines and paperwork from the start helps anyone saying “I want to sell my house” avoid setbacks and maximize net value.

Typical steps include:

1. Hire professional guidance

New Jersey has an Attorney Review Period after signing the contract. During this window, both parties can review the agreement with counsel and propose changes or cancel without penalty. 

Working with a licensed agent and a real estate attorney streamlines the home sale in New Jersey.

2. Pick the right time to sell

Spring and early summer often bring higher prices and fewer days on market. Seasonality can vary by town, so plan your strategy—especially if you intend to reinvest in the best areas to buy a house in New Jersey.

3. Set a realistic price

A strong CMA (comparable sales by area, property type, and condition) prevents overpricing that can “burn” the listing. Align with your micro-market to attract qualified offers.

4. List, market, and negotiate

List on the MLS (syndicating to portals like Zillow or Trulia), prepare professional photos and descriptions, and schedule showings. 

When an offer arrives, negotiate price, repairs, costs, and dates with your agent and attorney, then sign the purchase agreement (subject to the attorney review period).

5. Appraisal and inspection

If there’s financing, the lender orders an appraisal in New Jersey. Buyers also hire a home inspection in New Jersey to review structure, systems, and environmental reports. 

If issues arise, negotiations reopen (repairs or credits).

6. Disclosures and pre-closing tasks

The seller must deliver all disclosures (material defects, flood risk, lead, etc.) and complete any municipal requirements.

7. Closing the deal

Lastly, parties sign the deed, affidavit of title, and closing statement, funds are transferred, and the deed is recorded with the county.

Residential purchase and sale agreement in New Jersey

The purchase and sale agreement defines terms, obligations, and contingencies. While it often starts from a standard form, each clause should be tailored to the case, especially if you want to understand how to sell a house while protecting your timelines and price.

Most important clauses in 2025

• Price and financing: Total amount, financed portion, and cash at closing.
• Financing contingency: Deadlines for mortgage application and approval.
• Inspection contingency: Scope, timing, and remedies (repair, credit, termination).
• Appraisal: If the appraised value is below price, renegotiation or cancellation may apply.
• Included/excluded items: Appliances, light fixtures, curtains, etc.
• Title and insurance: Responsibilities and timelines to review the property title and title policies.
• Closing and possession dates: Commonly 30–60 days from signing.
• Additional clauses: Condominiums, estate sales, seller financing, or back-to-back transactions.

Typical practical example

• Apply for the mortgage within 5 business days.
• Provide pre-approval within 14 days.
• Complete inspections within 10 days of signing.

Clear drafting strengthens the position of a homeowner who wants to sell property with reasonable timelines and minimal risk. This contract precision is decisive in a competitive home sale in New Jersey.

Escrow deposit in New Jersey

In every home sale in New Jersey, the escrow deposit serves as buyer good-faith money and protection for the seller. 

Funds are held in a trust account managed by a neutral third party (often an attorney or title company) until closing.

Key escrow points 

• Initial amount: Commonly 1%–2% of the purchase price. It’s negotiable based on property type and market competition.
• Additional deposits: After attorney review, buyers may make a second deposit, bringing the total to 3%–5%. In luxury or highly competitive deals, it can reach 10%.

Legal protection

• If the buyer defaults without valid cause, the seller may keep the deposit as liquidated damages.
• If the seller defaults or the sale fails for legitimate reasons (title, financing, inspection), the deposit is fully returned to the buyer.

Management and documentation

During the process, the escrow agent manages key documents:

• Title searches and reports.
• Insurance policies and proof of payment.
• Tax statements and municipal certificates.

Practical example: On a $500,000 sale, the buyer deposits 1% ($5,000) at contract and another 3% ($15,000) after inspections, totaling $20,000. If the buyer backs out without justification, the seller can retain the deposit. If the seller breaches, the deposit is refunded to the buyer.

Proper escrow management adds certainty and trust, key to selling a house in New Jersey without legal or financial surprises.

Closing process in New Jersey

Closing marks the end of the transaction. At this stage, final documents are signed, funds are transferred, and the deed is recorded with the county.

For anyone saying “I want to sell my house” without complications, understanding this step is crucial.

Key closing steps

1. Final title review: The attorney or title company confirms there are no outstanding liens or mortgages before authorizing closing.
2. Closing Disclosure: The lender provides this to the buyer at least three business days before closing, with final terms.
3. Final walk-through: The buyer checks the home’s condition and any agreed repairs.
4. Signing documents: Parties sign the deed, affidavit of title, and closing statement.
5. Transfer of funds: Via certified check or wire. The title company distributes funds to the seller, lender, and agents.
6. Official recording: The deed is recorded with the appropriate county. Although recording can take a few days, the buyer typically takes possession immediately.
7. Taxes and fees: Prorated taxes, legal fees, and municipal charges are paid.
8. Key delivery: With funds disbursed and the deed recorded, the buyer receives keys, officially completing the sale.

Practical tips to sell faster and for a better price

New Jersey’s real estate market is competitive, but the right strategies can help you sell a house in New Jersey faster and at a higher price. 

These tips also benefit anyone who wants to sell property or reinvest in the best places to buy a home in New Jersey.

High-ROI repairs

• Fresh interior paint: A small investment can yield more than 100% of its cost in resale value.
• Minor kitchen and bath updates: Simple upgrades (fixtures, tile, lighting) raise perceived value and draw more buyers.

Professional staging

• Decluttering, depersonalizing, and neutral styling make the home feel larger and brighter.
• In northern NJ counties, staged properties can sell up to 70% faster than non-staged homes.

Digital marketing and professional photography

• Professional photography can increase online views by about 40%.
• Pairing with local social media campaigns expands visibility.

Choosing the right time

Generally, April and May see the highest average prices, while June and July often bring faster sales. This pattern varies by county, but timing your listing in these months can maximize exposure.

Legal and real estate support

Working with a residential real estate attorney in NJ is essential to review contracts, manage escrow, and avoid paperwork mistakes. It also reduces risks if you choose to sell my house on your own.

Many homeowners who once wondered how to sell a house later confirm that having professionals on their side significantly improves the outcome.

Common mistakes when selling a house in New Jersey

Even experienced sellers can make mistakes that delay a sale or reduce profits. Knowing them ahead of time is key to a successful home sale in New Jersey.

Failing to meet disclosure requirements

Not disclosing material defects or flood risks can lead to lawsuits or canceled deals. The law requires transparency under the Flood Risk Notification Law. Sellers don’t have to investigate unknown conditions, but must disclose all information they know in good faith.

Overpricing the property

Pricing outside the market range can prolong time on market and reduce the final sale price. In counties like Essex or Bergen, a 10% overprice can add more than three months to a listing.

Ignoring municipal rules

Closing without a valid certificate of occupancy or permits for renovations can block recording. Requirements vary by town and may include extra inspections.

Poor home preparation before showings

Homes with visible defects, odors, or clutter lose appeal immediately. Clean presentation, good lighting, and small cosmetic fixes increase perceived value.

Selling without professional help

For Sale By Owner (FSBO) is possible, but in New Jersey it often means lower net and higher legal risk. 

According to the National Association of Realtors (NAR), only about 6% of sales are FSBO and they tend to close for 20%–26% below the median.

Estimated timelines to sell a house in New Jersey

The average time to sell a house in New Jersey depends on location, property condition, price, and local demand. 

Homes for sale in New Jersey in counties like Bergen or Hudson typically spend 45–70 days on market, depending on segment and season.

Typical duration after signing a contract

From contract to closing, most residential deals finish within 30–60 days, provided there are no financing, inspection, or title issues. This is similar to other active markets.

County comparisons

• In Hudson County, average time on market is around 50 days.
• In Bergen County, it’s roughly 70 days.
• In rural or lower-demand areas, it can exceed 80 days if initial pricing is high.

Factors that speed up the sale

• Market-aligned pricing based on a professional CMA.
• Homes in good condition, clean, and staged.
• Solid digital marketing and presence on specialized portals.

Factors that delay the sale

• Overpricing the property.
• Unrepaired defects discovered during inspection.
• Title issues or incomplete documentation.

Anyone who wants to sell their house faster can improve timelines by applying marketing strategies, selective repairs, and proper legal guidance, ensuring a smooth start-to-finish process.

FAQs when selling a house in New Jersey

Is hiring a lawyer mandatory to sell a house in NJ?

No, state law doesn’t require it. However, it’s highly recommended. An attorney reviews the purchase agreement, disclosures, and closing package, protecting the seller against disputes or breaches.

What if I’m a nonresident?

Nonresidents must file GIT/REP-1 or GIT/REP-2 and pay the Exit Tax at closing. 

This functions as an income tax prepayment that’s reconciled in your annual return.

Can I sell an inherited home in NJ?

Yes, but probate should be completed and you should obtain a clean marketable title. Afterwards, the sale follows the same rules, though you may face extra taxes if there’s a capital gain.

What does “as is” mean when selling a house in New Jersey?

It means selling the property in its current condition without making repairs. However, the seller still must disclose any material defect or risk affecting habitability or value. 

Learn more in: ” What can seller concessions be used for?“

Can I sell a home with an active mortgage?

Yes. At closing, part of the buyer’s funds are used to pay off the outstanding mortgage balance. The seller receives only the net difference. If you’re facing default, you may need guidance on foreclosure defense in NJ.

These questions are common among those who want to sell a house in New Jersey or are planning a property sale soon.

Choose to sell a house in NJ with legal confidence

A successful home sale in New Jersey is more than finding a buyer: it requires meeting disclosure rules, filing tax forms, and coordinating a closing that can take 30 to 60 days.

With the right guidance, you can reduce legal risks, optimize taxes, and close on the best terms. If you’re considering selling your property or reinvesting in the best places to buy a home in New Jersey, doing so with legal support is your smartest move.

At Curbelo Law, our NJ real estate attorney has over 10 years of experience helping homeowners sell quickly, profitably, and safely.

Planning to sell your house in NJ?
Contact us today for tailored legal advice and a secure transaction from start to finish.