July 24, 2024
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Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

NJ and NY Real Estate Transactions and How They Differ

As a licensed real estate agent in both New Jersey and New York, I have had numerous clients who have sold homes in one state and then purchased in the other. This creates many questions since it is often confusing that the process is very different in both states.

Question:

Is the process for selling and buying real estate in New Jersey and New York the same?

Answer:

No, it has different timelines for the transaction.

Question:

Can I hire an attorney licensed in New York to handle my New Jersey transaction?

Answer:

The attorney who handles the transaction should be a New Jersey licensed attorney who is familiar with the NJ process since each state adheres to different regulations and timelines.

Question:

Seems so confusing, but when are inspections supposed to be done? When selling my home in New York, the inspection was done before the signing of the contracts, but now I’m being told that contracts should first be signed before the home inspection is done. Please clarify the confusion.

Answer:

You are correct, different states have different timelines. In New York, in fact, home inspections are done before contract signing, whereas in New Jersey, the attorneys inform their clients to order a home inspection after the contracts are signed. Of course, there is no law against doing a home inspection and a buyer can choose to do an inspection during the three-day attorney review period before contracts are signed if that’s their preference and their respective attorney advises the same. Typically, though, attorneys advise the buyers to wait until contracts are signed and in place before investing further time and money for an inspection in the State of NJ.

Question:

Having sold my home in New York, what does this three-day attorney review mean once I’m putting in my offer in New Jersey?

Answer:

There is no three-day attorney review in New York State, yet in New Jersey the transaction is structured whereby during the three days the attorneys parlay, prepare addendums and a final agreement to be signed by both parties—buyers and sellers.

Question:

What if we’re in the middle of a holiday—is the three-day attorney review always exactly three days?

Answer:

Three days on the contract is the norm; however, the attorneys can discuss and implement an extension of the three days based on needs and necessity with agreements and signing off by all parties. And, holidays and weekends are excluded from the three-day period.

Question:

I’ve always paid mortgage tax when taking out a mortgage based on the amount of the mortgage. I noticed there is no mortgage tax in New Jersey. Please verify.

Answer:

Isn’t it wonderful? No mortgage tax in New Jersey. Let’s consider ourselves fortunate on that one!

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Ruby Kaplan is a licensed REALTOR in New Jersey and New York, focusing on Bergen and Rockland Counties. Her priority is working with her clients to meet their housing needs and goals.

She can be reached in the V&N office—1401 Palisades Avenue, Teaneck, NJ—at (201) 692-3700 or on her cell at (917) 576-4177.

By Ruby Kaplan

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