State guide

Buying or Selling a Home in New Jersey: What You Need to Know

New Jersey has one of the most distinctive home-buying processes in the country, anchored by a three-business-day attorney review period that lets either side cancel a signed contract without penalty.

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TL;DR

New Jersey has one of the most distinctive home-buying processes in the country, anchored by a three-business-day attorney review period that lets either side cancel a signed contract without penalty. Sellers face strict disclosure rules about floods, off-site hazards, and known property defects, and New Jersey's anti-discrimination law protects more groups than federal law, including source of income and sexual orientation. After the 2024 settlement, buyers must sign a written agreement with their agent before touring homes, and the agreement has to spell out exactly what that agent will be paid.

10 things every New Jersey buyer or seller should know

  • Every standard New Jersey residential real estate contract includes an attorney review clause that gives either the buyer or the seller three business days, starting after both sides receive a fully signed contract, to have a lawyer cancel or change the deal without penalty.

  • Before a New Jersey agent has any substantive conversation with you about properties, prices, or financing, they must give you a Consumer Information Statement (CIS) explaining the four kinds of representation: seller's agent, buyer's agent, disclosed dual agent, or transaction broker.

  • Under New Jersey's 2024 Flood Disclosure Law, sellers of residential property must give buyers a written statement that says whether the home is in a FEMA flood zone, whether it has flooded before, the number and dollar amount of past flood insurance claims, and whether flood insurance is in place.

  • After the August 17, 2024 NAR settlement, any New Jersey agent who is an MLS participant must have a signed written buyer agency agreement with you before touring any property, and the agreement must state the agent's exact compensation as a dollar amount, percentage, or other specific formula.

  • On any New Jersey home sale of $1,000,000 or more, the buyer owes a 1% Mansion Tax on the entire sale price (not just the amount above $1 million), so a $1.2 million purchase carries a $12,000 Mansion Tax bill due at closing.

  • New Jersey sellers pay a tiered Realty Transfer Fee (RTF) at closing that scales with the sale price, and nonresident sellers also face a separate state income-tax withholding of either 2% of the price or 8.97% of the estimated gain (the GIT/REP withholding), whichever is greater.

  • Under the New Jersey Supreme Court case Strawn v. Canuso, sellers and their listing agents have a common-law duty to disclose known off-site conditions, such as a nearby hazardous waste site, that a reasonable buyer would consider important even though the condition is not on the property itself.

  • The New Jersey Law Against Discrimination protects more groups than federal fair housing law, adding ancestry, marital and civil-union status, sexual orientation, gender identity, military service, and source of lawful income (such as Section 8 housing vouchers) to the list of classes that cannot be used against a buyer or renter.

  • Every residential sales contract in New Jersey must include a notice telling buyers that information about registered sex offenders is available through the New Jersey State Police and local law enforcement under Megan's Law; the agent does not have to research the registry for you, but the contract must point you to it.

  • When you buy a brand-new home or a unit in a newly built condo or planned development in New Jersey, the developer must give you a public offering statement (POS) registered with the Department of Community Affairs, and you have a seven-day right to cancel after receiving it under the Planned Real Estate Development Full Disclosure Act (PREDFDA).

The guides

Common questions

What is the New Jersey attorney review period, and do I need a lawyer?
Once both the buyer and seller sign a standard New Jersey real estate contract, either side has three business days to have a lawyer review it and either cancel or propose changes, with no penalty for walking away. The clock starts the day after the last party receives the fully signed contract, and the contract is not legally binding until that window closes. Most New Jersey buyers and sellers do hire a real estate attorney during this period, because it is the one chance to renegotiate or back out cleanly.
Do I have to sign an agreement with a buyer's agent in New Jersey before they show me homes?
Yes. Since August 17, 2024, any agent who participates in the MLS must have a signed written buyer agency agreement with you before showing you any home, in person or virtually. The agreement must identify you as the buyer, set a term, describe the services, and state the agent's exact compensation as a dollar amount, percentage, or formula. Vague language like 'whatever the seller offers' is not allowed, and you can negotiate the length and pay before signing.
Who pays the Mansion Tax and Realty Transfer Fee in a New Jersey home sale?
The Mansion Tax is a 1% tax on the entire sale price for any New Jersey residential property selling at $1,000,000 or more, and it is paid by the buyer at closing. The Realty Transfer Fee (RTF) is a separate, tiered state and county tax paid by the seller, and it scales with the sale price. So on a $1.2 million home, the buyer typically owes $12,000 in Mansion Tax while the seller separately owes the RTF, plus their own income tax withholding if they are a nonresident.
What flood information will I get when buying a New Jersey home?
Under New Jersey's 2024 Flood Disclosure Law, the seller must give you a written flood statement before contract that covers whether the home is in a FEMA flood zone, whether it has flooded in the past, how many flood insurance claims have been paid and for how much, whether flood insurance is currently in force, and whether the property has any flood mitigation measures. You should still look up the property yourself on the FEMA Flood Map Service Center, because the federal map controls whether your lender will require flood insurance.
Will I owe New Jersey taxes when I sell my home if I live out of state?
If you are a nonresident of New Jersey, the buyer or your closing agent must withhold state income tax from your proceeds, called the GIT/REP withholding. The withheld amount is the greater of 2% of the total sale price or 8.97% of the estimated gain on the sale. You can elect the simpler 2% flat rate or file a GIT/REP-3 form to base withholding on your actual estimated gain, and any over-withholding is refunded when you file your nonresident New Jersey return.
What is the Consumer Information Statement, and when does my agent have to give it to me?
The Consumer Information Statement (CIS) is a one-page form that explains the four legal ways a New Jersey real estate licensee can work with you: as a seller's agent, a buyer's agent, a disclosed dual agent, or a transaction broker. By rule, the licensee must give it to you at the 'first substantive contact,' meaning the first in-person meeting or call where you discuss specific properties, prices, or financial qualifications. You should read it and pick the relationship that best fits before going further.
Can a New Jersey seller or landlord turn me down because I use a Section 8 housing voucher?
No. The New Jersey Law Against Discrimination treats source of lawful income as a protected class, and that protection specifically covers Section 8 vouchers and other rental subsidies. A seller, landlord, or their agent cannot refuse to deal with you, or use a 'three times the rent' income rule, in a way that screens out voucher holders. They also cannot discriminate based on sexual orientation, gender identity, marital or civil-union status, or any of the other categories that New Jersey adds on top of federal fair housing law.
What disclosures should I expect as a buyer of a New Jersey home?
Expect a Consumer Information Statement about your agent's role, a written flood disclosure under the 2024 law, a Megan's Law notice pointing you to the sex offender registry, and a federal lead-based paint disclosure if the home was built before 1978. If the property is in the coastal zone, ask whether it falls under the Coastal Area Facility Review Act (CAFRA), which can affect future construction and additions. New construction and condo or planned-development units come with extra paperwork, including a public offering statement and a seven-day cancellation right.
Does my New Jersey agent have to tell me about problems near the property, not just on it?
Yes, in many cases. Under the New Jersey Supreme Court case Strawn v. Canuso, sellers and their listing brokers have a duty to disclose known off-site conditions, like a nearby hazardous waste site, that would matter to a reasonable buyer and that you could not easily discover on your own. For brand-new homes, the New Residential Construction Off-Site Conditions Disclosure Act requires builders to provide a written list of known off-site conditions within one mile of the property before you sign the contract.
How do I check that my New Jersey real estate agent is properly licensed?
Every active real estate professional in New Jersey is licensed by the New Jersey Real Estate Commission (NJREC), which sits inside the Department of Banking and Insurance. There are four license types: salesperson, broker-salesperson, broker, and referral agent, and each has different authority and education requirements. You can verify any agent's license status and any past discipline on the NJREC's public site, and advertising rules require the brokerage name to appear on signs, websites, and listings, so a 'blind ad' with only an agent's personal name is a red flag.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.