By Justin Liva, Mojo House BuyersMost people who come to me want the sale done sooner, and that's a fair thing to care about. The honest picture is that the buyer is only one part of it. A New Jersey closing depends on a chain of people and paperwork, and the slowest link sets the pace.
So instead of quoting a number of days, let me walk through what actually controls the calendar. Once you know which pieces apply to your house, you can make a realistic plan.
The buyer's money
A buyer with a mortgage depends on a lender. New Jersey's Department of Banking and Insurance says in its home buying guide that mortgage processing can take from 30 to 90 days for a buyer who hasn't been pre-approved. The federal rules add a built-in wait at the end. As the CFPB puts it, the lender has to give the borrower a Closing Disclosure at least three business days before closing on the loan.
A cash buyer has no loan to process and no lender's appraisal to wait on, so that whole piece drops out of the schedule.
Getting to a binding contract
In an agent-prepared sale of a one- to four-family home, New Jersey contracts include a three-business-day attorney review period. Weekends and legal holidays don't count, and either side's attorney can cancel during that window. If a lawyer raises concerns, the back-and-forth can stretch things further, and the parties can agree in writing to extend the review.
It's a short step, and if no attorney sends a disapproval within the window, the contract becomes binding. I explain it fully in my guide to the sale process and attorney review.
Title and liens
That same state guide says most purchase agreements are conditioned on a title search that checks for liens and judgments, including whether the seller is in a bankruptcy. Problems it can turn up include:
- Judgments or liens against the property
- A bankruptcy involving the seller
- Someone else's claim against the property, which means title isn't clear
- An owner who has died, with no executor or administrator appointed yet
The guide also notes that a real estate attorney can evaluate the title and advise on it. Whatever the fix is, it takes as long as it takes.
Your mortgage payoff
If you still owe on the house, the loan gets paid off at closing. Under federal Regulation Z, your servicer generally has to send a payoff statement within seven business days of a written request. If you're behind on payments or have more than one loan, there may be extra steps. Your attorney can tell you early whether any of that applies to you.
Certificates from the town
Before a one- or two-family home is sold, New Jersey requires the owner to get a certificate showing the smoke alarms, carbon monoxide alarms and portable fire extinguisher meet the state fire code. The rule, at N.J.A.C. 5:70-2.3, has two timing details worth knowing:
- The application fee is set by how far ahead of the change of occupant you apply, and it goes up as the date gets closer.
- The certificate isn't transferable, and if the change of occupancy doesn't happen within six months, you have to apply again.
Some towns also run their own resale inspection under a local property maintenance code, and how long that takes is up to the town. Call your municipality's code or building office early to find out what they require. My certificate guide has the details.
Estates, co-owners and out-of-state sellers
Some sales have an extra layer of authority to sort out before anyone can sign:
- Inherited houses. If the owner has died, someone needs legal authority to sell. In New Jersey the county Surrogate's Court validates wills and appoints administrators when there's no will. My probate sale guide explains the steps.
- Multiple owners. The Division of Taxation's guide to buying or selling a home says each owner submits a GIT/REP form at closing, with a married couple counted as one owner. See my guide to selling with co-owners.
- Nonresident sellers. If you live out of state and need a waiver of New Jersey's estimated income tax payment, the Division of Taxation's TB-57(R) recommends sending the request at least 14 days before closing.
The house itself
In a traditional sale, the state's home buying guide recommends that the buyer get an independent home inspection soon after the contract becomes binding. If it turns up defects, the contract sets how long the buyer has to send the report and how long you have to decide whether to fix them.
When I buy, the house is sold as-is. I buy houses in any condition, including fire-damaged and unlivable ones, so there's no repair list to negotiate. Leave behind whatever you don't want; I handle the cleanout once the sale closes.
Faster isn't always the goal
Speed gets a lot of attention, but the right closing date is the one that fits your life. You might need to close quickly to stop paying for an empty house. Or you might need more time to find your next place, sort through a parent's belongings or wait for a school year to end.
That's why I close on the seller's timeline, with no pressure in either direction. If you need it done soon, we work toward that. If you need a few months, we set the date further out.
I'll also say what I tell everyone. If time isn't the issue and your house is in good shape, listing with an agent and waiting a few months will usually get you more money. A quick sale makes the most sense when the house needs work, the situation is complicated, or you'd rather skip the showings and repairs.
If you'd like to see what a sale on your schedule could look like, here's how I buy houses, step by step.