New Jersey real estate questions, answered

New Jersey real estate contracts prepared by REALTORS® include a three-business-day attorney review period, which starts after both buyer and seller receive a copy of the signed contract. During those three days, either side's attorney can propose changes or cancel the contract for any reason with a notice of disapproval. If neither side acts, the contract becomes binding as written.

Source: Riley & Gutman: Attorney review in New Jersey

New Jersey charges a Realty Transfer Fee when a deed is recorded, calculated from the sale price using schedules published by the NJ Division of Taxation. It is customarily paid by the seller. Partial exemptions are available for senior citizens, blind or disabled sellers, low- and moderate-income housing, and new construction.

Source: NJ Division of Taxation: Realty Transfer Fee

It's an additional tax on residential sales over $1 million. Since July 10, 2025 (P.L. 2025, c.69), it is graduated and the seller pays it by default: 1% over $1M up to $2M, 2% up to $2.5M, 2.5% up to $3M, 3% up to $3.5M, and 3.5% above $3.5M, applied to the entire price. Before the change, it was a flat 1% paid by the buyer. Buyer and seller can still agree otherwise in the contract.

Source: Sills Cummis & Gross: NJ Mansion Tax Amendment (2025)

Yes. Before a one- or two-family home is sold or leased in New Jersey, the owner must obtain a certificate of smoke alarm, carbon monoxide alarm and portable fire extinguisher compliance from the local enforcing agency, usually the fire department. It is issued after an inspection, is not transferable, and must be renewed if the closing doesn't happen within six months. Some towns handle this through their own certificate of occupancy inspection instead.

Source: N.J.A.C. 5:70-2.3: Certificate of smoke alarm, CO alarm and fire extinguisher compliance

Since March 20, 2024, sellers use an updated Seller's Disclosure Statement under P.L. 2023, c.93. It asks whether the property is in FEMA's Special Flood Hazard Area or Moderate Risk Flood Hazard Area, whether flood insurance is required or in place, whether FEMA or other federal flood assistance was received, whether flood claims were filed, whether an elevation certificate is available, and whether the property has had flood damage, water seepage or pooled water.

Source: Day Pitney: New flood disclosure requirements for NJ sellers (2024) NJ Division of Consumer Affairs: Seller's Disclosure Statement

In New Jersey, tidelands are all lands currently and formerly flowed by the mean high tide of a natural waterway, and they belong to the State (N.J.S.A. 12:3-10 and 13:1B-13). That includes land that was filled in long ago, even if the original waterway is no longer visible.

Source: NJDEP Tidelands lease guidance (TD-027)

According to NJDEP's Bureau of Tidelands, a riparian grant is a deed from the State selling its formerly flowed tidelands. A tidelands lease is a long-term rental for currently flowed tidelands, used for things like homes built over the water. A tidelands license is a short-term rental, typically for docks, piers, mooring piles and similar structures.

Source: NJDEP Bureau of Tidelands: grants, leases, licenses and claims

When part of a property sits on filled former tidelands, the State still owns that portion. NJDEP calls this a tidelands claim and describes it as a cloud on the owner's title, whether or not the owner knew about it. A riparian grant is the main way to clear it. NJDEP also notes that structures on state-owned tidelands without a lease or license are not grandfathered, and that a lease typically takes about a year to obtain. If this may apply to you, raise it early with your title company and attorney.

Source: NJDEP Bureau of Tidelands: grants, leases, licenses and claims NJDEP Tidelands lease guidance (TD-027)

It depends on the town. Short-term rentals are regulated locally, and Jersey Shore municipalities set their own rules, which can include permits, registration, minimum stays or restrictions. At the state level, New Jersey applies sales tax to rentals booked through platforms like Airbnb and to professionally managed units, and towns may add occupancy taxes. Check the current ordinance in the specific town before you buy with rental income in mind.

Source: Scarinci Hollenbeck: Short-term rentals in New Jersey