Updated October 2026. New Jersey Division of Taxation pages, Mercer County Clerk notice and New Jersey statutes and rules checked on October 31, 2026.
A New Jersey FSBO contract of sale should be written, signed by every owner, and set the price, deposit, closing date and who pays which fees. As of October 2026, give the buyer your disclosure before they’re bound, plan for the seller’s realty transfer fee, and note that the 3-day attorney review only applies if a licensee drafted the contract.
Beycome doesn’t list homes in New Jersey yet. This page explains how a by-owner contract works under New Jersey rules. Want to hear when we open in the state? Get notified.
Jump to: 🖊️ Binding · ⚖️ Attorney review · ✅ Clauses · 💲 Who pays · 🧳 Nonresident sellers · 🏘️ Rentals · ❓ FAQ
Key takeaways
- A written, signed contract is the safe path. New Jersey courts enforce an oral land deal only on clear and convincing proof.
- If you and the buyer draft the contract with an attorney and no licensee, there’s no built-in 3-day review, so add your own review clause if you want one.
- Since July 10, 2025, the seller owes the mansion tax too, at 1% to 3.5% of a price over $1 million.
- Selling while living out of state? Plan for an estimated income tax payment of at least 2% of the price at closing.
What makes a New Jersey contract of sale binding?
Get it in writing. New Jersey’s statute of frauds, N.J.S.A. 25:1-13, lets a court enforce an unwritten deal to transfer real estate only if four things are proved by clear and convincing evidence. Those are the property, the interest being sold, the agreement itself and who the seller and buyer are. That’s a hard case to win, and you don’t want to be in it.
So treat the signed contract as the deal. Every owner on the deed should sign, and so should every buyer. If a spouse or co-owner isn’t on board, sort that out before you accept an offer, not at the closing table.
New to selling on your own here? Our New Jersey FSBO guide covers pricing, marketing and closing. This page sticks to the contract.
Does attorney review apply when you sell by owner?
Only sometimes, and that surprises people. The 3-business-day attorney review comes from N.J.A.C. 11:5-6.2. It must be printed in contracts prepared by a real estate licensee who has a commission or fee interest in the deal.
| Who drafts the contract | Built-in 3-day attorney review? | What to do |
|---|---|---|
| The buyer’s agent | Yes | Have your attorney read it inside the 3 business days |
| Your attorney or the buyer’s attorney | No | Negotiate before signing; the contract binds once signed |
| You and the buyer, from a template | No | Add a review clause with a date, or get advice first |
Why it matters for you: if a buyer with an agent makes an offer, the deal isn’t final the day you both sign. Either attorney can cancel during the window. Keep showing the house until it closes. Our guide to the New Jersey attorney review period shows how to count the days.
Which clauses belong in a New Jersey FSBO contract?
The basics look like any state’s: parties, property, price, deposit, financing, inspection and closing date. These are the New Jersey items worth writing out in full.
- Disclosure receipt. Since August 1, 2024, you must give the buyer the signed property condition disclosure before they’re bound, even with no agent. Add a line where the buyer confirms they got it. Our disclosure guide covers the form and its 8 flood questions.
- Flood paperwork. If you have a FEMA elevation certificate, the 2023 flood law says you share it. Note in the contract that you did.
- Smoke and CO certificate. State rules require one before a one- or two-family home is sold. Say who books the inspection and by when, since local fire offices set their own fees and lead times.
- Town certificates. Some cities add their own resale inspection. Trenton, for one, requires a housing inspection before it issues a certificate. Name who applies and who pays for repairs.
- Deposit holder. Name a neutral holder, such as an attorney or title company, and say when the money is released or refunded.
- Dates. Mortgage commitment, inspection and closing, each with a date. Open-ended terms are how deals stall.
For older homes, add the federal lead paint disclosure for anything built before 1978. Our for sale by owner contract guide covers the clauses that work in every state.
Who pays the transfer fee and mansion tax in a New Jersey sale?
The seller, for both, under state law. The Mercer County Clerk’s notice on the 2025 change puts the mansion tax this way, with the seller paying the full rate on the whole price:
| Sale price over | Mansion tax (seller) | On a price of | Tax |
|---|---|---|---|
| $1,000,000 | 1% | $1,200,000 | $12,000 |
| $2,000,000 | 2% | $2,200,000 | $44,000 |
| $2,500,000 | 2.5% | $2,750,000 | $68,750 |
| $3,000,000 | 3% | $3,200,000 | $96,000 |
| $3,500,000 | 3.5% | $4,000,000 | $140,000 |
That’s on top of the regular realty transfer fee, which is also the seller’s. On the typical $575,100 New Jersey home (Zillow, September 2026), the fee is $4,925.30.
Can the contract shift some of it to the buyer? Buyer and seller can agree on who covers what. The seller stays the one the state holds responsible. If a buyer asks to split a fee, write the exact dollar terms in the contract and have an attorney look at it. Our transfer fee and mansion tax guide has the full rate table.
What changes if you live outside New Jersey when you sell?
The deed won’t record without a GIT/REP form. The Division of Taxation uses it to see whether a nonresident seller owes an estimated income tax payment at closing. It goes in at closing, along with the transfer fee paperwork.
The math, per the Division: your ownership share times the gain you’d report federally, times 10.75%. But the payment can’t be less than 2% of your share of the price in the deed, even if you have no gain at all. Some sellers qualify for an exemption on the GIT/REP-3 form. If the estimate is more than you owe, the Division says you can claim the difference back, including early with Form A-3128.
Moving out of state before you sell? Put this in your net number now. On a $500,000 sale with little gain, the 2% floor is $10,000 held at closing.
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Buy a home →Do you need a bulk sale notice to sell a rental home?
Usually not for a small home owned by a person. New Jersey’s bulk sale rule makes the buyer notify the Division of Taxation before buying business assets. But the Division’s page excludes a one- or two-family home owned by an individual, estate or trust, even one used as a rental or home office.
If you own the home through a company, or sell a bigger rental building, the rule can apply. Then the buyer files Form C-9600 with a copy of the contract at least 10 business days before closing, by registered, certified or overnight mail. Build that time into your closing date. Our guide to who pays closing costs shows where these items land on the statement.
Do you need a lawyer or a realtor for a New Jersey contract?
Neither is required. It’s your choice. Many New Jersey sellers hire an attorney for the contract and closing, and that matters more in a by-owner deal, since no automatic review window protects you. An agent handles pricing, showings and offers for a fee. Selling on your own, you take on that work. Both paths are fair.
When offers start coming in, our by-owner negotiation guide helps you compare terms, not just price.
More New Jersey guides: Sell Your House by Owner in Jersey City, NJ (2026), Sell Your House by Owner in Newark, NJ: Inspection, Fees, Taxes (2026).
More New Jersey guides: Sell Your House by Owner in Trenton, NJ: Inspection and Fees (2026).
New Jersey FSBO contract questions
Can I write my own contract to sell my house in New Jersey?
Yes. Put it in writing and have every owner and buyer sign. Many sellers have an attorney draft or review it, since there’s no automatic review window when no licensee prepares it.
Is there attorney review on a for sale by owner contract in New Jersey?
Only if a real estate licensee with a fee interest prepared it, such as the buyer’s agent. Then both sides get 3 business days.
Who pays the mansion tax in New Jersey now?
The seller, since July 10, 2025. It’s 1% to 3.5% of the full price when the sale is over $1 million.
Do nonresidents pay tax when selling a house in New Jersey?
Usually an estimated payment at closing: 10.75% of the gain, but at least 2% of the price, unless an exemption on the GIT/REP-3 applies.
Does a bulk sale notice apply when I sell my house in New Jersey?
Not for a one- or two-family home owned by an individual, estate or trust, even if rented. It can apply to homes held by a company or larger buildings.
When does a New Jersey seller give the disclosure statement?
Before the buyer is bound by the contract. Since August 1, 2024, that’s required with or without an agent.
Is an oral agreement to sell a house binding in New Jersey?
Rarely. N.J.S.A. 25:1-13 requires clear and convincing proof of the key terms, so a written, signed contract is the safe way to sell.
Reviewed by Beycome Brokerage Realty LLC, a licensed real estate brokerage (not licensed in New Jersey). Licenses: beycome.com/faq/how-to/are-you-a-licensed-broker/.
Mansion tax examples apply the rate to the full price, as the Mercer County Clerk’s notice describes. Transfer fee: Division of Taxation schedule, read October 31, 2026. Home value: Zillow Home Value Index, September 2026.
This is general information, not legal or tax advice. Ask a New Jersey real estate attorney and a tax adviser about your own sale.
Sources
- N.J.S.A. 25:1-13, agreements to transfer an interest in real estate: justia.com.
- N.J.A.C. 11:5-6.2, attorney review clause: law.cornell.edu, read October 31, 2026.
- New Jersey Division of Taxation, FAQs on GIT/REP forms for the sale of real property: nj.gov, read October 31, 2026.
- New Jersey Division of Taxation, Reporting a Bulk Sale: nj.gov, read October 31, 2026.
- Mercer County Clerk, Land Records (2025 mansion tax notice): mercercounty.org, read October 31, 2026.
- New Jersey Division of Taxation, Realty Transfer Fee: nj.gov.
- P.L.2024, c.32, seller disclosure before the buyer is bound: njleg.state.nj.us.
- P.L.2023, c.93, flood risk disclosure: njleg.state.nj.us.
- N.J.A.C. 5:70-2.3, smoke and carbon monoxide alarm certificate: law.cornell.edu.
- Zillow Research, Zillow Home Value Index (September 2026): zillow.com.
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