Purchasing Differences in PA and NJ: Overview
The Delaware River is the only thing that separates New Jersey and Pennsylvania; however, they are worlds apart when you are talking about the nuances of the real estate transaction. Each state has their own protocol, and as such, you need to make sure that if you are considering a purchase in both NJ and PA you have a Realtor who is adept at the laws and customs of each state. The following is a brief outline of the differences and subsequent posts will give more comprehensive detail of each item.
| Pennsylvania | New Jersey | |
| Offer |
Full Contract is Submitted |
Full Contract is Submitted (6-9 Pages) OR a 1 Page Offer to Purchase is submitted |
| Contract |
When signed by all parties it is a fully executed contract. |
When signed by all parties the contract is NOT binding.
|
| Attorneys |
Typically not involved. Southern NJ tends to follow PA's practices.
|
In Central NJ and North; attorneys are typically involved.
|
|
Inspection |
Assumming no attorneys are involved; the Realtors handle the inspection negotiations.
|
The attorneys handle the inspection negotiations.
|
| Buyer Closing Costs |
There is a 2% realty transfer tax in PA. This is customarily split between the buyer and seller. This is paid at closing.
|
There is not a buyer transfer tax in NJ under $1 Million. When the contract price is $1M or higher, there is a 1% fee that the buyer pays at closing.
|
| Tax Reimbursements at Closing |
Taxes in PA are paid on an annual basis. Therefore, depending on when closing is, the buyer may have to pay a full year of taxes at closing.
|
Taxes in NJ are paid on a quarterly basis, as such there are usually less taxes due at closing.
|
| Heating Fuel |
Unused heating fuel transfers to the buyer at closing unless otherwise specified. |
The seller is typically reimbursed for unused heating fuel at closing.
|
| Closing | A title company typically conducts the closing. | Closings are typically conducted by an attorney. |
