In New Jersey, real estate transactions heavily involve attorney-driven closings, where attorneys often handle escrow duties, acting as neutral third parties to hold funds and documents. Title companies conduct searches for liens or defects and issue insurance to protect owners and lenders. Escrow ensures that all conditions of the contract are met, including repairs and tax prorations.

Contact Keller Williams Realty if you have any questions about these processes.

New Jersey Title Information

• Title Search & Insurance: A search identifies liens, encumbrances, or ownership disputes. While not legally mandatory, title insurance is used in 99% of NJ closings to protect against undiscovered issues.
• Common Title Issues: These include, but are not limited to, unrecorded easements, outstanding mortgages, or hidden liens.
• Costs: The buyer typically pays for the title search and insurance.
  

New Jersey Escrow Information

• Role of Attorneys: NJ is an "attorney state," meaning licensed attorneys frequently manage the escrow process, rather than just independent escrow companies.
• Escrow Functions: The escrow agent (often the buyer's attorney) holds the initial earnest money deposit, manages funds, and ensures all contractual obligations (e.g., inspections) are met before closing.
• Closing Process: The escrow agent coordinates the final disbursement of funds and records the deed. 
  

Typical Closing Costs Breakdown

• Buyer Costs: Title insurance, attorney fees, and mortgage-related fees (2% to 5% of the purchase price).
• Seller Costs: Broker commissions, transfer taxes, and deed preparation (8% to 10% of the sale price). 

Key documents, including the title search and survey, are reviewed by the attorney to ensure a clear transfer of ownership.