The firs step in purchasing a home in New Jersey is to zero in on an agent or Realtor. The agent under the laws of New Jersey owes fiduciary duties to the seller. However, the Realtor can represent sellers, buyers or both. A Realtor with a substantial database of houses for sale will give the purchaser better home-buying options.

The next step is to zero in on the ideal property with the help of the agent. When the purchaser chooses the suitable property, a contract of sale is prepared. The contract of sale consists of the price and other terms on which the purchaser is willing to purchase the property. The laws of the State of new Jersey require that the contract of sale is to be in writing and accompanied by a check amounting to 1% of the offered price. The contract has to detail the various inspections to be carried out such as structural stability, pest control, radiation, attorney approval of the contract and mortgage commitment.

Once this initial contract is drawn up, the purchaser can apply for a loan on a mortgage. Several banks, financial services and mortgage companies offer loans on varying terms in proportion to the purchaser's payment capability. The contract of sale for the purchase of a home in New Jersey should contain the terms and the rate of interest that the purchaser is planning to pay. Once the application is made to the mortgagor, a mortgage commitment should be obtained within 30 to 45 days of the contract of sale. After the commitment is obtained the purchaser is required to deposit 10% of the price offered as earnest money which the seller will deposit in a bank account as escrow.

The most important part of any real estate purchase is a title search. The purchaser's attorney, title search companies or a trust and title company are entrusted with the task of searching public records, bankruptcy court records and family court records for possible encumbrances on the title. Most title search companies are members of the New Jersey Land Title Association. After the title search has been completed it is wise to take out a title insurance to prevent possible legal actions based on discrepancies in title. If the contract is drawn up by a real estate agent, it is mandatory that a three day review period is granted to the purchaser. The State of new Jersey recognizes an implied easement which is given to anyone who has no other reasonable or practical way of egress and ingress except through the property of another.

The purchaser also requires a homeowners insurance for the amount of the mortgage which is required at the closure of the purchase. Before the closing of the contract the attorney will apportion the rates and levies to be paid by the purchaser and the seller. The purchaser should make arrangements to establish new accounts for taxes and other payments in the purchaser's name. On the completion of these procedures, the purchaser will be required to execute the contract by showing the home owners insurance and obtain immediate possession.