What Happens After Your Offer Is Accepted in New Jersey

By David Tibbetts | May 21, 2026

The moment a seller signs your offer, things move fast. And in New Jersey, the process has a few twists that buyers from out of state (or first-timers anywhere) rarely see coming.

This isn’t a generic guide. It’s what actually happens, in order, when you’re buying a home in Middlesex County, Somerset County, or anywhere across central NJ in the current market.

Here’s what to expect.

Step One: The Attorney Review Period (Days 1 to 3)

New Jersey is one of the few states that mandates an attorney review period after a contract is signed. The clock starts the first business day after both parties have signed copies in hand, and it runs for three business days. Weekends and New Jersey state holidays do not count.

During those three days, your attorney and the seller’s attorney review the contract. Either attorney can:

• Approve it as written. You move forward with the original terms.
• Disapprove it entirely. Either party can walk away, no penalty, deposit returned in full.
• Send a modification letter requesting changes to specific terms, price adjustments, or added contingencies.

Most transactions don’t die in attorney review. If your attorney sends modifications and the other side responds, you’re technically still in an open attorney review until both attorneys confirm approval.

One thing buyers often don’t realize: until attorney review officially closes, neither party is fully bound. That means the seller could still accept a better offer during this window if they choose to disapprove your contract. In a tight inventory market like Middlesex or Somerset County right now, that’s worth knowing and understanding.

Your earnest money deposit (typically 1% to 3% of the purchase price in New Jersey) is generally due within a few days of attorney review closing. On a $625,000 home in Edison or East Brunswick, that’s $6,250 to $18,750 in escrow.

Step Two: Inspections and Due Diligence

Once attorney review closes, the inspection clock starts. Most contracts give buyers 10 to 14 days for inspections, though your attorney may have negotiated a different window.

In central NJ, a thorough inspection package typically includes:

• General home inspection (covers structure, roof, electrical, plumbing, HVAC)
• Radon testing (New Jersey has elevated radon levels in many areas, particularly in Somerset and Hunterdon counties)
• Termite/wood-destroying insect (WDI) inspection (required by most lenders)
• Well and septic testing if the property has either (common in Hillsborough, Flemington, and rural Hunterdon County)
• Oil tank sweep if the home was built before 1990

Inspections on a $550,000 home typically run $600 to $1,200 total depending on what’s ordered. That cost is on the buyer.

After you get the reports back, your attorney can submit a repair request letter to the seller’s attorney. The seller can agree to make repairs, offer a credit at closing, or decline. If you can’t reach agreement, you have the option to walk away under the inspection contingency (assuming your contract includes one).

If you’re buying in the $400K to $900K range in Piscataway, South Brunswick, or Somerset, expect inspection negotiations to focus on deferred maintenance, plumbing/electrical issues, water penetration concerns (basement or roof), and HVAC condition. Those are the most common friction points I see.

Understanding where the real risks are comes from actually reading those inspection reports with someone who knows what to look for, not just skimming the summary page. This is exactly the kind of thing I walk my clients through before they decide what to request.

Step Three: Mortgage, Appraisal, and the Loan Commitment

While inspections are happening, your lender is at work as well. After attorney review closes, you’ll typically submit your full mortgage application package (if you haven’t already), and your lender will order the appraisal.

The appraisal is ordered by your lender to confirm the home’s market value supports the loan amount. The appraiser is an independent third party, not chosen by you or the seller. If you’re buying a $700,000 home and the appraisal comes in at $675,000, you have a gap problem.

Your options when the appraisal comes in low:

1. Negotiate a price reduction with the seller
2. Pay the difference in cash (cover the gap yourself)
3. Challenge the appraisal with comparable sales data
4. Walk away using your appraisal contingency

That appraisal contingency is important. If you’ve waived it (common in competitive offer situations in central NJ right now), you’re on the hook to cover any gap out of pocket. Be sure you understand what you agreed to before waiving it.

If you’re unsure what your home’s market value actually is before going under contract, online estimates are often unreliable in this market. A proper comparative market analysis gives you a much more accurate picture before you make an offer.

Your lender will also issue a loan commitment letter (typically within 30 days of the signed contract), which is a conditional approval. “Conditional” means you still need to satisfy any outstanding items, like a clear title or updated pay stubs. Your loan commitment is not the final clear to close.

Step Four: Title, CCO, Smoke/CO Compliance, and Closing Day

In the final 2 to 3 weeks before closing, several things happen simultaneously.

Title search: A title company searches the property’s history to confirm there are no outstanding liens, judgments, or ownership disputes. Title insurance is issued to protect both you and your lender.

Certificate of Continued Occupancy (CCO): Some New Jersey municipalities require a CCO inspection before the sale can close. The town sends an inspector to verify the home meets current code requirements. If the inspector finds violations, the seller is responsible for correcting them before closing. This can sometimes add time to your closing timeline.

Smoke and CO detector compliance: NJ law requires sellers to certify that all smoke detectors and carbon monoxide detectors comply with current code before closing. In some municipalities, a fire extinguisher is also required in the kitchen. This is a seller obligation, but your agent will track it.

Final walkthrough: Typically done within 24 hours of closing, this is your chance to confirm the property’s condition matches what you agreed to, any negotiated repairs were completed, and nothing has changed for the worse since your inspections. The property should be empty and left in “broom swept condition.”

Closing day: In New Jersey, closings typically happen at a real estate attorney’s office or at your title company. You’ll sign a stack of documents, wire your closing funds in advance or bring a bank certified check, and receive the keys once the deed is recorded.

Total closing costs for buyers in NJ typically run 2% to 4% of the purchase price. On a $625,000 home, that’s $12,500 to $25,000 in addition to your down payment, covering lender fees, title insurance, attorney fees, prepaid property taxes, and homeowner’s insurance escrow. Also, depending on the Buyer Agency Agreement and/or terms of the contract, that may include commission that is due your agent.

The New Jersey contract-to-closing process has more steps, more state-specific requirements, and more moving parts than buyers from other states often expect. Attorney review alone sets NJ apart from most of the country.