Key Takeaways
- New Jersey closings are typically conducted by attorneys who handle title examination and closing
- The closing disclosure must be provided at least 3 business days before closing per federal TRID rules
- New Jersey uses warranty deeds, bargain and sale deeds, and quitclaim deeds for property transfers
- Property taxes in New Jersey are collected quarterly with prorations calculated at closing
- Recording fees are paid to the county clerk to record deeds and mortgages
Last updated: January 2026
New Jersey Closing Procedures
New Jersey has specific requirements for real estate closings that differ from some other states.
Who Conducts Closings
In New Jersey, closings are typically conducted by attorneys:
| Role | Responsibility |
|---|---|
| Closing Attorney | Title examination, document preparation |
| Title Company | May provide title insurance |
| Real Estate Agent | Coordination, not document preparation |
| Lender | Provides loan documents and funds |
Attorney Involvement
New Jersey is an "attorney state" for closings:
- Title examination performed by attorney or title company
- Closing documents typically prepared by attorneys
- Attorney conducts the closing
- Funds disbursed through attorney escrow
Pre-Closing Requirements
Federal TRID Rules
| Document | Timing |
|---|---|
| Loan Estimate | Within 3 business days of application |
| Closing Disclosure | At least 3 business days before closing |
| Changes requiring new wait | APR increase >0.125%, loan product change, prepay penalty |
Title Examination
The closing attorney or title company:
- Searches public records
- Examines chain of title
- Identifies liens and encumbrances
- Issues title commitment
Survey
| When Required | Purpose |
|---|---|
| Lender requirement | Verify boundaries |
| Buyer request | Identify encroachments |
| Title insurance | May be required |
Types of Deeds in New Jersey
Full Covenant and Warranty Deed (General Warranty)
Provides the greatest protection:
- Warrants title against all defects
- Guarantees right to convey
- Covenants of quiet enjoyment
- Most common in residential sales
Bargain and Sale Deed (With Covenants)
Provides moderate protection:
- Implies grantor has title
- May include limited warranties
- Common in New Jersey transactions
Bargain and Sale Deed (Without Covenants)
Limited protection:
- Implies grantor has title
- No warranties
- Often used in tax sales, foreclosures
Quitclaim Deed
Provides no warranty:
- Transfers only interest grantor has (if any)
- No promises about title quality
- Used to clear title issues, family transfers
Prorations at Closing
Property Taxes (Quarterly Collection)
New Jersey property taxes are collected quarterly:
| Quarter | Due Date |
|---|---|
| Q1 | February 1 |
| Q2 | May 1 |
| Q3 | August 1 |
| Q4 | November 1 |
Tax Proration Methods
| Method | Calculation |
|---|---|
| Per diem | Annual tax ÷ 365 × days |
| Calendar year basis | Standard approach |
| Seller responsibility | Through day before closing |
| Buyer responsibility | Closing day forward |
Other Prorations
| Item | Direction |
|---|---|
| HOA/Condo fees | Per payment schedule |
| Rent (if applicable) | Buyer credited for prepaid rent |
| Oil in tank | Buyer pays for remaining oil |
| Water/sewer | Per usage or quarterly |
Recording Requirements
Where to Record
Deeds are recorded with the County Clerk in the county where the property is located.
Recording Fees
| Fee Type | Purpose |
|---|---|
| Recording fee | Per page/document |
| Realty transfer fee | State tax on sale |
| Mansion tax | Additional fee over $1 million |
Loading diagram...
Test Your Knowledge
How are property taxes typically collected in New Jersey?
A
B
C
D
Test Your Knowledge
Where are real estate deeds recorded in New Jersey?
A
B
C
D
Test Your Knowledge
Which type of deed provides the greatest protection to the buyer in New Jersey?
A
B
C
D