Key Legal Aspects of Buying and Selling Property in New Jersey vs. Florida

Thinking about buying or selling property in New Jersey or Florida?

While both states offer incredible real estate opportunities, the legal processes behind each transaction differ in important ways. Whether you’re closing on a condo in Palm Beach Gardens or selling a home in Bergen County, understanding these distinctions helps you stay compliant, confident, and in control.

Here’s a clear breakdown of the key legal aspects of real estate transactions in New Jersey (NJ) vs. Florida (FL) — and what every buyer and seller should know.

1. Attorney Involvement

⚖️ New Jersey:
Attorneys play a central role in nearly every real estate transaction. In fact, it’s standard practice for both buyers and sellers to be represented by attorneys who handle contract review, title issues, and closing coordination.

NJ transactions include a three-day attorney review period after the initial contract is signed, during which either party’s attorney can request changes or cancel the agreement.

⚖️ Florida:
In Florida, attorney involvement is optional, though strongly recommended for complex deals. Many transactions are handled by title companies, which manage the title search, escrow, and closing documentation.

💡 Key Difference: In NJ, attorney oversight is required; in FL, it’s encouraged but not mandatory.

2. Title and Closing Process

🏠 New Jersey:
Closings in NJ often take place at an attorney’s office, with the legal team handling title searches, payoffs, and closing documents. The buyer’s attorney ensures all conditions are met before the title is transferred.

🏡 Florida:
In Florida, title companies frequently conduct closings and issue title insurance. Buyers typically choose the title company (though this varies by county). Closings may occur in person or virtually, and electronic closings are increasingly common.

💡 Pro Tip: Florida closings tend to move faster, but NJ’s attorney-led process offers an extra layer of legal protection.

3. Property Disclosures

📄 New Jersey:
Sellers must disclose any known material defects but are not required to complete a state-specific form. However, failure to disclose known issues can lead to legal liability.

🌴 Florida:
Florida law requires sellers to provide a written property disclosure covering structural, mechanical, and environmental conditions. This “Seller’s Property Disclosure Form” is an important legal safeguard for both parties.

💡 Key Difference: Florida has stricter disclosure requirements and uses standardized documentation.

4. Real Estate Contracts

✍️ New Jersey:
Most NJ contracts are prepared by real estate agents using standardized forms, then finalized and approved during the attorney review process. Once approved, the contract becomes binding.

🖊️ Florida:
In Florida, contracts are typically written using the “FAR/BAR” form, jointly created by the Florida Association of Realtors and the Florida Bar. These contracts are highly detailed and legally binding once signed—without an attorney review window.

💡 Key Difference: NJ offers a brief “grace period” for contract review; FL does not.

5. Closing Costs and Settlement

💰 New Jersey Sellers Pay:

• Transfer taxes

• Real estate commissions

• Attorney fees

• Title fees (in some cases)

💰 Florida Sellers Pay:

• Documentary stamp tax on the deed

• Title insurance (in many counties)

• Commissions and prorated property taxes

In both states, buyers are responsible for inspection fees, lender charges, and title insurance (if not covered by the seller).

💡 Pro Tip: Closing costs are generally lower in Florida than in New Jersey, depending on the property type and financing.

6. Timing and Possession

📅 New Jersey:
Possession typically transfers at closing, though some agreements allow sellers a brief post-closing occupancy.

☀️ Florida:
Buyers usually take possession immediately after the deed is recorded and funds are disbursed—often on the same day.

7. Taxes and Residency Considerations

For clients relocating between the two states, tax implications are crucial:

• New Jersey: State income tax applies to residents, and property taxes are among the highest in the country.

• Florida: No state income tax and lower property taxes—but insurance costs can be higher due to weather-related risks.

Consulting both a real estate and tax professional ensures full understanding of how each state’s laws affect your bottom line.

Final Takeaway

While both New Jersey and Florida offer strong real estate markets, their legal frameworks differ significantly.

• In NJ, expect an attorney-led, highly regulated process that prioritizes legal oversight.

• In FL, the process is streamlined and often managed by title companies—but still requires careful due diligence.

Understanding these distinctions helps you navigate your transaction with confidence, whether you’re buying, selling, or investing between the two.

Ready to Buy or Sell in New Jersey or Florida?

Whether you’re closing on a Bergen County property or exploring the Palm Beach area, I can help you connect the dots between both markets—and ensure your transaction runs smoothly from start to finish.

📞 Call Scott Selleck of The Selleck Group, KW City Views Realty at 201-970-3960
📧 Email [email protected]

Your cross-market real estate expert for New Jersey and Florida.