Heard a South Orange home is “under contract” and wondering what that really means for your move? You’re not alone. It’s a common milestone that signals real progress, yet it can feel unclear and full of fine print. In this guide, you’ll learn exactly what “under contract” means in New Jersey, what happens next, and how to keep your deal on track through closing in South Orange.
Let’s dive in.
What “under contract” means in New Jersey
When a South Orange property is “under contract,” the buyer and seller have a signed purchase agreement and binding terms, subject to the contract’s contingencies. In New Jersey, there is usually an attorney review period right after signing. During that short window, either party’s attorney can cancel or modify the agreement.
You’ll also see listing terms like “under contract with contingencies” and “pending.” These labels are practical shorthand, not legal statuses. “Pending” often means major contingencies have been cleared, and the sale is on its way to closing. Until all contingencies expire or are waived, the deal is not final.
The South Orange contract-to-closing roadmap
Below is the common sequence you can expect after your offer is accepted in South Orange, with typical timing and who does what.
Contract signed and deposit submitted
Once buyer and seller sign the purchase agreement, the contract terms take effect. The buyer typically delivers an earnest money deposit to the listing broker or attorney’s escrow. This deposit is governed by the contract and is refunded if the deal is canceled within allowed terms.
Attorney review period
The standard New Jersey contract provides a short attorney review period, often around three business days unless the parties negotiate a different timeframe. In this phase, either attorney can disapprove the contract or propose changes. If the contract is disapproved, the deposit is usually returned under the terms of that clause. Local attorneys are central to this step and will also coordinate subsequent addenda and closing documents.
Home inspections and repair negotiations
Buyers schedule a comprehensive home inspection and, if needed, specialists for items like roof, HVAC, pest, radon, septic, or lead. Inspections typically occur within 7 to 14 days after attorney review concludes, per the contract. Findings can lead to repair requests, credits, or price adjustments. Whether repairs are made depends on what the parties negotiate and document in writing.
Appraisal ordered by the lender
If the buyer is financing, the lender orders an appraisal to confirm value. Appraisal turnaround often runs 1 to 3 weeks depending on appraiser availability. If the appraised value comes in low and there is an appraisal contingency, the parties may renegotiate the price, the buyer may add cash, or the buyer may have the right to cancel based on the contract terms.
Mortgage underwriting and loan commitment
The buyer completes the loan application and provides documentation for underwriting. Many conventional loans in New Jersey close in about 30 to 45 days, sometimes longer. Under federal rules, buyers must receive the Closing Disclosure at least three business days before most mortgage loan closings. Prompt responses to the lender keep this step moving.
Title search and clearing issues
The title company or closing attorney orders a title search to check for liens, judgments, easements, and taxes. Title work often wraps in 1 to 3 weeks, but it can take longer if issues appear. In Essex County, payoff statements, municipal charges, and tax prorations need careful attention to avoid delays at closing.
HOA or condo documents, if applicable
If the property is a condo or in a homeowners association, buyers and lenders review bylaws, budgets, rules, and any estoppel certificates. Turnaround for documents varies by association. Make requests early so the lender has what is needed for final approval.
Final walkthrough and closing
A day or so before closing, the buyer completes a final walkthrough to verify the property’s condition. At closing, all parties sign documents, funds are disbursed, and keys are exchanged. The deed and any mortgage are recorded with the Essex County Clerk after closing.
Common New Jersey contingencies explained
Contingencies are conditions that must be met for the deal to proceed. Here are the ones you’ll see most often in South Orange:
- Attorney review: Allows attorneys to cancel or amend during the stated period.
- Home inspection: Lets the buyer inspect and negotiate repairs or credits within set timeframes.
- Financing: Protects the buyer if they cannot secure loan approval by the deadline.
- Appraisal: Provides options if appraised value is below the purchase price.
- Sale-of-home: Buyer must sell another property first; sellers often scrutinize this in competitive situations.
- Title: Buyer can exit if material title defects are not cured.
- HOA/condo documents: Buyer and lender review association rules and financials.
- Lead-based paint (pre-1978 homes): Buyers have a period for lead inspection unless waived.
South Orange and Essex County factors to know
Local details can affect timing and paperwork. Plan for these early:
- Municipal checks: Confirm whether there are open permits, certificates, or code issues that must be addressed before closing.
- Recording and taxes: Deeds and mortgages record with the Essex County Clerk. Property and school taxes are prorated at closing based on local schedules.
- Association rules: South Orange includes single-family homes and multi-unit buildings, some with associations. Review parking rules, budgets, and policies during contingencies.
- Inspections: Radon and termite inspections are common in New Jersey. Consider radon testing regardless of neighborhood norms.
How to keep your deal on track
A strong contract is only the start. Use these practical steps to reduce risk and stress:
- Lock in timelines early: Align inspection windows, appraisal scheduling, and loan milestones in writing.
- Respond fast to lender and title requests: Delays often come from missing documents or slow responses.
- Negotiate repairs clearly: Put all agreements in signed addenda. Avoid relying on verbal promises.
- Prepare for appraisal outcomes: Have a plan for renegotiation, additional cash, or an appraisal rebuttal.
- Order title early: Early title searches surface liens or permit issues with time to fix them.
- Protect your funds: Wire fraud is a known risk. Verify wiring instructions by calling a known phone number for your title company or attorney. Do not rely on email alone, especially if instructions change.
Typical timeline at a glance
- Day 0: Offer accepted, contract signed, earnest money deposited.
- Days 0–3: Attorney review period, unless negotiated otherwise.
- Days 3–14: Inspections completed and repair discussions begin per contract.
- Days 7–30+: Appraisal and mortgage underwriting in progress.
- Days 14–30+: Title search and any HOA document review in parallel.
- Around days 30–60: Final walkthrough and closing, with recording at the Essex County Clerk.
The bottom line for South Orange buyers and sellers
“Under contract” is a major step, but it is not the finish line. Between attorney review, inspections, financing, appraisal, title work, and municipal checks, there are several key gates to clear. With a clear plan, responsive communication, and the right local professionals, you can move from accepted offer to a smooth closing in South Orange.
If you want expert guidance through each step and a coordinated, concierge experience, connect with Ryan McGurl for a Private Consultation.
FAQs
What does “under contract” mean in South Orange real estate?
- It means buyer and seller signed a purchase agreement, but the sale can still be canceled or changed if contingencies or attorney review allow it.
How long is attorney review in New Jersey?
- It is commonly around three business days, unless the parties negotiate a different period in the contract.
Can a South Orange home under contract still be shown?
- Sometimes, depending on the seller’s instructions; the listing status and showing policy are set by the seller and their agent.
What happens if the appraisal is low in South Orange?
- If there is an appraisal contingency, parties may renegotiate price, the buyer may add cash, or the buyer may cancel per contract terms.
How long does it take to close after going under contract?
- Many New Jersey transactions close in about 30 to 60 days, depending on financing, inspections, title, and HOA requirements.
What South Orange municipal items can delay closing?
- Open permits, code issues, or required certificates can surface during title or municipal checks and should be addressed early.
Do sellers have to make repairs after inspections?
- Not automatically; repairs and credits are negotiated and must be documented in signed addenda to be enforceable.
