How a land sale
runs in South Jersey
By Justin Kelly
NJ Real Estate Broker-Salesperson
Once an offer on a lot is accepted, the buyer first checks the land (called due diligence), then the sale closes. Here is what each stretch covers, how long it tends to take, and what you do not have to do first.
At a glance
- Due diligence usually runs 30 to 45 days: title status, zoning, environmental review and any subdivision approvals are checked in that window
- Closing follows within 15 days after all the contingencies are met
- Contingencies vary by lot: a spot lot in an existing neighborhood and acreage that needs a subdivision carry different ones
Guide
If you own a single lot on an existing street, a few acres or a larger piece of land in South Jersey and are thinking about selling, here is what happens after you accept an offer, so you can plan around it.
Due diligence usually runs 30 to 45 days. In that window the buyer checks title status, zoning, environmental conditions and, where the plan calls for it, subdivision approvals. Each of those can stretch or shorten the period. A lot with clean title, zoning that already fits the plan and no environmental questions moves through quickly; a parcel that needs a subdivision approval waits on the township board's calendar.
Once the contingencies are met, closing follows within 15 days. The contingencies themselves vary lot by lot: what a buyer needs cleared on a single lot in an existing neighborhood is different from what a buyer needs on acreage that will be divided into several homesites. That is why the same buyer can close one lot in about two months and another in three or four.
What the owner does not have to do first: clear trees, take down an old structure, order a survey or apply for approvals. The buyers in our network typically purchase lots as-is, and from contract on the work sits with the buyer, whether it is a single lot on an existing street or land being split into a few lots. A larger major subdivision can come with a requested seller contribution toward improvements, and that is spelled out before anything is signed.
Not every lot fits what our current buyers are looking for, and we say so. Even then, we may be able to connect you with another buyer. Either way, you receive a clear assessment of your own lot, including what a buyer will likely need cleared before closing and roughly how long each step takes.
Terms vary deal to deal; this is the structure a lot purchase usually takes, not a promise on any specific property. Written by Justin Kelly, NJ Real Estate Broker-Salesperson. More at South Jersey New Construction.
Our take
Two periods make the calendar: 30 to 45 days of checking, then about 15 days to close once the contingencies clear. If you own a lot or acreage in South Jersey and are weighing a sale, we can tell you which contingencies yours would carry.
