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 sale usually runs in two periods: 30 to 45 days of due diligence, then closing within 15 days after the contingencies are met. Here is what gets checked in each, and what a landowner does 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
A lot sale in South Jersey takes a set shape once an offer is accepted: a due diligence period, then a closing. If you own a spot lot, a few acres or a larger parcel and are weighing a sale, here is what each period covers, 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 spot 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 purchase lots as-is, and from contract forward the work on a spot lot or a minor subdivision sits on the buyer side. 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 an active buyer, and we say so. If a property does not fit the pipeline, you may still be connected with another buyer in the network. Either way you get a straight answer on your own situation, including which contingencies your lot is likely to carry and roughly how long each period should take.
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.
