Clifton, NJ real estate attorney Peter G. Aziz explains when a buyer can cancel a real estate contract in New Jersey. He explains that the majority of real estate contracts include contingencies, which are conditions that must be met for the contract to proceed. The primary contingencies are the inspection contingency, which ensures the property is habitable; the mortgage contingency, which applies unless the buyer is paying all cash and depends on securing financing; the appraisal contingency, which requires the bank to confirm the home’s value matches the purchase price; and the title contingency, which ensures the property is free of liens, judgments, or other encumbrances. He emphasizes that a buyer can only properly terminate a contract under one of these contingencies. For example, if an inspection reveals issues within its scope, the buyer can cancel; if a mortgage commitment isn’t obtained within the allotted time, usually 30 days, termination is permitted; if the home appraises for less than the contract price and the seller refuses to negotiate, the buyer can terminate; and if title issues aren’t resolved, cancellation under the title contingency is allowed. He stresses to his clients that contracts of sale are strictly enforced in New Jersey, making it essential to understand and follow these contingencies carefully.