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Buying or Selling your
Home
Buying or selling a home (or any other piece of
real estate) is a major transaction. In fact, purchasing a home will probably be
the largest single investment you'll ever make. It's important to remember that
the purchase of real estate is unique because real estate is:
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Fixed in location,
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Transferred by deed.
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Governed by special state laws.
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Transfer of property in New Jersey is called a
''closing" or "settlement." Technical aspects of the transfer of
a piece of real estate are complicated.
Before considering the purchase or sale of any
specific piece of real estate, you should consult us. Years of education and
experience have enabled us to pinpoint legal problems in advance and
to reduce the chance of something going wrong later.
Some
Possible Problems
In fact, many serious problems can crop up whenever
you plan to buy or sell real estate. For example:
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Missing heirs, forgers, invalid divorces, irregular
foreclosures, and other unexpected complications can leave the legal
ownership of the property in doubt, even though the deed appears to convey
full title.
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You may not be able personally to determine
beforehand whether or not the property has serious physical defects such as
structural problems, water conditions, inadequate electrical wiring or
termite infestation.
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The seller's title to the property may be burdened
by mortgages, easements, unpaid taxes and improvement assessments,
judgments, or other liens.
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The description or survey of the property may be
inadequate or inaccurate. Thus, you may actually be acquiring less property
than you thought or even a different parcel.
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All-important details of the transaction may not be
contained in the Contract of Sale. Anything left out, even if agreed upon by
word of mouth, is unenforceable
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Deed or zoning restrictions may prevent you from
using the property as you desire.
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When you retain our law firm for the purchase
or sale of real estate, you obtain the services of a trustworthy and loyal
advisor. We assume responsibility for, coordinate, and guide all aspects
of your transaction "from contract to closing."
Considering the possible pitfalls, the need to
contact our law firm at the outset cannot be overemphasized. Before you sign
anything or offer any deposit, contact us !
The
Contract of Sale
A Contract of Sale is an agreement for the purchase
and sale of real estate. This is the most important document in any real estate
transaction because it establishes the respective rights and responsibilities of
the purchaser and the seller. The contract may be called a "binder," a
"broker's agreement," a "memorandum of sale," or a
"deposit receipt.'' However, if the paper contains the essential elements
of a contract, it is a valid and binding contract of sale and no further
"formal" or "legal" contract is necessary to bind you. From
then on, any dispute between the parties will be resolved by referring to the
provisions of the contract.
Since the contract of sale is such an important and
legally binding contract, Our firm should be consulted before you sign it. We
will answer your questions and will be able to provide you with a good estimate
of closing costs and other costs involved in the transaction.
How
A Lawyer Can Help
There are many other important ways in which an
attorney can help protect your interests during a real estate transaction.
As the purchaser's attorney we can:
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Prepare, review and explain the contract of sale.
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Assist you regarding your questions on matters such
as termite inspections, structural inspections, the zoning status of your
property, restrictions on construction or use, and property insurance.
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Assist you with your mortgage application, review
your mortgage commitment and explain your prepayment rights.
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Order and review the survey and all title searches
to clearly define the description, location and legal ownership of the
property.
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Help to resolve any title problems.
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Obtain title insurance policies covering your
ownership interest and lending institutions mortgage interest, and advise
you about exceptions which may appear in your title policy.
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Settle any problems regarding transfer of
occupancy, settlement date and possession.
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Determine adjustments for taxes and other costs.
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Prepare the final closing statement and other
documents. (This information should be sent to you in advance of the closing
date.)
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Represent and advise you at the closing where
documents such as the closing statement, the seller's deed and affidavit of
title and the bond and mortgage are signed. All funds are transferred at
this time also.
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Record the deed and mortgage and cancel any
existing mortgages and liens.
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Deliver all-important documents to you for your
safekeeping after closing.
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As the seller's attorney we can:
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Prepare, review and explain the contract of sale.
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Gather important title information for the
purchaser's attorney, thus expediting the search and survey process.
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Resolve any title problems revealed by the
searches.
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Cooperate with, the purchaser's attorney in
resolving possession and closing date problems.
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Assist you in determining the correct balance due
on your mortgage.
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Cooperate with the purchaser's attorney in
preparing the final closing statement.
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Prepare the deed affidavit of title, survey
affidavit and any other necessary documents.
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Represent you at the closing and make certain that
you receive the correct amount of proceeds from the sale.
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Of course, these items represent only a partial
list of services which may be rendered us during real estate transactions and additional services
may be necessitated by
your particular purchase or sale.
Fees
and Charges
When purchasing or selling real estate, a small
investment in sound legal advice can give you peace of mind and might save you
thousands of dollars. Our law firm charges a reasonable fee based upon the work
required to handle your transaction. We will be happy to give you an estimate of
his fee during the initial conference. You will find that the attorney's fee is
a reasonable cost for the responsibility assumed, the work performed,
and the results obtained.
Other
important points to remember about real estate fees and charges
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Funds paid for a closing include not only the
attorney fee but also the
exact costs of the searches, survey, recording costs, and title insurance
premiums.
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Purchasers must also pay lender’s charges, including
application fees, other charges and escrows required by the lender.
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Real estate brokers generally charge a commission
to the seller based on a percentage of the sales price. Realtors perform a
valuable service by bringing buyers and sellers together but they do not
eliminate your need to be represented by an attorney.
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Homeowner's insurance is insurance which provides
coverage against liability for a broad range of casualties such as fire, theft,
and accidents. You must pay an annual premium to continue this coverage.
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Flood insurance may also be required or recommended
in some areas. You must pay an annual premium for this coverage.
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Title insurance is insurance against title defects
not revealed by the public record. The premium is paid at the closing and the
coverage remains for as long as you own your home.
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Remember, the fact that you obtain title insurance
in no way eliminates your need to be represented by an attorney. The title
insurance company examines and insures the title. If the title company
determines not to insure against certain items, the exceptions from coverage are
described in the title policy. Only an attorney can tell you how these
exceptions will affect your coverage.
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You still need the services of your own attorney to
represent you in all phases of the transaction from contract through closing.
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Our
Law Firm
When you retain us for the purchase or
sale of real estate, you obtain the services of a loyal and trustworthy advisor
who will guide your transaction from contract to closing. Mainly because of our efforts, the closing should be a calm and amicable meeting for the
signing of documents and the transferring of funds.
We charge a reasonable
fee based on responsibility assumed, work performed, and result obtained. When
you complete the outline of closing costs, you will see that our fee
is a relatively small part of the total closing costs.
We frequently get phone calls from individuals
asking our "price" for a closing. This is usually a waste of time for
both the caller and ourselves as it betrays their fundamental misunderstanding
of our function in a closing.
In every service one hires someone always is willing
to do it cheaper. But think about the last time you hired a tradesman on that
basis. What was the result? And how important is it to you to have one of
the most important transactions of your life handled with courtesy, efficiency, expertise, and
personal attention? Don't make the mistake of choosing an attorney solely on the basis of
fee.
Give
us a call the next time you buy or sell a house.
Below
is a short outline of some of the costs associated with the sale or purchase of
a home.
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A Cost Checklist
You
may want to use the following real estate cost checklist while
discussing costs with us:
Purchaser's Closing
Costs
(a)
Reimbursement for Disbursements for:
County Search ...................................................................................
$
Municipal Searches
Judgment Search
Recording Costs
Survey
Mortgage Policy of Title Insurance
Owner's Policy of Title Insurance
Other
Total Reimbursement for Disbursements ........................................
(a)
(b)
Attorney's fee .........................................................................................
(b)
(c)
Funds Required by Lending Institution:
Application
Fee and Credit Report ......................................................
$
Taxes: ‑ month at $ ‑ per month
Interest from to . .
Review of documents, lender's counsel
Other
Total funds required by lender ....................................................................
(c)
(d)
Miscellaneous:
Premium,
homeowner's insurance policy .........................................
$
Other, such as adjustments to seller for taxes,
water and sewer charges, and fuel
Total Miscellaneous ......................................................................................
(d)
Total Purchaser's Closing Costs (a, b, c,
and d) ................
Seller's Closing Costs
(a)
Attorney's Fee ............................................
(b)
Realtor's Commission _% x price of $ . ......
(c)
Realty Transfer Fee. $3.50 per $1,000.00 of price, or less if
Seller qualifies for exemption ..............................
Total Seller's Closing Costs (a, b, and c) ....................
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