First Time Buyers welcome - patient and experienced guidance through
the process from beginning to end.
Affordability
A home is the largest single investment of most Americans. So
the first question is: can you afford the home you want to buy. At the time
of your home purchase, when the legal title is transferred to you, you will
have to pay the price for the home and closing costs. Usually the bulk of
the purchase price is paid with a mortgage loan. Afterward, you will
need to budget for insurance premiums, maintenance, monthly loan payments,
property taxes, utility bills, and repairs. To avoid surprises, examine
the seller’s
bills to get an idea of the monthly expenses for the home. Also check the
age and condition of appliances, plumbing, roof, structures and wiring since
they might need repair after your purchase.
When selling, you will be expected to pay realtor commissions (typically 4-6%) as well
as the New Jersey Realty transfer tax (partial exemption if over 62, legally blind, or disabled)
and a few other minimal costs such as overnight fees, notary costs, etc.
Whether buying or selling, (unless buying/selling cash with no title insurance)
you will be required to satisfy any open judgments and finalize any pending bankruptcies
or other types of lien/judgments.
Using a Lawyer
A lawyer can help you through the home buying
or selling process by preparing or reviewing the purchase contract, advising you about
and ordering title insurance and survey, preparing and
arranging for the documents necessary to complete the purchase. All of
our standard closings are done on a flat-fee basis and can be paid at closing
rather than facing unknown bills or having to produce large retainers.
You should consult a lawyer before you sign a contract to buy a home unless you clearly see
the three ("3") day attorney review period spelled out (which all NJ realtor form contracts should contain).
Although
a printed form may be used for the purchase contract, your lawyer can make
changes that protect you. For example, a change in the form may give you
the right to cancel the purchase (and get a refund of your deposit) if you
obtain an unsatisfactory inspection report.
Back to top
Using a Real Estate Agent
You may want a real estate agent to help you find and evaluate a potential
home or determine the pricing and strategy for the sale of your home. Many real estate agents participate in multiple listing services
that enable them to quickly identify homes that might be suitable for interested buyers.
Also, an agent can help you complete the steps involved in a home purchase.
For example, a real estate agent may help you obtain necessary documents, prepare your home for and hold open houses, and make suggestions that might affect the marketability of your home.
Because we keep our real estate practice geographically
limited to four counties (Camden, Burlington, Gloucester, Mercer), we have worked with many
local agents or agencies and are very familiar with local real estate procedures from all aspects
of the transaction.
Purchase Contract
The buying and selling process usually begins with an offer and acceptance of that offer
by the sellers at which time contracts can be drawn. Purchase contracts can be called a variety of names, including
deposit agreements, earnest money contracts, purchase agreements, and
receipts. You should not sign a binder or purchase contract unless
it protects your rights. A lawyer can prepare the document or review
a printed form agreement that you receive from your real estate agent.
Deposit
Most purchase contracts provide for a good-faith deposit to show the seller that
the buyer is serious. It should contain details about who will hold the deposit
and how it will be applied. If you don’t go through with buying the
home, you may lose the deposit. Typically, the deposit is held
in a non-interest bearing escrow account of the seller's real estate agency
or attorney. Your lawyer can advise you about the circumstances
that affect your rights to the deposit. Back to top
Conditions
Any conditions that must be met before you complete a home purchase should
be stated in your purchase contract. For example, many buyers make their
home purchase contingent upon obtaining financing, selling their present
dwelling or obtaining a satisfactory report from a home inspector. Before
you sign a purchase contract, your lawyer can make sure it contains provisions
allowing you to cancel the purchase and get your deposit back if your conditions
are not met.
Closing The Purchase
The “closing” of a purchase contract
usually completes the purchase and takes place at a meeting in the office
of an attorney, escrow agent, lender, or title insurance company. At the closing,
the buyer, seller, and lender sign a deed and mortgage, pay the purchase
price and exchange documents. At this time, the buyer may also receive
a title insurance policy, a statement of closing charges, and the keys
to the house. Our lawyers attend the closing with you, or on your behalf, to assure that the
documents and computation of closing costs are correct.
Closing Costs
Closing costs commonly range from 4 to 6 percent of the price of a home.
The costs are payable at the closing and include appraisal fees, attorney
fees, lender fees, prorations (insurance, taxes, and other items), recording
fees (for deed and mortgage), survey fees, title examination fees, title
insurance premiums and transfer taxes. Your lawyer can tell you what to expect
in closing costs and which are tax deductible. If you obtain FHA, VA or other
federally related financing, your lender must provide you with an estimate
of its charges before the closing. Reviewing or discussing specific financial details or options
are beyond the scope of the services we provide. Further, our
experience has shown it is best when the line of communication between yourself and your lender is
completely open and all options or questions discussed/verified (preferably in writing) before
the actual closing or day of settlement. Prior to that time your mortgage lender (broker/processor/closer)
should be able to advise you with a reasonable degree of reliability of what your payments will be, how much
you will need to bring (if any) to closing, etc.
We will, however, help with the process as your representative if you are having some particular problem with the lender
or if we can answer any general questions about financing and options of which we are aware.
Back to top
Inspection
Before closing, many home buyers hire a professional inspector to examine
the structure, plumbing, wiring,
appliances, heating and other systems for defects or needed repairs. Typically, the
contract can only be canceled
if defects or deficiencies are not corrected by the seller before closing.
Title Search and Survey
“Title” to the home is transferred when the
seller gives the buyer a deed at the closing. The title may be limited by easements
or building restrictions that affect your use of the home. Easements may
give utilities or government authorities the right to use a part of your land
for electrical lines, gas lines, sewers or drainage. Before closing, your lawyer
can conduct a title search and advise you of any limitations that may interfere
with your use of the home or affect its resale value. This title search also
will tell you if the seller truly owns the property and is capable of selling
it to you. Be sure to obtain an up-to-date survey of the property before
completing your home purchase. The survey may disclose encroachments that do
not appear in a title search.
Title Insurance
Title insurance protects you against the financial loss you may suffer
if there are encumbrances, easements or title defects that were not
revealed in a survey or title search. The cost of title insurance is
usually paid at closing. Your lender will probably require that you
buy title insurance to protect its mortgage interest in the home. We have
developed a relationship with one local title company who we use on our matters and with whom
we have been very pleased. Ordering title insurance and survey are handled by our
office on your behalf and we have the contacts to get things done quickly or get problems
fixed should they arise.
Below are some general checklists we have provided to help organize your thoughts and planning
during this exciting time. They may not completely apply to every situation and are not meant to be legal advice
but merely just a planning tool/thoughts to consider. Please feel free to contact us about your specific situation
or for a completely free no obligation consult.
BUYERS PRE-PURCHASE CONSIDERATIONS
A. Choosing and using a real estate agent
B. Choosing and using a lawyer
C. Finding a lender
D. Housing market considerations
E. How expensive a home is affordable
F. New construction or fixer-upper
G. Personal preferences
HOME INSPECTION
A. Access
B. Additions
C. Appliances (age condition)
D. Boundary lines
E. Electricity
F. Floor plan
G. Gas
H. Heating and cooling
I. Insulation
J. Location
K. Lot
L. Monthly expense (insurance, utilities, repairs and taxes)
M. Plumbing
N. Roof
O. Sewers and drains
P. Size
Q. Structural defects
R. Termite infestation
S. Water heater
T. Wiring |
|
PURCHASE CONTRACT
A. Conditions (inspection, financing, legal review etc.)
B. Date for closing
C. Date for possession
D. Deed to be furnished
E. Deposit
F. Description of real estate property
G. Inspection
H. List of personal property
I. Price
J. Proration of taxes, insurance, and other charges
K. Survey
L. Warranty
CANCELLATION RIGHTS
A. Defect in structure, plumbing, wiring, appliances, etc. NOT fixed by seller
B. Easements and restrictions
C. Lawyer approval (3 day attorney review period in broker-prepared standard contracts
D. Loan approval
E. Liens
F. Zoning
TITLE EXAMINATION
A. Easements
B. Liens
C. Mortgages
D. Restrictions on use
E. Survey
F. Taxes
CLOSING DOCUMENTS
A. Closing Statement
B. Deed
C. Loan documents
D. Survey
E. Title insurance policy
CLOSING COSTS
A. Closing document fee
B. Mortgage document fee
C. Proration of taxes, insurance, etc.
D. Recording charges for deed and mortgage
E. Title examination fee
F. Title insurance fee
G. Transfer taxes
H. Attorney fees
Back to top
|
|
We
provide the following services with respect to Residential
Real Estate closings and handle matters in Camden, Burlington,
Gloucester, and Mercer Counties.