Are Real Estate Attorneys Important in a Residential Transaction?
Should I hire a Real Estate Attorney when buying or selling a property?
Having a real estate attorney involved in the negotiation process before the New Jersey State Contract is signed by both the seller and the buyer is essential.
According to New Jersey law, a home buyer must have an attorney. This is because the state requires that all residential transactions utilize the New Jersey State Contract for a home sale, and to enter into a contract, you must have the support of a lawyer. Home sales refer to residential properties, defined as single-family homes, condos, land on which a single-family home will be built, or small group homes (one to four houses).
The New Jersey State Contract is the official means through which the buyer makes an offer. It includes much essential information about the sale of the property. It requires that some back work like having an inspector look at the house to determine whether any outstanding repairs need to be completed or any other contingencies to the contract’s completion need to be met for sale to be finalized.
After negotiations, the seller signed this finalized form, and it becomes a binding contract the two parties will use to complete the residential transaction. A copy of this contract is reviewed by both the seller’s attorney and the buyer’s attorney in an Attorney Review process. This contract includes a lot of essential information for the sale, which each party’s attorney must review. It includes how much money will be put down as a cash down payment to close the purchase deal, also called ‘earnest money.’ The purchase contract also includes an outline of contingencies that both parties must meet for the contract to stand. Such contingencies could be house repairs that the seller must complete, the buyer’s current home’s sale before the sale is finalized, and other contingencies. These contingencies protect both the buyer and the seller and ensure that the transaction can be clear and final without catch-ups. Additionally, the legal purchase contract the attorney’s review includes the official closing date of sale, which is the point at which the new owner may move in.
Having a real estate attorney involved in the negotiation process before the New Jersey State Contract is signed by both the seller and the buyer is essential because as elements of the home sale and contingencies surface, such as the findings of a home inspector, a buyer’s attorney can ensure that such specifics agreed upon by the buyer and seller make it into the official contract, where it becomes a legally binding agreement.
The attorney review of the New Jersey state purchase contract signals the beginning of the property sale’s home stretch.
Obtaining Title Insurance and Filing With the County
If you have taken out a mortgage with a lending institution to purchase the house, the institution will require that you purchase title insurance for the property. The institution will also require that you do your research, ensuring that no other outstanding titles exist for the property, as would be the case if there were multiple owners or outstanding debts tied to the house. Title insurance protects if any outstanding debts on the house surface you weren’t aware of when you made the purchase.
The obtaining of title insurance and receipt of the actual funds to purchase the house from your mortgage lender are processes that the real estate attorney must attend, as there is several legal jargons that must be sifted through to ensure that the entirety of the settlement with your mortgage lender and the closing of the home sale is up to legal New Jersey real estate law standards.
Assuming that all goes well in the final processes, you’ll receive the clean deed to your new home, which signifies that you are now the legal owner of the property. Congratulations! Some final steps that your real estate attorney can facilitate are submitting appropriate documents to the New Jersey county of your new residence. With these final documents’ submission to the county, you will be set to pay property taxes and consider yourself a law-abiding and contributing citizen of your new residence. Welcome home!
Contact our Seasoned Real Estate Attorney in Monmouth and Ocean County Today
To meet with a member of our team today regarding closing on your dream home, please call 7328123102 today for a free and confidential consultation to discuss your individual needs and concerns.