One of the largest and important events concerns the buying or selling of a home or property. Having a trusted and specialized professional guide you through the events is invaluable in ensuring that you are properly safeguarded while traveling to the closing. We review and negotiate purchase and sale agreements to build contingencies to tailor the Agreement to our client’s needs and account for the potential risks. We assist in negotiating inspection concerns, and we review title to ensure that you are not purchasing a property with inherent liens or debts. We review the fees and costs to ensure that they are within the proper standards and we assist with the closing to ensure that the sale or purchase goes smoothly. Any transaction involves potentially complicated contractual issues. We create value for our clients by bringing years of experience to overcome potential obstacles to realize your closing. The goal is to close your real estate transaction as you planned, while protecting against problems and accounting for your concerns. Our residential and commercial real estate practice includes:
- First time home buyers
- Seasoned buyers and sellers for single family, multifamily homes, condominiums, townhomes, estate sales, co-ops
- Short Sale
- Developers and Buyers for construction contracts and new construction project
- Lenders and borrower for commercial and residential refinance loans
- Other real-estate entities in a wide variety of commercial and real estate transactions and disputes
Whether engaging in a large-scale commercial development or negotiating the purchase or sale of a house, land, co-op, or condominium, you can trust our attorneys to provide comprehensive oversight and counsel in managing all transactional aspects of the process, as well as in resolving litigation that may arise during and subsequent to a transaction.
It is usually expected that Buyers attend the closing. Sellers often choose not to attend and typically presign the closing documents, giving a power of attorney to the lawyer representing them. However, it is uncommon for buyers not to attend the closing since many lenders require a borrower to attend a closing. In situations where there is no lender, then Buyers do not usually attend the closing.
Title insurance protects against problems in the title to your property. Mortgage lenders now require all borrowers to buy “mortgagee” title insurance that protects the bank for the full amount of the mortgage in case of title problems (such as unreleased mortgages, forgeries, etc.). An “owners” title policy protects the owner’s equity. Premiums are set by the insurance department of the State of New Jersey and vary depending upon the amount of coverage required. It is paid at closing and is paid only once. However, upon refinancing, the new lender will again require a new mortgagee policy (to be sure there have been no intervening encumbrances).
The seller’s expenses usually include a real estate broker’s fee. The seller also has to pay a Real Estate Transfer Fee to the County wherein the property is situated. There will be small recording fees, miscellaneous fees.
Bank expenses fees including but not limited to processing fees, application fees, credit reports, tax service fees, document preparation fees, and similar fees. In addition, many banks now require that there be an escrow for taxes and homeowners’ insurance. In addition to the tax escrow, the buyer reimburses the seller for the taxes prepaid by the seller. A buyer typically pays a title search and an insurance fee. Additionally, a buyer will pay for recording fees, miscellaneous fees, and a survey fee, if one is ordered.
Ideally, sellers sell their home in the morning and purchase their new home with the proceeds from the sale later that same day. An attorney working with the client will make sure that this happens in this sequence. Typically, a seller gives occupancy to the buyer at the time of closing. However, in some instances, the seller cannot give occupancy to the buyer (because their new home may not be ready for them to move in to). Under those circumstances, a use and occupancy agreement is entered into between the buyer and the seller at the time of closing whereby a firm date is established for the seller to move out of their new home while paying a per diem rent typically based on the carrying charges of the buyer. In a typical use and occupancy agreement, there is an escrow provided and a penalty provided in the event the seller does not vacate the home at the agreed-upon date.
This is a special type of insurance that covers future losses due to flooding, which is not covered by most homeowners’ policies. If your property is located in an area requiring the purchase of flood hazard insurance, the lender will ask that you demonstrate that you have this insurance and that you have added its name as a loss payee as part of the terms of the financing. As with homeowner’s insurance, flood insurance covers the risk of any loss due to flooding that may occur during the year for which the premium has been paid. A premium is payable each year.
Contact the Law Office of Tejas S. Kapadia today
We understand that if you are considering an attorney then your matter is of extreme importance. Our response will be prompt, discreet and with the care and understanding that you deserve. Schedule an appointment with our Real Estate attorney now.
Call (201) 632-1529 or complete our online contact form to schedule a consultation.
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