If you are buying or selling a home, these are some important legal objectives to know:

Most real estate contracts in New Jersey are subject to an Attorney Review provision:

• Extends over three (3) business days from Seller’s acceptance of Buyer's offer;
• Provides the attorney and client an opportunity to examine the contract with to ensure your understanding and comfort;
• ¨¨Either party may terminate the contract, or make revisions thereto, during attorney review, without penalty

Most real estate contracts in New Jersey contain a Home Inspection Contingency:

·         Normally you have ten (10) days from the conclusion of attorney review to conduct your home inspection

• House to be inspected by a licensed home inspector
• We examine the report with you and negotiate the resolution of issues raised during the inspection and addressed in the report
• The Seller is not legally obligated to remedy the requested issues
• If the parties can not come to an agreement on the appropriate resolution of significant home inspection issues, the parties may terminate the contract, and the buyer may receive a refund of his/her deposit 

Most buyers require financing in order to complete their transaction.  As a result, most deals often contain a mortgage contingency, as follows:

 

• Normally satisfied within 21 - 30 days from the conclusion of attorney review
• Buyer will not be obligated to purchase the property unless you are approved for the financing disclosed in the contract
• The mortgage contingency is satisfied upon issuance and acceptance of a mortgage commitment from your Lender
• Buyer’s Lender orders an appraisal of the property, at your expense, to ensure the house is worth the purchase price and loan amount
• Caution: a pre-qualification or pre-approval letter is not a mortgage commitment

 

Inherent in every real estate transaction is a title contingency, which means:

 

• You will not need to purchase the property unless the Seller can deliver to you insurable title at closing 
• We order and review title commitment with you and your Lender
• Ensure all judgments and/or liens are satisfied at closing
• Obtain title insurance that will insure against any encroachments, judgments or liens
• Order and review survey

 

Once the foregoing applicable conditions are satisfied, a Closing will be scheduled.  Customarily:

 

• Closing occurs at the office of Buyer’s attorney
• Buyer will execute loan documents
• Counsel will examine and record title documents
• Counsel will examine municipal approvals:  Seller must provide certificate of continued occupancy, smoke detector certificate
• The buyer will bring a cashier’s check to closing to cover the closing costs and balance of purchase price; we will disburse all funds
• The Seller will produce the property vacant in broom-swept condition, and will deliver the keys at closing

 

 

 

 

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