Real Estate Transactions
The Residential Real Estate Transaction can be a daunting task even if you have purchased and sold a home before. You should be aware that you do have certain contractual rights upon signing a Purchase Sale Agreement. You should take full advantage of the three day attorney review period. If you are unaware, the three day attorney review period begins to run when the second party (Buyer or Seller) executes and delivers the agreement to the other party. Generally, if the contract is not disapproved within three business days (excluding weekends and holidays) it will be considered binding on both parties as written. In most cases the contract has been prepared by the Real Estate agent under the authority of a Real Estate broker. Often times these boilerplate contract forms are not be tailored to meet your particular needs and wants. At the very least you should contact a licensed attorney to explain to you the various elements of the contract before this three day period has lapsed and decide if changes need to be made before approving the contract and moving forward with the transaction.
The aforementioned attorney review period is only one of the numerous reasons hiring legal counsel for your Real Estate Transaction can be advantageous and protect your rights. Review of Home Inspection Reports, Review of Title Reports, preparation of closing documents, and a number of other tasks can be provided by your legal counsel. With predatory lending and the current Real Estate market problems you should strongly consider hiring legal counsel to protect your rights and to ensure your residential real estate transaction is conducted properly.
Contact our office today if you have signed a purchase and sale agreement for property in the State of New Jersey or if you are selling your home privately and want a residential real estate contract drafted to meet your needs. In most cases your legal fees may only be slightly more than hiring a Title company to close title. Although most Realtors and Title Agents are highly trained and knowledgeable when it comes to Real Estate Transactions they are not licensed to give you legal advice nor should they be reviewing contracts or drafting legal documents without the advice and review of legal counsel. Therefore, you should consider contacting an attorney if you have questions about your legal rights or the legal issues that may be present with your transaction.
The aforementioned attorney review period is only one of the numerous reasons hiring legal counsel for your Real Estate Transaction can be advantageous and protect your rights. Review of Home Inspection Reports, Review of Title Reports, preparation of closing documents, and a number of other tasks can be provided by your legal counsel. With predatory lending and the current Real Estate market problems you should strongly consider hiring legal counsel to protect your rights and to ensure your residential real estate transaction is conducted properly.
Contact our office today if you have signed a purchase and sale agreement for property in the State of New Jersey or if you are selling your home privately and want a residential real estate contract drafted to meet your needs. In most cases your legal fees may only be slightly more than hiring a Title company to close title. Although most Realtors and Title Agents are highly trained and knowledgeable when it comes to Real Estate Transactions they are not licensed to give you legal advice nor should they be reviewing contracts or drafting legal documents without the advice and review of legal counsel. Therefore, you should consider contacting an attorney if you have questions about your legal rights or the legal issues that may be present with your transaction.
Top issues to be aware of before entering into a Residential Real Estate Transaction
There are numerous issues to consider before purchasing a home. Selecting the right professionals to help you through the process can mean the difference between a smooth transaction and your worst nightmare. If you are purchasing it is important to review these issues in advance of making an offer or signing a contract. Often times, first time buyers are unaware of the what they need to know when buying a home. Researching what your rights and needs are can make your transaction much easier. Here are just a few of the things you should aware of before purchasing a home.
1. Know your credit score - If you are purchasing a home and require a mortgage loan it is important to know your credit score and how it effects your ability to obtain a mortgage loan. Research your credit score in advance and if there are discrepancies, take the appropriate action to correct them through the credit scoring agencies. Correcting discrepancies may take significant time, and may cause delay in your ability to obtain a mortgage loan approval.
3. Select your mortgage lender/broker wisely - Often times, your loan officer will assist you through the loan process and can provide you with a pre-approval loan amount. This will help you understand your budget prior to searching for a home. Selecting the right Lender for you is an important process and you should take the necessary time to select one that you are comfortable with.
4. Select your Real Estate Agent wisely - Your Realtor is an important selection. He or she will be searching for homes that are on the market and advising you as to certain aspects of the transaction. They will also negotiate the sale price on your behalf. You will be relying heavily on their professional advice with respect to probably one of your most costly investments, therefore, you should take the time to research your Realtor before choosing which one is best for you.
5. Review your contract of sale- Although many people choose to retain lawyers to provide legal advice with respect to real estate sale contracts it is not mandatory. Although it is wise to retain legal counsel, you should take the appropriate time to read and review your contract of sale before signing. If the contract of sale is not disapproved within three days of execution, it will likely be binding as written. Therefore, you should review the contract carefully and consult legal counsel during the attorney review period to avoid this potential problem.
6. "Buyer beware" Home Inspections - Although a home is sold "as is", you are typically entitled to inspections under the contract of sale. Your home is often your most costly investment and you should be aware of any potential issues that could effect that investment before closing title. Although a home may appear to be in good condition, it is important to have a trained professional inspect for certain defects. Often times, defects go unnoticed prior to making an offer to purchase a home. Selecting the right professional home inspector can make all the difference. They will provide you with an inspection report, which can give you insight into not only possible defects but what repairs may be necessary in the immediate future. This may impact your budget, which can deter your purchase, or become an issue to negotiate during the home inspection clause of your contract.
7. Select your Attorney wisely - Although you are not required to retain legal counsel to conduct a closing of title in the State of New Jersey, it is highly advisable. Your Realtor or Title agent is not licensed to practice law in the State of New Jersey and therefore, should not be providing you with legal advice. The Contract of Sale is a legal document that should be reviewed by a licensed practicing attorney to insure your rights are protected and that the contract of sale is tailored to meet your needs. Selecting the right attorney is important as the attorney should be providing you legal advice with respect to the contract, inspections, and title during the course of the transaction.
8. Have your financial documents ready - Often times the mortgage loan process requires you to provide copies of tax returns, bank statements, pay stubs, and other vital documents. Having these documents ready to supply your Lender may expedite the loan process. Be proactive. Waiting for your loan officer to request these from you may delay your loan approval. Having them ready to supply immediately will help your loan officer obtain your approval.
9. Closing Costs - You will more than likely be required to bring funds to closing for certain costs associated with your transaction. Loan fees, attorneys fees, title costs, and other miscellaneous fees will likely be required at your closing of title. Be prepared for your closing date. Ask your professionals to provide you with an estimate of these costs so you have the necessary funds ready to close title. These funds typically need to be certified funds such as a bank check or wire transfer.
1. Know your credit score - If you are purchasing a home and require a mortgage loan it is important to know your credit score and how it effects your ability to obtain a mortgage loan. Research your credit score in advance and if there are discrepancies, take the appropriate action to correct them through the credit scoring agencies. Correcting discrepancies may take significant time, and may cause delay in your ability to obtain a mortgage loan approval.
3. Select your mortgage lender/broker wisely - Often times, your loan officer will assist you through the loan process and can provide you with a pre-approval loan amount. This will help you understand your budget prior to searching for a home. Selecting the right Lender for you is an important process and you should take the necessary time to select one that you are comfortable with.
4. Select your Real Estate Agent wisely - Your Realtor is an important selection. He or she will be searching for homes that are on the market and advising you as to certain aspects of the transaction. They will also negotiate the sale price on your behalf. You will be relying heavily on their professional advice with respect to probably one of your most costly investments, therefore, you should take the time to research your Realtor before choosing which one is best for you.
5. Review your contract of sale- Although many people choose to retain lawyers to provide legal advice with respect to real estate sale contracts it is not mandatory. Although it is wise to retain legal counsel, you should take the appropriate time to read and review your contract of sale before signing. If the contract of sale is not disapproved within three days of execution, it will likely be binding as written. Therefore, you should review the contract carefully and consult legal counsel during the attorney review period to avoid this potential problem.
6. "Buyer beware" Home Inspections - Although a home is sold "as is", you are typically entitled to inspections under the contract of sale. Your home is often your most costly investment and you should be aware of any potential issues that could effect that investment before closing title. Although a home may appear to be in good condition, it is important to have a trained professional inspect for certain defects. Often times, defects go unnoticed prior to making an offer to purchase a home. Selecting the right professional home inspector can make all the difference. They will provide you with an inspection report, which can give you insight into not only possible defects but what repairs may be necessary in the immediate future. This may impact your budget, which can deter your purchase, or become an issue to negotiate during the home inspection clause of your contract.
7. Select your Attorney wisely - Although you are not required to retain legal counsel to conduct a closing of title in the State of New Jersey, it is highly advisable. Your Realtor or Title agent is not licensed to practice law in the State of New Jersey and therefore, should not be providing you with legal advice. The Contract of Sale is a legal document that should be reviewed by a licensed practicing attorney to insure your rights are protected and that the contract of sale is tailored to meet your needs. Selecting the right attorney is important as the attorney should be providing you legal advice with respect to the contract, inspections, and title during the course of the transaction.
8. Have your financial documents ready - Often times the mortgage loan process requires you to provide copies of tax returns, bank statements, pay stubs, and other vital documents. Having these documents ready to supply your Lender may expedite the loan process. Be proactive. Waiting for your loan officer to request these from you may delay your loan approval. Having them ready to supply immediately will help your loan officer obtain your approval.
9. Closing Costs - You will more than likely be required to bring funds to closing for certain costs associated with your transaction. Loan fees, attorneys fees, title costs, and other miscellaneous fees will likely be required at your closing of title. Be prepared for your closing date. Ask your professionals to provide you with an estimate of these costs so you have the necessary funds ready to close title. These funds typically need to be certified funds such as a bank check or wire transfer.