Buying a house is one of the biggest joys of life that gives a sense of achievement for those lucky to experience it. Moreover, it is a huge responsibility that if one chooses to undertake, leads to significant lifestyle changes. Due to these reasons, it is recommended that you get sound legal advice before embarking on such a project. An attorney will help you avoid make costly mistakes by providing the necessary guidance on what you need to know about New Jersey laws before purchasing your dream home.
The Attorney Review Process
New Jersey is an attorney review state meaning that real estate lawyers are needed to take part in the acquisition of real estate property for the transaction to be successfully completed. The attorney review period commences when an offer on the property is made and lasts for about 72 hours. During this period, the legal representatives of both parties – buyers and sellers – meet to discuss the terms of the sales contracts. This involves the optional change of terms of the contract by either the buyer or the seller. Worth noting is that a during the attorney review period, the buyer or seller is allowed to terminate the process if they consider the terms undesirable without having to incur a penalty.
Deposit of Funds
Once in agreement with the terms of the contract, the buyer is then supposed to pay the seller a deposit to showcase good-faith. This is done through the seller’s attorney or an entrusted broker. The remainder of the payment is paid as per the terms of the agreement.
Disclosures
The laws of New Jersey do not require sellers to disclose certain information. However, courts have stepped in to safeguard the interests of the buyers by obliging sellers to disclose hidden defects that they are aware of to the buyer. In case the seller fails to disclose the defects of the house to the buyer, the buyer can sue the seller and get rightfully compensated.
Inspections
Before buying a house, you should consider various inspections to assess the condition of the house. This is much more important if there are huge amounts of funds involved in buying the property or you are being financed by a mortgage lender. The four most common inspections you can ask for include:
- Radon inspection
- Termite inspection
- Lead paint inspection
- Asbestos inspection
Legal Documentation
The seller is required to provide certain certifications to the buyer for verification. Some of these legal documents include:
- Certificate of occupancy
- Flood search
- Septic certification
- Well certification in case of any buried wells in the home’s compound
- Buried oil tank certification
Mortgaging
The mortgaging process occurs concurrently with the other transactions of buying the house. You first submit the mortgage application letters to your lenders, who will then give a good faith estimate of the closing costs within three days. You will be required to provide financial disclosures and once you are approved, a loan commitment letter will be issued. The final hurdle is ensuring that the loan appraisal offered by the lender matches the purchase price of the property. The marked price can be adjusted to equal the loan appraisal to avoid the declination of the mortgage. Lastly you will need to acquire homeowner’s insurance for the house to complete the process of buying a house.
The Closing Process
During the closing, your attorney needs to ensure that the title of the house includes no encumbrances by conducting a title search. Once this is cleared, the closing is scheduled, that is, the title of the home and its insurance are changed to your name and the final cash amount calculated. You are allowed to conduct a final walkthrough before the closing and thereafter, sign paperwork to formalize the purchase before your lawyer records the transaction and title deed for you.
A Realtor You Can Trust!
You can count on NJLux to safeguard your interests during the acquisition of your property. Make the smart move and contact us now to get started on your house purchase today!
