 Who
does what in a N.J. Real Estate transaction?
The survey and title search is typically ordered by the buyer's attorney. If the closing is to occur on an expedited basis (i.e., less than 45 days after signing the contract), then it may be necessary for Berman, Sauter, Record & Jardim to order the survey and title search prior to finalization of the contract and prior to issuance of the mortgage commitment in order to be prepared to close in a timely manner. A flood search will also be ordered by the firm. If these searches are ordered and, for whatever reason, the closing does not occur, the buyer may be subject to charges for canceled services. Those charges can range from $200.00 to $600.00, depending upon the point at which they are canceled. The buyer is responsible for ordering the home inspections. The buyer is also responsible for pursuing the mortgage commitment. The mortgage application should be submitted shortly after (or before) finalization of the contract. The buyer should advise the lending institution that a copy of the commitment should be forwarded to this firm. The buyer will be expected to comply with conditions of the mortgage commitment. The buyer will be responsible for obtaining casualty (homeowner's) insurance for the property and the insurance must be effective as of the date of closing. As a precondition to establishing a closing date, many mortgage lenders will require proof that the policy is in effect and will also typically require that the first year's premium be paid in advance. The mortgage lender will require that it be named as an insured on the policy. It is helpful to an insurance agent if the agent is provided with a copy of the commitment to assure that the insurance endorsement is properly worded and is in an amount satisfactory to the lender. If you need any assistance concerning the inspections or a mortgage, contact your Berman, Sauter, Record & Jardim, P.C. attorney, who will be able to help you. Use our electronic form to request more information.
Unlike many other states, New Jersey real estate contract closing dates are estimated dates. Typically, the closing is described as being "on or about" or "on or before" a specific date. In the majority of cases closing will occur on or very close to the estimated closing date. But there are circumstances beyond the control of the parties that may delay a closing. For instance, the mortgage commitment may contain a condition that cannot be immediately satisfied; the title report may disclose a matter that requires corrective action; or the inspections may uncover a problem that will take time to resolve. Closing dates in new construction contracts, which are often optimistically stated, are frequently prone to delay. Closings usually will take place at the office of the buyer's attorney, who acts as the "settlement agent" and performs most of the administrative functions in connection with the closing. Use our electronic form to request more information.
Since the buyer's attorney acts as the settlement agent, he or she will collect the mortgage proceeds, the balance of the purchase price and closing costs from the buyer, and will disburse the funds to pay off the existing mortgage lien, recording fees, brokers' commissions, and the sales proceeds to the seller. In order to disburse these funds on the day of closing, the closing attorney must have "immediately available funds." Therefore, the buyer must produce the balance of the purchase price in the form of a certified check, bank check, treasurer's check or wire-transferred funds. The fees imposed by the buyer's mortgage lender are not known until shortly (i.e., one or two days) prior to closing. Hence, the precise amount of the required monies may not be established or be available to the buyer until one or two days before the closing. In most instances, though, if the buyer must obtain funds more than one or two days before, the required amount of money can be estimated with reasonable certainty by a Berman, Sauter, Record & Jardim paralegal and the balance will be returned to the buyer at closing. In addition to the lender's expenses, other closing adjustments include real estate taxes, sewer and/or water charges, and heating oil or propane fuel in the tank. Arrangements should be made to have all utility services turned over to your own account at time of closing to assure no interruption in services. This is usually coordinated by your sales agent. Although final walk-throughs are performed on the day of closing, it may be appropriate to perform the walk-through in advance of the closing day to insure that any issues that may arise can be resolved in advance of the closing; otherwise the parties may feel forced to accept a less than satisfactory resolution. Use our electronic form to request more information.
Most sellers of residential real estate cancel their homeowner's policy upon the sale of their home and purchase a new policy for their new residence. In fact, that is so common, that one might well ask "Why do otherwise?" The reason this might be a concern is because New Jersey courts have imposed a continuing duty on the seller for injuries sustained on a property after the closing of title, as a result of a condition the seller created, maintained or failed to correct during the seller's ownership. For example, liability may result from nothing more than a cracked sidewalk, a ditch in the property or a rotted tree limb that the seller was aware of and that later falls, causing damage. Just the cost to defend such lawsuits can easily reach five figures and higher. If a seller has sold a home and canceled the existing insurance policy, the seller will be left without coverage unless the seller specifically purchases "umbrella" liability coverage that provides coverage for any liability a seller may have, not just the liability relating to a specific piece of property. All sellers of residential real estate are encouraged to discuss this issue with their insurance agent and obtain appropriate coverage. Use our electronic form to request more information. |