NJ Real Estate Lawyer, New Jersey Attorney

Providing legal services for over 25 years

1. What will be my expenses?
2. What is title insurance?
3. What is the attorney review period?
4. What is a HUD-1 settlement statement?
5. What is the realty transfer fee?
6. What is an REO?

1. What will be my expenses?
A.If you are a buyer, the normal costs include, mortgage related costs like discount points, interest on the loan for the remainder of the month, and escrow for taxes and homeowner’s insurance. Regular closing costs include title insurance, survey, filing fees and legal fee. If you are a seller, the larger costs include the real estate commission, mortgage pay-off, realty transfer fee.

2. What is title insurance?
A. The most important factor in a real estate closing is to provide the buyer with clear title to the property. In order to obtain clear title, a buyer hires a title insurance company to conduct a search of public records to determine the ownership history of the property and to determine whether there are any mortgages or other types of liens and defects in the title of the property. The title insurance company prepares a report before the closing takes place detailing the history of the title and liens against the property. The buyer’s attorney is responsible to review the report and, with the cooperation of the seller, remove any problems that would prevent the seller from transferring clear title to the buyer. After the closing, the title insurance company will issue an insurance policy that protects the buyer against any loss or damage that results from recorded defects, liens, or encumbrances upon the title that were missed during the search and against title defects that are not shown in public records such as forgeries, fraudulent transactions, errors in the record, that may affect title to the property. If a claim is made against the buyer’s title to the property, the title insurance company will defend the title to the property and generally bear the cost of resolving any claims against the property. The title insurance remains in effect throughout the buyer’s ownership of the property. The cost of the insurance is paid one time, at closing.

3. Historically only lawyers had the capability of preparing contracts for the purchase of real estate in New Jersey. The law was changed to allow real estate agents to prepare contracts of sale for residential properties. However, to protect both parties, all real estate contracts prepared by a realtor must contain a provision that allows the buyer and seller to have the contract reviewed by an attorney. If an attorney is consulted, the review of the contract must be completed within a 3 day period, unless the review period is extended by mutual consent. The 3 day period begins on the day of delivery of a fully signed contract to the buyer and seller. Weekends and legal holidays are not counted. The attorney can disapprove the contract entirely without specifying a reason or can disapprove a contract and propose changes that would make the contract acceptable to the attorney’s client. Both parties would have to agree to any changes to the contract. If the changes are accepted by the parties, the contract will become legally binding. In the event, a contract is not disapproved or modified within the 3 day period or any extension consented to, the contract will become legally binding.

4. What is a HUD-1 settlement statement?
A. It is a document prepared by the closing agent for use at the closing of title itemizing charges imposed upon the buyer and seller in a real estate transaction. It is also known as a Respa Statement. By law it is to be used in all transactions which involve federally related mortgage loans. However, as a practical matter, it is used as a settlement form in all residential real estate closings.

5. What is the realty transfer fee?
A. The State of New Jersey imposes a fee upon the recording of all deeds transferring title to real property in the State of New Jersey. The fee is required to be paid at the time of the recording of the deed and is paid by the seller. The fee is calculated on a sliding scale depending on the price of the property. The fee can be substantial amounting to thousands of dollars depending on the purchase price of the property. The fee is deducted from the seller’s proceeds at closing and is sent to the County register along with the deed for filing. A reduced realty transfer fee is available to seniors, blind persons and disabled persons, in connection of the sale of a one or two-family owner occupied residence and on the sale of low and middle income housing.

6. What is an REO?
A. REO is an acronym for "real estate owned" and is used in connection with bank owned properties that have been foreclosed and are being sold by the bank.

Hire an Experienced Lawyer
Contact Joseph S. De Amorin,Esq.

Accepting Credit Cards

Representing clients throughout New Jersey, including Newark, Belleville, Nutley, Bloomfield, Montclair, The Orange’s, Jersey City, Hoboken, Kearny, Harrison, North Arlington, Lyndhurst, Rutherford, Elizabeth, Union, Hillside, Hackensack, Clifton, Paterson, Woodbridge, Edison, Toms River, Essex County, Bergen County, Hudson County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Somerset County, and Union County.

Home

Contact Us

Real Estate Closings

Short Sales/Foreclosures

Closing Procedures

Drunk Driving

Other Practice Areas

Real Estate Tax Appeals

Municipal Court

Landlord/Tenant

Personal Injury

Estate Planning

Consumer Fraud

Business, Corporations

Debt Collection

Real Estate Litigation

Land Use

Attorney Profile

Portugues

Tribunal Municipal

Acidentes

Senhorio/Inquilino

Compra e Venda de Imoveis

Testamentos/Inventorios

Negocios e Corporacoes

O Advogado

Links

Joseph S. De Amorin, Esq.

Free Initial Consultation ........ 973-344-7717