Contract
Signing
The realtor is telling us to sign the Contract before it is reviewed by an
attorney. Is this proper?
If this is a deal brought about by a realtor (as opposed to a
For Sale By Owner), then it is okay for you to sign the Contract first, since that is the way that an offer is made in New
Jersey. However, you must make sure that the fully signed Contract is immediately delivered or faxed to your
attorney. Remember, attorney review still runs, whether or not the Contract has
been delivered to your attorney.
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Attorney
Review
I signed the Contract during the weekend, what should I do?
The attorney review period will not commence until the next business day, so it is perfectly
fine to fax the Contract to your attorney over the weekend, or first thing Monday morning.
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Inspections
Who arranges for the home inspections and what do we do with the
results?
You are responsible for arranging for the home
inspections. Often, the realtors will assist you in locating an inspector and scheduling the inspections. Most contracts provide that the
inspections must be done within 10-14 days following completion of attorney review. You are
responsible for making sure that the inspections are performed and that we receive a copy of the
inspection report promptly. You must then contact us to discuss any problems with the
inspections so that a letter can be sent to the other attorney regarding all
inspection issues within the allotted time frame.
What inspections should be ordered?
You should order a general structural home inspection, a radon inspection, and a wood boring
insect inspection.
Except for the infestation inspection, most lenders do not require
inspections. However, most lenders will require an “Infestation Certificate” showing that there is
no visible evidence of infestation in the home. You must provide this certificate to the lender
before they will clear your file for closing.
Other inspections that you should consider, are inspections that
pertain to asbestos, mold, stucco or overhead electrical wires.
We also strongly suggest that you order an underground oil tank sweep, to determine if there are underground oil tanks on the property. Often, in the contract, the sellers represent that there are no underground oil tanks on the property, when in fact there is a tank that the seller is not aware of.
The inspections are for your protection, not the lender. Remember, once you close, the home is
yours, and the Seller does not have responsibility with regard to the condition of the home
following the closing.
What do I do if there is a well and/or
septic system on the property?
If there's a septic system on the property you should have it
inspected. The buyer pays for this inspection. There are a few
different types of septic inspections available. You should discuss
the various available tests with your home inspector.
If there's a well on the property, the parties will have to comply
with the recently enacted Private Well Testing Act, N.J.S.A. 58:
12a-26 to 37. The law requires
that certain tests be performed but it does not state which party
pays for those tests. Typically, however the seller pays for the cost of the well testing. The tests currently take a long time to complete, so they should be ordered as soon as the contract is signed. The test results are valid for one year from sampling, except for coliform results which are valid for six months from sampling. At closing both parties are required to sign a certificate
reflecting that they have both received and reviewed the well
test results.
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Title Search
Who orders the title search and what is title?
Our law firm will order the title search and the survey as soon as attorney review is complete. It
takes approximately two weeks for the title search to be completed. When title is received, it is
reviewed by our office for defects, and then submitted to your lender. Your lender needs to
approve the title before they will clear you to close. Once you close, you will have insured title to
the property even though the actual title insurance policy will not be issued for many months
after the closing.
Title is ordered from an independent title company, and we charge you the amount that is
charged to us by the title company. Title insurance is regulated by law, so that the cost of title
insurance
does not change from company to company.
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Survey
Who orders the survey and why do we need a survey?
The survey is a like a map that shows the placement of
the dwelling relative to the perimeter of the property lines.
Our law firm will order the survey together with the title search once attorney review is complete.
Almost all lenders require that a survey be drawn and submitted to them for approval, prior to
closing. In some cases the lender will accept an existing survey if it is not too old and if the
Seller can give an Affidavit saying that there have been no changes to the property since the
date of the survey. If an existing survey is available, and you wish to rely upon it, you must let us know so that we do not order
a new survey for you.
Appraisal
The appraisal is often confused with the survey of the Property. The appraisal is ordered by
the lender and sets forth the market value of the property.
Generally the buyer is charged a fee by the lender for the
appraisal. The appraisal is not provided to us in advance,
and usually is not available at the closing. Most lenders require
that you send them a letter within 90 days after the closing in order
to receive a copy of the written appraisal.
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Closing
Concerns
What do I need to bring to the closing?
At the closing you will need to bring a certified check, bank check, or cashier's check.
Personal checks cannot be used at the closing. You
will be provided with the exact amount of the check as soon as the numbers are available to us. The check should be payable as follows: "Amy Alkoff Chasin Attorney Trust Account".
You may also wire transfer the funds into our
attorney trust account. If you would like to wire transfer
your funds, please contact our office and we will provide you with wiring instructions. All wires
must be placed at least one day prior to closing to ensure receipt on the day of closing.
In addition, you should bring proof of
homeowner's insurance (declaration page and one year
paid receipt). It is also a good idea to bring a few personal checks in the unlikely event minor
adjustments need to made between the parties at closing.
If you are married, bring your spouse, or if you purchased the
home with a partner, you must both be present at the closing.
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Closing
Who will be at the closing and how long will it take?
The closing will be attended by you and your
spouse or partner, and you will be represented
by an attorney from the law firm of Amy Alkoff Chasin, Esq. Usually a representative of the
lender does not attend the closing but sends all documentation by overnight delivery or email. The other
party, represented by their attorney, will also be present at the
closing. However, it is not unusual
for a Seller not to attend in person, but to pre-sign all closing documents and to send an
attorney as their legal representative. Often, the realtors will also attend the closing.
A
closing usually takes approximately 1 to 2 hours.
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Closing Location
Where will the closing be held?
It is custom and practice in New Jersey, and most Contracts provide, that the closing will
occur at the office of the Buyer's attorney. If you are buying new construction, the closing will
most likely occur at the office of the builder's attorney.
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