Real Estate Law

The purchase or sale of a residential home in New Jersey is a multi-step process that involves a written contract and an eventual transfer of ownership of the real property the other party. Most times, they will involve the following steps:

Offer Acceptance: Congratulations! The seller has agreed to accept what you have offered in exchange for selling you their home. The next step is drafting a real estate sales contract and agreeing on the terms.

Attorney review: The attorney review period is a time when each party to the contract is afforded the right to have the document examined by a licensed attorney. From the date which both parties receive a fully executed contract, the attorneys for the respective parties have a three day window to disapprove of any term and offer additions or amendments to any term. Once the terms are acceptable to both parties, the contract becomes a binding legal contract.

Request for Public Records: Filing an Open Public Records Act (OPRA) request will allow the prospective purchaser to learn of any open or outstanding permits associated with the property. Purchasing a property without a clear picture on the nature and quality of the work could have serious consequences for the purchaser.

Obtaining Financing: Excluding full cash offers, most residential purchases will involve the purchaser contacting a mortgage lender to obtain a mortgage on the subject property. This process usually takes several weeks, so it is in the purchasers best interest to begin the application process sooner rather than later to avoid ending up in breach of the contract.

Appraisal: A home appraisal is a valuation conducted by a property appraiser to determine how much the property is worth. You can often use the appraised value to determine whether you are overpaying or underpaying for the property.

Inspections & Surveys: Unless agreed otherwise, most real estate sales contracts afford the purchaser the right to inspect the property for issues such as structural defects, mold, radon gas, or other faulty systems. Additionally, It is strongly recommended the purchaser spend the extra money to order a survey, as this will provide assurance of the actual boundary lines of your property, so you know what (and what you’re not) buying.

Title Insurance & Searches: Title insurance and searches should be ordered to ensure that there are no defects or competing claims against the land you are purchasing. Generally, the buyer has the right to select the title company of their choice.

Ownership Transfer: Once all contingencies have been cleared, ownership of the property is transferred to the purchaser via a deed. Often times a bargain and sale deed will be prepared by an attorney, which will then be filed and recorded in the local county clerk/recorder’s office. The Deed is the legal document used to transfer rights to the purchaser.