residential closing – Page 2

Do I REALLY Need a Survey?

Posted by dbergmann1on June 28, 2019in Blog PostsLeave a comment

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Raise your hand if you are an overwhelmed first-time home buyer and your real estate professional (lawyer, title agent or Realtor) asks – “do you want a survey?”

Well, do you?

The survey question comes up when ordering title but if you understand the significance in advance, you can make an informed decision ahead of time, rather than in the mad rush of quick decisions you must make following a signed contract. Do you really NEED to spend another $500, or so? Well you might get lucky and get one for free- after all some townships in New Jersey require a survey before a seller can obtain a Certification of Occupancy. (Of course everything in real estate is negotiable so if you are in one of those townships, buyers and sellers sometimes agree to split or transfer the cost.)

But if you don’t need one for a CO, why spend the extra money? Well without a survey endorsement on your title policy any and all disputes stemming from property line issues will not be covered. This means if you later find out your neighbor’s driveway is actually on your property, you will have a dispute, without title insurance that you will need to resolve in some fashion before you can sell your property. A dispute that would be resolved out of your pocket.

If your plans, post-closing, include adding a fence, deck, pool or other exterior features, many Townships require submission of an updated survey before they will issue a permit. So why not get it prior to settlement and be sure any disputes are resolved BEFORE you buy, your title insurance will cover you, and make your life easier when considering any changes down the road?

So, the next time you are in the market to buy or sell, consider the importance of a survey in advance and save yourself from making a snap or uninformed decision in the excitement and rush of a new deal.

The Home Inspection Period: The Seller’s Perspective

Posted by dbergmann1on June 20, 2019June 20, 2019in Blog PostsLeave a comment

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It’s natural to feel a sense of relief when you finally sign a contract of sale on your property and prepare to hand over the keys. However, don’t assume the process is over just because you have a signed contract. The home inspection period may be for the buyer’s information and use, but you need to be ready to review results, respond to requests and negotiate repairs. Here are five things to keep in mind:

Be flexible. Just like you had to drop everything for every last-minute showing you need to be ready to give the buyers access to the property for their inspections.
Try not to take the inspections personally. Many if the sellers we work with here at firm struggle while reviewing home inspection results. When your home of however many years has been evaluated by a third party it can be hard to separate your emotions from the reports. An inspector may say your chimney is a hazard, but you have been using it for years! There can’t be mold in the bedrooms- your children slept there! Take a step back and remember the buyers don’t know your house and are not trying to insult you. They just want to make sure the home they are buying is safe and ready for them.
Rules change. Many homeowners who have been in the same property for a long time are surprised by changes to the township codes or requirements. Unfortunately, just because something has worked well for 20 years does not mean you may not have to make some changes. Consult with your attorney to find out what you need to do to fulfill your obligations to the new buyers.
While there are some small repairs sellers are allowed to make themselves, the standard New Jersey contract requires any repairs (like electrical or HVAC) requiring a professionally licensed contractors be completed accordingly. You also need to be sure repairs are properly permitted with the township to avoid any last minute complication.
Keep you receipts! Once you have negotiated and agreed to inspections, make sure you keep all receipts to show the work was completed and completed by the proper professionals.

One final thought on the home inspection period: if a deal is going to fall apart, it is most likely to fall apart in these 14 days. With that understanding you should approach the inspection period with the same attitude as listing your house: the more you know, the better off you will be. A real estate attorney can help you negotiate your legal rights and responsibilities and help you clear this final hurdle so you can move on with confidence and only fond memories of your former home.

My Realtor is Acting as a Dual Agent – What Does That Mean and Why Should I Care?

Posted by calgdasilvaon October 17, 2017October 17, 2017in Blog PostsLeave a comment

If you are in the hunt for a house, or likewise selling your own, the topic of dual agency will (or should) come up for discussion with your agent. Most people give consent for their agent to act as a dual agent if the opportunity arises, but do you really know what that consent means?

Under New Jersey law a disclosed dual agent works for both the Buyer and Seller. To work as a dual agent, a brokerage firm must first obtain the informed written consent of their client. It is not necessary that the agent representing both Buyer and Seller be the same person, rather dual agency runs to the brokerage firm. This means if your agent is with one of the handful of large brokerage firms in the area, it is more likely that your transaction will be one in which dual agency applies.

The agent affiliated with a brokerage working as a disclosed dual agent must carefully explain to each party that, in addition to working as their agent, the brokerage firm will also work as the agent for the other party. The agent must also explain what effect working as a disclosed dual agent will have on the fiduciary duties their brokerage firm owes to both the Buyer and Seller.

Dual agency gets tricky in a transaction when the agent is aware of confidential information that would benefit one party and negatively impact the other. A brokerage firm must have the express written permission prior to disclosing confidential information of one client, to the other.

Examples of confidential information includes the highest price a Buyer can afford to pay and the lowest price a Seller will accept. It also includes either party’s motivation to buy or sell. Remember, a brokerage firm acting as a disclosed dual agent will not be able to place one party’s interests ahead of those of the other party and cannot advise or counsel either party on how to gain an advantage at the expense of the other party because of such confidential information.

So why should you care? Well, it’s not likely you’ll be able to avoid a dual agency relationship, and you should not necessarily try to do so. If your agent is a dual agent, it means perhaps it was internal advertising that brought a Buyer to you for your home; but, it does mean you should strongly consider being represented by an attorney in a dual agency transaction. It is the only way to ensure you have an advocate protecting your interests up to and at the time of settlement.

Questions? Feel free to give us a call.