Get legal advice before buying or selling your home and other real estate concerns
Whether you’re buying your first house or selling your residential property, the process can be stressful. You will encounter many questions, from your offer to the asking price and the paperwork. This is why hiring Princeton residential real estate lawyers is essential.
Our legal team at Inderjit K. Sidhu Esq. LLCs are experienced in handling real estate transactions. As seasoned Princeton real estate attorneys, we can help you avoid mistakes when buying or selling a property. Talk to us about your real estate dilemma today by scheduling a free 15-minute consultation now!
Why Do I Need Princeton Residential Real Estate Lawyers?
Transactions in residential real estate are the most prevalent form of legal transaction in the State of New Jersey. Purchasing a home, rental property, or commercial property is likely one of the largest investments you make during your lifetime. With this, choosing the best real estate attorney in town is crucial.
Our Princeton residential attorneys at Inderjit K. Sidhu ESQ. LLC is the best choice for the following reasons:
- We stick with our philosophy. At Inderjit K. Sidhu ESQ. LLC, our philosophy is an informed client is a happy client. We ensure that our clients are updated as our legal team monitors new developments in its practice areas.
- We offer a wide range of real estate legal services. We are adept at negotiating real estate transactions, protecting our client’s rights, and closing the deal.
- We have the experience and knowledge. Our Princeton residential real estate lawyers have extensive knowledge and high-caliber experience with real estate issues, property rights, and other real estate law concerns.
Our New Jersey lawyer is more than happy to help if you need legal assistance. Contact us today!
What are Residential Real Estate Transactions in New Jersey?
Real estate transactions are distinctive in their way. They follow a sequence of events which are described below. The residential real estate transaction phases in New Jersey are:
- Contract Formation
- Due Diligence and Inspections
- Lender Financing
- Title Insurance
- The Closing
Contract Formation Process
A contract is the first step in a real estate transaction. Most contracts in residential real estate in New Jersey begin with a contract drafted by a real estate broker. Almost all house listings in NJ are posted by a real estate broker. Normally, the contract initially signed by the parties is then forwarded to a lawyer for review.
A lawyer represents the buyer, while another represents the real estate vendor. The law in New Jersey allows an attorney for a three-day review period to look into the contract’s terms. During that three-day attorney review, they usually prepare an addendum letter on their client’s behalf, inserting specific provisions. These lawyers then discuss their corresponding letters and negotiate the contract’s final terms. The contract is “out of attorney review” once this process is completed.
Due Diligence and Inspections Requirement
Once the contract has been approved by an attorney, the purchasers usually hire an inspector to inspect the property for any other defects in the structure. The inspector issues a written report assessing the property, which the buyer’s attorney forwards to the seller’s attorney.
Usually, there is a mediation over any repairs that are required. If the repairs are minor, a buyer may agree to credit financially rather than taking actual alterations. When the parties agree on the alterations to be conducted, the seller will perform the agreed-upon repairs.
Most real estate acquisitions are financed by a lender. Various mortgages are available to buyers, ranging from traditional mortgages, where a buyer typically puts down at least 20% of the purchase price, to Federal Housing Administration (FHA) or other less conventional loans, where a buyer puts down a smaller portion of the purchase price.
A usual real estate contract will have a deadline for the buyer to provide a firm mortgage commitment. Once the commitment to the mortgage is secured, the buyer and seller can start preparing for the closing.
Financing the Purchase
The process of obtaining financing begins just after the contract to purchase real estate is signed by the buyer. Most contracts in residential real estate include a mortgage clause, which gives the purchaser a period, usually 45 days, to receive a written commitment from a lender. In most cases, the purchaser may have begun the process earlier by obtaining a pre-qualification from a well-respected lender.
The lender can provide buyers with a “prequel letter” to help them bargain with a real estate seller. After the contract is signed, the purchaser will apply to a lender for a mortgage commitment. Depending on the situation, this process could take a few weeks to 6 weeks or more.
If a lender is involved in the transaction, the lender will insist on and require the purchase of title insurance to insure the property. It is an insurance policy that protects the buyer and lender against flaws in the “title” of the property. This includes defective deeds, property description overlaps, old mortgages that have not been discharged, undischarged liens, and other things that may reduce the property’s value.
Typically, a lender would request that a survey be performed on the property and that a title company issue a title insurance policy insuring the asset as depicted in the survey. The cost of title insurance is a one-time payment due at closing.
Closing is scheduled at the buyer’s attorney’s office after completing the checklist mentioned. If financing or a mortgage is necessary, the buyers must first close on their loan before the closing can take place.
The buyers’ attorney receives the payment from the lender and then issues check to the seller, title insurance carrier, realtors and attorneys involved, the township for the next quarter’s taxes payment, and other expenses listed on the transaction’s Closing Statement. The sellers’ attorney sends the deed of sale and other related documents once the Closing Loan is completed. The deed is recorded, and the transaction is complete when the checks are issued, and the deed is recorded.
What are the Documents Needed in the Home Pre-Sale?
Selling your home will necessitate gathering and storing various forms of paperwork. These are primarily for communication with the buyer and to ensure a smooth transfer. Here are some of the main ones you will need on your pre-sale:
- Information on the various real estate agents you are considering working with
- Original sales contract for your home, including the purchase price
- Documents about your home’s title and ownership, such as a certificate of occupancy, property survey, and compliance certificates with building and zoning codes
- Mortgage and financing paperwork (paying off your mortgage, if any remains, will need to occur as part of the closing)
- You may be required to provide the buyer with tax records such as real estate, school, and other tax information.
- A professional appraisal performed when you purchased your home, as well as any documented changes to the appraisal since that time
- Documents about your homeowners’ insurance
- Reports on any professional inspections performed before listing your home for sale
- Receipts and documentation of improvements you’ve made to your home, such as adding a new bathroom
- If you are a member of a homeowner’s association, you must have all related documents, such as the CC&Rs (see preparing documents for selling an HOA home)
- Anything else about your sale (such as a file on the builder if you are selling a newly built home)
Our trusted Princeton residential lawyers can help you with the final preparation of these documents. Call Inderjit K. Sidhu Esq. LLC as soon as possible.
What Problems May Arise During Real Estate Transactions?
There is more to a real estate transaction than just the exchange of property. Any number of problems can arise in connection with property:
- Tax Liens
- Boundary Line Disputes
- Title Clearance Issues
- Estate Issues
All of these conflicts can pose significant trouble and delays for your transaction. Our Princeton residential real estate lawyers strive to protect our client’s interests and get them to that closing table as quickly and smoothly as possible. Talk to us today!
Call our Princeton Residential Lawyers Today!
Buying a home, rental property, or commercial property is likely one of the most significant investments you will make in your lifetime. A knowledgeable Princeton real estate attorney can assist you in avoiding mistakes when buying or selling a home. We can also represent you in real estate litigation.
Our lawyers at Inderjit K. Sidhu ESQ. LLC will represent your interests in real estate matters ranging from residential home purchases and sales to more complex commercial and business transactions. If you want to discuss a potential sale or purchase of a residential lease or some other issue about residential real estate, call us now!