Lawyers in New Jersey & Pennsylvania
Princeton, New Jersey: 1.609.452.8411
Hamilton, New Jersey: 1.609.585.1300
Newtown, Pennsylvania: 1.267.352.3427
Frequently Asked Questions - Residential Real Estate
- What is a closing?
- Do you need an attorney for your closing?
- What is the Home Inspection Contingency?
- What is the Mortgage Contingency and Mortgage Commitment?
- How can I pay for the amount due at closing?
- What is a House Sale Contingency?
- How long do I have to make changes to or to cancel the contract?
- What is the Private Well Testing Act?
- How will I know how much is due at closing?
- What is Title Insurance?
- About Buying Residential Real Estate
- About Selling Residential Real Estate
What is a Closing?
The closing is the final transfer of the house to the buyer. It occurs after both the seller and the buyer have met all the terms of the contract and the deed is recorded. Closing also refers to the time when the transfer will occur.
Do you need an attorney for your closing?
Yes. Before you sign an agreement of sale, you might consider asking an attorney to look it over and tell you if it protects your interests. If you have already signed your agreement of sale, you might still consider having an attorney review it. An attorney will also help you prepare for the settlement.
How long do I have to make changes to or to cancel the contract?
In New Jersey, real estate contracts written by a realtor include a period of time lasting three (3) days called the Attorney Review Period. During the Attorney Review Period a Buyer or Seller may cancel the contract of sale. In practice, during the attorney review period, the attorneys for the Buyer and Seller generally negotiate the terms of the contract.
What is the Home Inspection Contingency?
The Home Inspection Contingency generally provides that a Buyer can have a home inspector inspect the house and conduct inspections for termites and radon gas. Contracts typically require that the Buyer pay the cost of any inspections. If a home or pest infestation inspector detects damages to the home, the Buyer may ask the Seller to perform the appropriate repairs. If the Seller elects not to perform the requested repairs, the Buyer may cancel the contract. While the Seller is not required to make the requested repairs, if the Seller refuses the Buyer is left with the choice to buy the property 'as is' or to cancel the contract.
What is the Private Well Testing Act?
The Private Well Testing Act applies only to homes serviced by a private well or private water source. If a home is serviced by a private well or private water source, this Act requires that any contract of sale must be conditioned upon water testing by a certified laboratory. As a condition of sale, both the Buyer and the Seller must sign a certification that the water has been tested and results received. This Act does not specify whether the Buyer or the Seller is responsible for the cost of water testing.
What is a House Sale Contingency?
A House Sale Contingency applies in cases when a Buyer may have to sell a home before they can purchase a new one. If this is the case, the Buyer may request that the contract include a Home Sale Contingency, which must be addressed before the period of attorney review ends. If a Buyer proceeds without a Home Sale Contingency, they are legally required to buy the new house, even if they do not sell their existing home or cannot get a mortgage loan without having first sold their present home.
What is the Mortgage Contingency and Mortgage Commitment?
Contracts of sale usually state that the contract is subject to the Buyer's ability to obtain a mortgage commitment by a certain date. The contract will generally provide a deadline by which one must apply for a mortgage and a deadline by which a mortgage commitment must be issued. A mortgage commitment is a letter from the lender promising to make the loan.
How will I know how much is due at closing?
Generally speaking, you will not know the exact amount due at closing until the actual day of closing. Most costs are mortgage-related and the final figures are usually available from the mortgage company on the actual closing date.
How can I pay for the amount due at closing?
All funds brought to the closing must be in cash, cashier's check, money order, or certified check. The New Jersey Court's rules and statutes do not permit closing agents to accept personal checks or any other checks not designated 'cashier's' or 'certified.'
What is Title Insurance?
A title insurance policy assures that the transfer of ownership is completed, that your rights and interests in a property are as you expect them to be, and that you receive protection from future claims against the property you are purchasing. It is the most effective, most accepted, and least expensive way to protect your home ownership rights. Before your real estate transaction closes, the title company performs an extensive search of all recorded property. These records are then examined by experienced title officers who are trained to determine just how any recorded document pertaining to the subject property may affect the current status of ownership. Protection against any future flaws and claims is also provided by the title insurance policy that is issued after your transaction is complete. There are no renewal premiums or expiration date unless the property is refinanced or the title is passed to another party. Title insurance fees are based on the sale price of the home and are regulated by the Department of Banking and Insurance.
