The law office of Stephen L. Klein represents Sellers and Buyers in residential real estate transactions.
In New Jersey, most real estate cases start because the Seller and Buyer sign a contract prepared by a realtor. In most cases, the contract is disapproved by either or both attorneys involved in the transaction. The disapproval is required to be done within 3 business days after the broker’s contract is signed or otherwise it may be binding.
The most important part of real estate transaction is the preparation of the Contract. It is the contract which will control the legal rights of the parties during the transaction and if there is any litigation. There are many terms and provisions to be indicated in the contract and the Buyer is the party which needs the greatest protection when a contract is prepared. Once the contract is approved by the attorneys, the Buyer and the Seller sign the contract as modified and attorney review is completed.
The second step is for the Buyer to make the initial deposit normally to Seller’s attorney who holds the monies in the Seller’s trust account until closing or returns the deposit if the contract is properly cancelled.
The third step is for the Buyer to conduct the inspections for the property. They generally include the structural, termite, and radon inspections. It is necessary for the parties to resolve any issues regarding the inspections. In the event the parties cannot agree upon any inspection issues, then either party can normally cancel the contract and the deposit monies are returned to the Buyer. Once the inspection issues are resolved, the Buyer proceeds further.
The fourth step is for the Buyer to obtain a mortgage commitment as usually the contract provides the transaction is contingent upon the Buyer obtaining a mortgage. In the event the Buyer is unable to obtain the commitment within the agreed time in the contract or any extension, either party can normally cancel the contract.
The fifth step is for the Buyer to conduct a title search and determine the title is marketable and insurable.
The sixth and final step is for the parties to schedule a closing. The parties agree upon a settlement statement indicating the amount due the Seller and the Seller delivers the Deed and other required documents to conclude the closing of the title. Subsequently, the Buyer receives a Title policy.