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Lease Reviews
Buy Sell Agreements
Prenuptial Agreements
Commercial Distribution
Agreements
Employments Agreements
Independent Contractor Agreements
Restrictive Covenants
Sale/Purchase of Business
Business Litigation
Commercial Disputes
Personal Injuries
Slip and Fall
Automobile Accidents
Family
Restrictive Covenants
Estate
Partnership
Agreements
Creation of LLC
Operating Agreements
Wills
Estate Administration
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The
Levine Law Firm LLC.
 0-99 Plaza Rd
Fair Lawn, NJ 07410
Tel: 201-794-1100
Fax:201-794-7470 |
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Should I sign the broker's contract?
There's no harm in signing. If you sign
a broker-prepared buy-sell agreement in
New Jersey, your attorney has 3 days in
which review it and then approve,
disapprove (cancel), or modify it.
What is the contract of sale?
A contract of sale is an agreement for
the purchase and sale of real estate.
The contract is usually prepared by your
real estate broker and is a standard
form contract, which is submitted to
your attorney, for further refining.
What is attorney review?
Following the signing of the initial
contract of sale, the parties have three
business days to have the contract
reviewed by their attorney. During this
time period, your attorney will review
the contract and prepare what is called
a rider or letter addendum to the
contract. The Rider will create
additional provisions to the contract,
both attorneys trying to make the terms
most favorable to their client and
addressing any issues that have not been
already addressed by the initial
contract.
Representing a Buyer, this firm, as your
attorney, would try to extend the
deadlines for your mortgage commitment
and inspection report, as well as giving
you the most flexibility to get out of
the transaction, if your inspection
report is unfavorable or if you are
unable to secure a mortgage.
If you are buying a condominium, co-op
or a townhouse, this firm will put in a
provision requesting copies of important
documents, including the Master Deed,
Bylaws as well as the House Rules of the
Condo Association, in addition to the
financial documents, including a budget,
and/or financial statements, which will
show the financial stability of the
building.
Once the attorneys and their clients
accept each others newly added terms,
the attorneys will sign off on the final
Rider and inform all parties that
attorney review is concluded. All time
periods (for the mortgage contingency
and inspection results) will start from
this date (not the date you signed the
initial contract with your broker).
What is a Closing?
Closing is the time when the purchaser
and seller meet and transfer the title
to the property. The deed, loan
documents and other legally required
documents are signed and all funds are
obtained and then disbursed in exchange
to the keys to the house. During the
closing process, we work closely with
you, the real estate agents, your lender
and the sellers attorney. We will take
care of the title search and will
carefully examine the title abstract to
determine that there are no defects on
your title that might have a negative
impact on your ownership rights to your
property. We explain each document
involved in the settlement process and
review each entry on the settlement
sheet. When the closing is complete, you
own the house.
Buying a Home
Buying a home, condominium, cooperative
or townhouse, or private is a major
transaction as you are probably making
the largest single investment of your
life. As such, buying a home can be a
stressful process. This firm strives to
make the process as smooth as possible
and provide you with answers to your
questions and concerns. The following is
a brief introduction to the home buying
process to help give you a better
understanding of the process.
What is the contract of sale?
A contract of sale is an agreement for
the purchase and sale of real estate.
The contract is usually prepared by your
real estate broker and is a standard
form contract, which is submitted to
your attorney, for further refining.
What is attorney review?
Following the signing of the initial
contract of sale, the parties have three
business days to have the contract
reviewed by their attorney. During this
time period, your attorney will review
the contract and prepare what is called
a rider or letter addendum to the
contract. The Rider will create
additional provisions to the contract,
both attorneys trying to make the terms
most favorable to their client and
addressing any issues that have not been
already addressed by the initial
contract.
Representing a Buyer, this firm, as your
attorney, would try to extend the
deadlines for your mortgage commitment
and inspection report, as well as giving
you the most flexibility to get out of
the transaction, if your inspection
report is unfavorable or if you are
unable to secure a mortgage.
If you are buying a condominium, co-op
or a townhouse, this firm will put in a
provision requesting copies of important
documents, including the Master Deed,
Bylaws as well as the House Rules of the
Condo Association, in addition to the
financial documents, including a budget,
and/or financial statements, which will
show the financial stability of the
building.
Once the attorneys and their clients
accept each others newly added terms,
the attorneys will sign off on the final
Rider and inform all parties that
attorney review is concluded. All time
periods (for the mortgage contingency
and inspection results) will start from
this date (not the date you signed the
initial contract with your broker).
What are my expected closing costs?
There are several things you are
responsible for between attorney review
and closing:
Inspection
A structural home inspection is not
required, however, it is strongly
recommended if you are purchasing a
home. An inspector will provide you with
information about the property and learn
recommended maintenance for your new
home. Depending on the age and condition
of your building, you may choose to get
inspections in the following areas:
termite radon, septic, well, home
heating oil tank, and/or lead paint. The
fees for a structural inspection vary,
but are roughly $400.00 to $600.00 This
is an out of pocket expense that you pay
directly to the inspector. You will work
with your real estate broker and the
seller to coordinate this.
You have a limited time (usually between
10-14 days) to get the inspection done
and submit the results to the Sellers
attorney. You should schedule an
appointment with an inspector
immediately following attorney review.
Any defects will be submitted by your
attorney for the Sellers attorney to
address and repair or provide a credit
at closing. This firm can provide you
with names of a number of licensed home
inspectors.
Title Insurance, Title Searches and
Survey
You will be required to purchase title
insurance for your property, which is an
insurance policy that covers your
ownership interest and the mortgage
interest of your lender. Title insurance
prices are state regulated and this
firm, as your attorney, will order the
insurance in conjunction with the title
searches (which are approximately
$400.00), from a licensed title agency,
which will find any judgments against
the parties, liens against the property,
including mortgages or any unpaid taxes,
encroachments or easements and provide a
copy of the recorded deed and mortgage
for the Seller.
Your mortgage company will generally
require you to have a survey of the
property. A survey is a map of the
property , as if looking at it from
above. It outlines your property lines,
fences, driveway and the house, usually
including a showing of the setback
lines. A survey for a one family house
costs approximately $650.00 and a survey
certificate for condo costs about
$275.00.
Title insurance, title searches and the
survey costs are paid at closing.
Mortgage costs
Mortgage closings costs vary by the
mortgage company. You are advised to
speak to your mortgage broker about
their specific costs/fees. Some
companies collect fees in advance and
others are paid at closing. It is wise
to contact a few mortgage companies to
compare rates. This firm can provide you
with contacts at reputable mortgage
companies at your request. Typical
lenders fees/requirements may include
any or all of the following:
Application Fee, Appraisal Fee,
Commitment Fee, Credit Report, Escrow
for taxes/insurance, Flood
Certification, Prepaid interest, Tax
Service Fee
Insurance
If you are purchasing a one or two
family home (not a condo, co-op, or
townhouse) your mortgage company will
require you to purchase a one year
policy for homeowners insurance and
provide a paid receipt. This must be
paid prior to closing.
Attorneys Fees.
Attorneys fees are paid at closing. Our
fees are usually on a flat fee basis;
however, some transactions may require
an hourly fee arrangement. Please
contact this office directly to find out
the rate for the purchase of your future
home.
Realty Transfer Tax
If you are purchasing a home for greater
than $1,000,000.00, you will be
responsible to pay the State a tax equal
to one (1%) percent of the purchase. By
way of example, if the purchase price
were exactly $1,000,000.00 then the tax
is $10,000.00.
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