Buying a home at the Jersey Shore, What you need to know about Offer & Acceptance and Attorney Review.
You found your real estate agent, have your mortgage in place, selected your new home and have and have a contract. Once all parties (the buyer, the seller and the witnesses) sign the Contract to Purchase you have a fully executed contract.
It is at this point you’ll either hire an attorney, or you and your real agent will go it alone and use only a title company. In north Jersey an attorney is almost always used in a real estate closing. In southern Ocean County attorneys are sometimes used, and to the south attorneys are rarely used.
Because the purchase of a home is probably the largest expenditure you’ll ever make, it’s worth it to get legal advice. For the most part, attorneys in southern Ocean County charge a flat fee for a real estate closing, usually not exceeding $1,000. Seems a small price to have one more advocate!
During the attorney review period, other offers to purchase the property can still be accepted. REALTORS® who might want to show their clients the property will be told there is an offer and acceptance pending. The home will still be listed as 'Active' on the Multiple listing service until the Attorney Review period is complete.
During that review period the attorney will go over your contract and negotiate any changes he or she may find to be in your best interest. New Jersey requires a minimum 3 day attorney review period, which can be cut short or extended if an attorney is used.
You, the buyer, should raise any questions you might have about the contract at this time. Whether it's the time frame for your mortgage commitment and inspections or additional contractual provisions you might have requested, bring these issues up now!
Once attorney review is concluded, you and your REALTOR® must ensure that all of the conditions in the contract are met, keeping your attorney in the loop.
If any bumps in the road on the way to the closing table crop up, your attorney will help smooth the way. Your attorney will order the necessary title work, survey and title insurance. He or she will also make sure the seller has met his or her contractual obligations and provided the documentation required by the contract (well certification, certificate of occupancy, etc). The attorney will take care of registering the transaction at the county level. The attorney’s trust account will be used for deposits and wire transfers.
If you choose to use only a title company, the first thing you the home buyer need to understand is that neither the Buyer’s Agent (REALTOR®) or the title company can give legal advice. Only an attorney can do that.
Using a title company means you and your buyer’s agent (REALTOR®) will be responsible to negotiate any issues arising from the home inspection or other problems that might arise. Deposit monies and wire transfers called for in the contract will be held in the Title Company’s Trust account.
If an attorney is used, the closing will usually take place at the office of the buyer’s attorney. If an attorney is not used, the closing will usually take place at the title company.
The decision to use an attorney or a title company is an important one. Speak to friends, family and your REALTOR® when making the decision to use an attorney or a title company only.
This is the 5th report in a 6 part series on buying a home at the Jersey Shore.
New Jersey Real Estate Agency Relationships
Lenders and Loans
Homes and Communities
The Contract - Contractual Provisions
Offer and Acceptance - Attorney Review
Closing
If you need an Accredited Buyer's Representative (ABR) at the Jersey Shore, give me a call!
Keller Williams Realty – Atlantic Shore
Laura Giannotta
609-384-6121
Laura@JerseyShoreViews.com
GET YOUR OWN JERSEY SHORE VIEWS!
(Search homes for sale at the NJ Shore)
;)
;)
This is the slightly delayed 5th installment!