Upon contemplation of purchasing a home in New Jersey
, you may be wondering if you should work with a real estate attorney as well as
a real estate agent during the process. To some people this may seem redundant, but there are several very good reasons to consider hiring a NJ real estate lawyer.
In New Jersey, state law gives home buyers and sellers a three day "attorney review period." This three day period begins when a real estate contract is signed. The contract is not considered legally binding until the three day attorney review period has ended.
Many home buyers ignore the attorney review period and ask, "What can my attorney do that my real estate broker
can't do?" The answers follow.
Review legal contracts
During the attorney review period, your NJ real estate attorney will read through the entirety of your real estate contract, looking for any red flags and addressing crucial elements that may be missing. Having your real estate attorney review your contract during the attorney review period will increase your chances of a successful closing without any glitches and without surprises several months from now. Real estate attorneys have been specifically trained in the area of real estate contract law, and they know precisely what to look for, whereas real estate brokers are generally most interested in closing the deal.
Because real estate agents frequently use generic forms that are "one size fits all," many special circumstances may not be addressed in your purchase agreement. An attorney will notice when crucial details are missing from your sales agreement, and they can add contingencies
where they are needed.
Perform a title search
New Jersey real estate attorneys will perform an action called a title search when property is being sold from one owner to another. A title search must be completed in order to determine if a property is free of any liens, judgments, or encumbrances. An attorney can perform a title search much faster and cheaper because of his networking connections and close relationships with title companies in the area.
Often, real estate deeds must be filed with the county and state government. This is more true when commercial
property is involved. In these cases, your real estate lawyer will easily be able to assist you with obtaining your tax identification number, establishing your business entity, securing a business license and navigating all of the state regulations surrounding any construction that you may wish to have completed on your new commercial (or residential) property.
Some people choose to move forward with a home purchase without
the assistance of a real estate attorney in New Jersey. While this is within your legal rights, it is well worth the extra money and relatively short investment of time to work closely with a lawyer near you who specializes in real estate contract law.
In doing so, you will protect yourself from any problems that may arise during the property transfer process. Some glitches that may occur include: improperly filed deeds, tax issues, undiscovered liens, home inspection challenges/property defects, missing or improperly filed documentation/permits, and failure to properly register commercial property. Your attorney can also attend the closing
with you to ensure that everything goes as planned.
Will working with an attorney cost you more money than if you didn't hire one while you were purchasing a new home or location for your business? YES.
However, the potential money a certified NJ real estate attorney
you in the long run is indeterminate and can oftentimes be exponential when compared with your initial investment in retaining your attorney's services. The smart move is to invest in a secure transaction by making sure that your real estate contract is legally binding, in your favor, without errors, and free of encumbrances.
Image: "Sherwood Country Club" by Sherwood CC - licensed under CC by 2.0