Residential Real Estate Closings Attorney
Providing peace of mind for buyers and sellers in real estate transactions
For most New Jersey residents, the family home represents their largest and most complicated investment. The documentation that goes with home sales is complex, and minor errors can cause hardship down the line. That’s what makes the role of the closing attorney so important. The closing attorney must scrutinize all documentation, screening for inconsistencies that might cast doubt on aspects of the sale so that clients can trust the transparency and accuracy of the transaction. John VR. Strong, Jr. in New Brunswick has decades of experience overseeing closings of residential property sales. Whether you are buying a new home or selling your longtime residence, you can trust this veteran real estate attorney to manage every detail with the utmost professionalism.
The residential real estate closing process in New Jersey
In a real estate transaction, the closing is the final meeting where parties sign paperwork to transfer property from the old owner to the new in exchange for the agreed-upon consideration. But there are many steps that lead up to that meeting:
- Purchase agreement — After offer and acceptance, the parties sign a contract, which outlines the terms and conditions of the transaction, such as the purchase price, contingencies and deadlines. The buyer must deposit a specified amount of money into an escrow account to demonstrate good faith, and a date is set for closing.
- Review of Contract — Preparation and review of attorney review letters
- Attorney Review Letter — The buyer’s attorney reviews the contract and prepares a letter to the seller’s attorney detailing necessary changes to the original contract. The seller’s attorney reviews that letter and sends his own letter setting forth changes and/or agreeing to the buyer’s attorney’s review letter.
- Home inspections — One of the major contingencies in a contract is that the house pass various inspections, so the buyer is satisfied the residence is free from major defects.
- Financing — The buyer must get final approval on a mortgage from the lender. As part of this process, the lender typically scrutinizes the buyer’s income, assets, tax returns and other information to evaluate the risk of default.
- Insurance — With the transaction, the buyer must purchase homeowner and title insurance.
- Closing — The lender provides a Closing Disclosure packet detailing the final loan terms and closing costs. The buyer will receive a list of documents to bring to the closing, such as a photo ID or passport and a certified check or proof of a wire transfer to pay closing costs.
Under New Jersey Law, a title insurance company for the buyer prepares the following documents:
- The property deed
- Affidavit of title
- Settlement statement
- Closing disclosure
- 1099-S tax form
The closing takes place usually at the office of the buyer’s title insurance company and it disburses all closing costs and fees, including any realtor commission fees and attorney fees, at the closing.
Closing costs in New Jersey home sales
In New Jersey, real estate buyers and the sellers are each responsible for certain closing costs. Buyer’s costs generally include:
- Home inspections
- Title search
- Title insurance
- Credit report
- Appraisal fee
- Loan origination fees
- Survey fee
- Settlement fee
- Documentation preparation fee
- Mortgage lender fees
- Tax reimbursements to seller
- Attorney’s Fee
The seller will usually pay:
- Real estate agent commissions
- NJ realty transfer fee
- Recording fees
- Settlement fee
- Deed preparation
- Attorney fee
Following a review of the relevant facts, we can estimate the costs you will face at closing.
Post-closing procedures in New Jersey
After the buyer has gotten the keys, the Title Insurance Company will:
- Record the deed and
- Disburse funds to the proper recipients
The role of an attorney is crucial to the success of the home purchase or sale. Be sure to choose a lawyer with ample experience and a dedication to details.
Contact an experienced New Jersey real estate transaction attorney
John VR. Strong, Jr. in New Brunswick handles residential real estate closings throughout New Jersey. To schedule a free consultation, call 732-249-0550 or contact our office online. Se habla español.