Can a NJ Seller be Sued for Undisclosed Defects in the Home?

caveat emptor

When selling your home in New Jersey, “Caveat Emptor” (Buyer Beware) is the main tenet applied. The seller also has an obligation under common law to properly represent the property. If the seller fails to honestly represent the home for sale, they open themselves up to the probability of legal actions. Because we know this is an area of NJ real estate law that can easily be misinterpreted, Veitengruber Law always works hard to ensure that our clients understand their responsibility as a New Jersey real estate buyer or seller.

New Jersey courts have ruled in favor of misled buyers.

While the law is not specific, the courts have heard numerous lawsuits and ruled in favor of buyers when they have been blatantly misled by the seller. In New Jersey there is an “implied warranty of habitability.” This means that the seller is expected to disclose anything that can affect habitability of the home, and includes things like: drainage problems, hidden mold, roof leaks, poorly insulated walls and windows. Was the house ever tested for Radon? Hiding these types of things from potential buyers could bring about a lawsuit after the sale.

NJ real estate contract review is crucial!

There are good reasons to use both a real estate agent and a NJ real estate law firm like us when buying a house. Even the most basic real estate contract includes a laundry list of items that any buyer would expect to be included or corrected before they agree to purchase a property. All improvements and construction should be valid and up to code. This will ensure a Certificate of Occupancy (CO) can be obtained from the local municipality. You cannot move into a house without a Certificate of Occupancy.

KEY TAKEAWAY: Buyers should be sure that qualifying for a CO is written into their real estate contract, and every contract should be thoroughly reviewed by a real estate attorney. At Veitengruber Law, we work closely with many home inspectors to ensure that a full property inspection is completed before our clients sign any paperwork.

Undocumented improvements can lead to problems

Sometimes homeowners make improvements without securing the proper permits and inspections. This potentially means that if the situation comes to light before, during, or after the sale of the home, the municipality can levy fines and charge back taxes. Who is financially responsible for these fees depends  upon when the situation is discovered.

A house with a bad reputation?

There is no official requirement to disclose things such as a tragic event that occurred in the home, like a crime, murder, or death of natural causes. While sellers don’t have to offer up this information, they do have to respond truthfully if asked if an event of this nature has occurred in the home or on the property. If a seller blatantly misrepresents what has taken place in the home, the buyer can sue for relief.

As the buyer, you are spending a great deal of your money for the house of your dreams. You will likely spend many years living in the home, and you may even raise a family there. BECAUSE there are no solid laws requiring the seller to disclose the home’s “past,” it’s important that you do your due diligence. Research all available information and secure your situation with the expert representation of Veitengruber Law.

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Should You Buy a Fixer-Upper?

fixer upperWith the success of popular HGTV shows like Fixer Upper and the prominence of DIY house projects, purchasing a fixer-upper is a common dream for some potential home buyers. Fixer-upper properties are often lower-priced while offering the opportunity to greatly increase the value of the home far beyond what the buyer paid for it. At the same time, fixer-upper properties can sometimes be more work than people think they will be. The final product may not be worth the time, effort, and money it took to get there. So how can you tell if buying a fixer upper is the right move for you?

A lot of factors go into determining if the fixer-upper you are looking for is a good investment. Fixer-uppers can offer ample opportunity for creativity, personalization, and savings. But they can also come with costly renovations, increased risk, and a monopoly on your time. Ultimately, whether or not you should buy a fixer-upper comes down to you and your unique circumstances as a home buyer. Here are some ways to decide if you have what it takes to buy a fixer-upper:

1. Are You Ready For the Work?

Doing all the work needed to bring your vision for a fixer-upper to life is time consuming and stressful. It is a huge undertaking even for the savviest DIY enthusiast. There is a reason many home buyers will spend the extra money for a newly renovated and updated home. The price tag of a fixer-upper might not seem worth it after you calculate the cost, time, and labor you will have to put into the home after purchase.

The commitment required of your time and energy is no small order. If you’ll be doing the renovations yourself, you need to be up to the physical task. If you are hiring professionals for the renovations, you will still need to be on site regularly and be able to take the time to shop for materials and appliances. The work can quickly become overwhelming, so make sure you are prepared.

2. Are You Connected?

When it comes to home renovations, hiring the right people can make or break a project—and your bank account! Time is money with contract work. Do you know trustworthy professionals to help you achieve your vision? Knowing architects, contractors, project managers, and other people in the construction business can be a major leg forward for your project. If you do not know anyone personally, ask trusted friends or family if they know any reliable project managers or general contractors. These professionals can make the renovation process more efficient and cost-effective for your bottom line.

3. Where Will You Live?

Are you prepared to live in a construction zone for months on end? Alternatively, if your renovations don’t allow you to live on site (if you’re gutting your bathroom, for instance), are you financially prepared to maintain two residences simultaneously? Make sure you look into all of your options. If a close friend or family member has room for you nearby, you could save money by bunking with them throughout the reno project. Finding an economical rental is also a good option if you cannot live in your new property while it is being renovated.

4. Do You Have the Vision?

Sure, it looks easy when Joanna and Chip Gaines do it on HGTV, but bringing a housing vision into reality isn’t something everyone is capable of doing. Getting a realistic mental image of how you want your home to look and then explaining that vision to the professionals helping you can be difficult. Some creative preferences and ideas can get lost in translation, leaving you with something you didn’t exactly want. A lot of creativity goes into renovating a home. Make sure you have thought through your ideas before you sign the dotted line for a fixer-upper.

A fixer-upper can be a fantastic investment opportunity for potential homebuyers. As with any real estate transaction, there are a lot of details and complex contracts involved in buying and fixing up an outdated home. Veitengruber Law is a full-service real estate law office with experience in all areas of contract review, real estate representation, and closing services. We can help ensure you are protected and supported as you purchase your dream home.

What You Need to Know About the NJ Appraisal Process

NJ appraisal

Whether you are buying or selling a home in the Garden State, you will have to go through the NJ appraisal process. If the buyer is taking out a mortgage, their lender will need to make certain financial decisions based on the results of a home appraisal. While this is a huge step in most real estate transactions, many people buying or selling a home aren’t sure what their role is in the home appraisal process. Here, we break down that process so you know exactly what a home appraisal can mean for you.

It’s true that a home inspection is intended to protect the buyer, a home appraisal is intended to protect the mortgage lender that is financing the real estate transaction. With a home appraisal, the lender in a mortgage is looking to get an objective estimate of the home’s value. They use this estimate to ensure that they are not lending more than the actual worth of the property. During a home appraisal, the appraiser is looking at everything on the entirety of the property, including: size, location, condition of internal and external home structures, any recent or necessary upgrades, and the price of comparable homes in the area. These pieces of information will provide insight into the true value of a home. From there, the appraiser will offer the lender a baseline sales figure.

In most real estate transactions, the buyer will pay for a licensed home appraiser to assess the property on behalf of the lender. The buyer will either pay at the time the appraisal takes place or add the fee to their closing costs. The lender will choose a licensed appraiser they feel will be the best judge of a home’s value, typically with a background in home construction, contracting, or home maintenance. A licensed home appraiser goes through at least 200 hours of coursework and must pass the state appraiser licensing exam before they can practice in the state of NJ.

A lender needs to be confident in the ability of the appraiser to remain objective in their appraisal, as well as their capability to back up every finding and their overall assessment of a home’s value. The appraisal report will include a drawing of the exterior, a map of the street and surrounding area, photos of the home’s exterior and street views, information on how the square footage was calculated, public tax and land records, and data surrounding area market sales. If any of these documents are missing, it can have a big impact on the home’s appraised value. If you notice any of this information missing, ask for another appraisal.

During the home appraisal process, it is common for the appraised home value to be more or less than the sale price of a property. If an appraisal is higher than the sale price for a home, this will benefit the buyer. But while the appraisal price and the listing price do not necessarily have to match, a major discrepancy in which the home is appraised for can lead to issues. As a buyer, you have a few options going forward. First, you can ask the seller to lower the sales price to match the appraisal price or pay the difference. A motivated seller may comply with this request.

If the seller does not comply, or the buyer is contractually obligated to move forward with the original sales price, there are still some things the buyer can do. If the buyer is concerned about losing their home loan, they can offer to increase the down payment. This way, the buyer is not borrowing as much money and may still be approved by the lender. The buyer could also agree to pay mortgage insurance. Borrowers who are financing more than 80% of their home purchase price will need mortgage insurance. This monthly payment would be tacked onto the regular mortgage payment and is typically .5%-1% of the total loan amount.

If the above options are not able to resolve the issue, a seller or buyer can dispute the home appraisal figure. The disputing party can work with their real estate agent or another licensed appraiser to come up with their own data. If this data diverges from the findings of the lender’s appraiser, there may be a case to correct the previous appraisal value. A lender will look at these findings and work with their own appraisal unit to come up with a new decision.

A home appraisal is an important part of any NJ real estate sale. Being knowledgeable of the process and understanding your options can save you a major headache later on. Real estate transactions are complex and the process never looks the same twice. Veitengruber Law’s experienced real estate team can help you navigate any potential problems with your appraisal, and throughout the entirety of your real estate transaction.

Common Reasons Banks Reject NJ Short Sale Offers

nj short sale, nj short sale attorney

There is a lot of ambiguity in the world of short sales. During the whole NJ short sale process, no one knows if an offer will be accepted or rejected from the bank except the bank itself. Short sales require complex documentation and listings can be misleading—not every property advertised as a short sale is a short sale. When listing agents advertise a property as a short sale, sometimes they are just hoping the bank will take a low offer. Because of the abundance of uncertainty involved in short sales, it is important to know the top reasons most banks cite as reasons for rejecting an offer.

Despite common belief, a seller does not have to be in foreclosure or bankruptcy for a short sale to occur. If the selling fees on top of the remaining mortgage are enough to put a seller under water, the sale of any property can proceed as a short sale. However, banks almost always require a ton of documentation before they will consider a short sale offer. While a NJ real estate agent who has experience handling hundreds of short sales could probably tell you if a bank will accept or reject an offer, it can be an arduous task for real estate agents unfamiliar with the process.

To give your offer the best chance of getting accepted, pay attention to these common reasons banks decline short sale requests:

The Price Is Too Low

The listing price of a short sale has little bearing on the price a bank may or may not accept. Often, listing agents will try to keep the list price low to attract more interested buyers and competitive offers. A bank, however, will not accept a list price that is too low—even if the seller accepts the offer. Banks can request one or multiple appraisals to determine the value of the property. It is helpful for the short sale agent to submit a comparative market analysis to justify the price of a potential offer. No matter what, the final sales price of the property is completely at the discretion of the bank. If they think they could make more money through foreclosure proceedings, they will reject the short sale offer.

Documentation Is Incomplete

Without every single required document, the bank will typically reject a short sale offer. A short sale package is a complex series of documents and even one mistake on any of the paperwork can cause a bank to reject the short sale. This is why working with a New Jersey law firm experienced in short sales (alongside your NJ realtor) can save you a lot of headache down the road. Be aware that banks are notorious for losing documentation. Keep copies of every document you provide in the event your paperwork gets lost.

The Buyer Does Not Qualify

Just because a buyer is motivated and can afford a mortgage does not mean they are qualified to purchase a property. The bank will look at the buyer’s credit history, employment history, debt, and evidence of sufficient assets. Buyers will need to have evidence of a loan prequalification or a loan pre-approval letter included in their short sale paperwork.

The Seller Does Not Qualify

If the seller is seeking debt forgiveness, the bank will need to receive sufficient evidence from the seller that they truly are unable to pay back the shortfall difference due to financial hardship. The seller typically stands a better chance of getting the short sale offer accepted if they are able to work with the bank to create a repayment plan. If the bank determines the seller does not have sufficient evidence of financial hardship, they may reject the short sale offer.

Our team at Veitengruber Law has years of experience helping clients negotiate real estate sales and complex short sales. We know what banks want to see in a short sale offer and will work with you to create an offer that has a high chance of being accepted. Call us today at 732-852-7295 for your free consultation and to start discussing your real estate plans.

Can I be Approved for a NJ Mortgage with a Bad Credit Score?

NJ mortgage

A lot of people with a bad credit score assume it is impossible to become a homeowner. A low credit score can definitely make it harder to get a new credit card or any type of loan, including (and especially) a mortgage loan. If the one thing standing between you and home ownership is your credit score, don’t give up hope. It is possible to get approval for a NJ mortgage with a low credit score.

What is considered a “bad” credit score to mortgage lenders?

Different lenders have different criteria for loan applicants. The lower your score, the more likely it is that potential lenders will see you as a risk. If your score is somewhere in the middle—between 620 and 740 (approximately)—there is a little more wiggle room. While you will likely face higher interest rates and be restricted in how much you can borrow, you should still be able to secure a mortgage loan without much issue. Generally, if your score is under 620, you will not be able to get a loan from a traditional lender. But that doesn’t mean you have no options for getting a loan; it just means you will have to go through less traditional lenders.

Private Lenders

One option for borrowers with low credit scores is to go with a private lender. Mortgages through private lenders often come with higher interest rates and more substantial minimum down payments for borrowers with bad credit. You also may have to do a little more work with a private lender, like providing additional paperwork that is typically not required with a traditional lender. It’s important to do your due diligence when going through a private lender. Shorter payback periods and higher interest rates can make it difficult to make your monthly mortgage payments. Make sure you will be able to make timely payments in full for the duration of the loan.

FHA Loans

Another possibility is a Federal Housing Administration (FHA) loan. If your credit score is at least 580, you can qualify for an FHA mortgage with 3.5% down. With a score between 500 and 580, you will need to put at least 10% down. The cutoff for credit scores with an FHA loan is 500. Downsides to an FHA loan include: high interest rates and a mortgage insurance premium of 1.75% as well as monthly insurance premiums. If you pay less than 10% of the loan for your down payment, you will have to pay these monthly insurance premiums throughout the life of the loan.

Mortgage Tips for Low Credit Score Borrowers

Sometimes it’s possible to make up for a bad credit score in other ways. You can offset the risk of the loan by offering to pay a bigger down payment. While first-time home buyers typically put down 6% or less, making a 20% or more down payment could encourage lenders to approve your application despite a poor credit score. Plus, the more money you put down, the lower your monthly payments will be.

Another option is to enlist the support of a co-signer. If you have a close friend or family member with a great credit score, they could help you secure a mortgage loan. This is not a commitment to take lightly, though. While the mortgage is in your name, the co-signer will be equally responsible for any payments. This means if you miss a payment, their credit will be negatively impacted. Working with a co-signer requires a lot of communication and trust.

#1 Way to Own a Home with Bad Credit

If your goal is to buy a property but your credit score is poor, the best thing you can do is take the time to rehab your credit score. The higher your credit score, the better chance you’ll have of working with a traditional lender. Working with a traditional lender means your down payment, interest rate and monthly payments will be lower. Regardless of your situation, Veitengruber Law can help you determine which path to home ownership is best for you.

Selling Your NJ Home When You’re Underwater on Your Mortgage

selling your NJ home

Do you owe more on your mortgage loan than what your home is actually worth? If you do, you’re not alone. This is called an “underwater” mortgage and it can be a huge obstacle to selling your home. Although the good news is the number of underwater mortgages has decreased significantly over the last five years, the challenge of selling your NJ home with an underwater mortgage hasn’t changed. Unfortunately, sometimes homeowners simply have no other option but to sell. If you find yourself facing this dilemma, chances are you will be writing a check to your lender after the close of sale. The good news is you can use these tips to reduce the amount you owe!

If you owe more on your home than it is worth, you could end up losing money in the selling process. If your home is worth $150,000 but you still owe $180,000 on your mortgage, you could end up making up the difference in payments to your lender after the sale closes. And that payment increases if you can’t manage to sell your house for the maximum price it is worth. Owing a lender after a sale is never a desirable outcome for a homeowner.

How can you limit the financial impact of selling your house with a mortgage that is underwater?

Ideally, you would wait to sell for as long as possible. Waiting to sell can help you in two ways. First, it could give you the time needed to allow your home to increase in value. The closer the estimated value of your home is to how much you owe on your mortgage, the less you will owe your lender after the sale. Second, waiting to sell gives you time to make enough monthly mortgage payments to decrease the amount you owe. Taking the time to make extra payments on the principal balance of the loan could help you increase equity.

Sometimes, however, it isn’t possible to wait to sell. A growing family or a change in employment can leave you needing to sell quickly. If you do need to sell now, do an honest assessment of your home. There are certain repairs you must make in order to sell your home. Listing your home while it is in disrepair will not lead to top dollar offers. Fix broken appliances, repair damaged floors and repaint dingy walls. Give your outside some attention as well. Keep your lawn tidy by pulling weeds and mowing regularly. Add some inexpensive plants to your front porch to create a more inviting façade for interested buyers.

While you do want to spend the least amount of money fixing up your home to sell, one expense that may be worth it is hiring a professional home stager. These experts know how to use the furniture and décor you already have to create an appealing display for potential home buyers. In shifting around your living spaces, they can make your home appear more spacious and charming. Your potential buyers need to be able to envision the full potential of your home—and a professional stager can help create a wonderful first impression.

Setting the right asking price for your property is important and nuanced. While it may seem like a good idea to ask for more than the property is worth in order to make up for the money you owe, that is not advisable. More often than not buyers are well aware of what a home is worth in the current market. Setting your asking price too high can have the effect of turning people away before they even see your home. At the same time, you do not want to undersell your home and spend more than you need paying the difference to your lender. Seeking the advice of a real estate agent familiar with your area is a great way to set a good asking price. Experienced real estate agents will know what price will attract the highest volume of interested buyers. The more buyers that are interested in your home, the more likely you are to sell for the full value of your property.

If you are trying to sell your home with an underwater mortgage, you don’t have to roll over and accept a huge financial loss. There are plenty of things you can do to increase the value of your home quickly in order to yield the highest offers from potential buyers. Interested in other options? Ask us if a short sale is right for you.

Why We Stand Out as a NJ Real Estate & Debt Relief Law Firm

best attorneys in NJ

At Veitengruber Law, we strive to provide service that is above and beyond the standard. We understand that there is no one size fits all solution to financial and legal issues. Our experienced team manages every single case on an individualized basis, providing proven solutions from years of experience managing cases. Our goal is to help our clients achieve financial security with a customized plan specific to their needs. As a result of our practices, our clients are able to move forward to make stronger financial choices confidently and independently.

George established Veitengruber Law to help families and individuals in need of financial help. During his seven years of experience working as a Senior Associate for a Monmouth County debt resolution firm, George saw first-hand the toll overwhelming debt can have. When he opened his solo practice in 2010, he decided to use his vast legal and courtroom experience to help clients achieve their financial goals. Beyond just providing legal expertise and defense, George and his team stick with clients to help them learn valuable financial lessons. This holistic approach allows George to help clients even after their case has been settled, allowing them to look forward to a brighter financial future.

Veitengruber Law maintains a concentrated legal focus, allowing George to bring the full strength of his experience and success to the table for every single client. As a full-service real estate and debt relief solutions practice, we can provide unsurpassed services to our clients.

The Veitengruber Law team has years of experience in all aspects of real estate transactions from contract review to real estate presentation and closing services. Your home is typically the largest investment you will ever make. NJ real estate transactions can involve highly detailed paperwork and complex contracts. George and his team can work with you during sales, purchasing, inspections, liens, titles, and contracts so you can feel confident in your real estate transactions.

Veitengruber Law saves an average of 60 families from foreclosure eviction each year. George is highly experienced in the wide variety of legal strategies and foreclosure defenses to help keep our clients in their homes. We analyze our client’s specific circumstances and provide expert guidance on the best foreclosure alternative case-by-case. Our team will explain your options in plain language so you can understand all of your options.

We are also experienced in providing proven debt-relief solutions tailored to every situation. Our team has significant experience negotiating with difficult lenders, creditors, and other financial institutions. Our insight into the way credit card companies work informs the effective solutions we can offer our clients. Your individual debt solution may involve a mortgage modification, loan refinancing, settling with a creditor, or simply creating a good budget to follow. We make sure our debt relief solutions are realistic, appropriate, and unique to each client.

While we know bankruptcy is not a solution for every situation, we work against the myth that bankruptcy is the end of the line. Time and again, we have helped our clients take bankruptcy as a first step back to financial health. Not only can bankruptcy save your home as an automatic stay to halt a foreclosure, it can be an excellent tool to get out from under unmanageable debt. Our team will only suggest bankruptcy if it is truly the best solution for you.

Beyond our expertise and proven success, we offer an approachable experience for our clients. We understand how much stress and anxiety these heavy financial decisions can cause—and how intimidating it can be to reach out to a lawyer for help. Our goal is to make our clients as comfortable as possible throughout the entire process. We want to understand your goals and help you find comprehensive solutions to your problems. Contact us today for a free consultation!

Affordable Housing Options for NJ Seniors

NJ seniors

With the first wave of baby boomers turning 65 in 2011, the number of senior citizens in the United States is increasing. According to the US census, by 2030 the number of people 65+ will reach nearly 71.5 million. Most seniors live on fixed incomes and sometimes retirement savings or programs like Social Security can’t support their housing expenses. Because many of these senior citizens will need affordable housing options, the U.S. Department of Housing and Urban Development (HUD) has been increasing their initiatives to help seniors manage their cost of living in retirement.

 

Reverse mortgages are an increasingly popular option for seniors who still have equity in their current home and are looking to supplement their retirement income. If you are 62+ and have paid off your mortgage or paid off a significant amount of the loan, you may be eligible for a reverse mortgage. Under a reverse mortgage, instead of making monthly payments to the lender, the lender actually makes payments to the borrower. The borrower must still make regular payments on property taxes and homeowners insurance. This allows retirees to use the wealth they have accumulated in their homes to help cover their cost of living.

 

There are, however, a lot of reverse mortgage scams to watch out for. Some companies will outright lie to sell their services to unsuspecting and desperate seniors. The only reverse mortgage insured by the U.S. Federal Government is the Home Equity Conversion Mortgage (HECM). Through the HECM program, you will be able to withdraw some of your home’s equity. The amount available for withdrawal will vary from person to person and depends on the age of the youngest borrower, the current interest rate if your mortgage is not paid off, and the value of your home.

 

If you find it is impossible to stay in your current home, HUD also provides help for seniors looking to move into lower-income housing through senior housing vouchers, Section 202 supportive housing, and public housing.

 

The Housing Choice Voucher Program (HCVP) allows seniors to look for housing in the private sector amongst specific properties run by local public housing agencies including single-family homes, townhouses, and apartments. There are two kinds of vouchers: tenant-based vouchers, which move with the renter – and project-based vouchers, which are assigned to specific units and are not transferable. Typically, rent and utilities are calculated at 30% of the monthly adjusted gross income and the voucher will make up the difference in expenses. In order to find out if you or your loved one qualifies for this program, you will need to contact your local public housing agency.

 

Established in 1959, the Section 202 supportive housing program is the only HUD program specifically created to provide housing for seniors and those with disabilities. This program is designed to help seniors live as independently as possible while also offering assistance with daily living. Assistance can include dressing, bathing, housekeeping, and transportation. In this program, HUD provides loans to private and nonprofit organizations to finance the building and management of supportive housing services along with rent subsidies for residents. Typically, seniors that are 62 or older and have a very low household income (the average yearly income for Section 202 residents is $10,000/year) are eligible for this program. To apply, you will need to contact the individual housing community you are interested in.

 

Public housing for seniors includes high-rise apartments and duplexes that are operated by the local public housing agency. In this program, seniors will typically spend about 30% of their household income for rent and utilities. It is important to note that due to the limited resources available to HUD and local housing associations, there are typically long waiting lists for public housing. That is why is it important to be proactive and get in touch with your local public housing agency in order to determine your eligibility and explore all of your housing options.

 

Veitengruber Law is ready to offer expert advise on housing solutions for NJ seniors. Our goal is for you or your loved one to age in comfort and security. If you are looking for housing options for yourself or an aging parent or relative, it is important to know what resources are right for you. Call us today for your free consultation.

Understanding Your NJ Mortgage Contract

NJ real estate attorney

Besides the possible decision of choosing a college, getting married, and the myriad of decisions that come along with having children, purchasing a home is perhaps one of the most momentous decisions you’ll make in life. It will almost certainly be your most expensive purchase. Our own human desire for control tempts us to turn to our own intuition when working through challenges – thinking we can “do it all.” Though it’s not mandatory, seeking out a real estate attorney will smooth out the home buying process from start to finish and ensure that this important transaction is a positive one.

Working with Veitengruber Law on your New Jersey real estate transactions guarantees that every aspect of your real estate experience will flow smoothly. Real estate transactions are very complex, and many legal minutiae are involved in reviewing contracts and throughout the closing process. New Jersey real estate sales and purchases are very multifaceted and “high stakes” transactions. With any real estate transaction, a huge amount of paperwork is involved. A real estate attorney can decipher and explain the real estate “legalese” in laymen’s terms as well as make sure the transaction is fair and equitable.

Not utilizing a real estate attorney in conducting these important transactions could make room for potential mistakes resulting in an unsuccessful transaction such as:

  • Not thoroughly reviewing and properly drafting the real estate contract
  • Real estate disclosure documents being misunderstood and/or misinterpreted
  • Due diligence not being carried out when searching the title

Whether your NJ real estate purchase or sale is straightforward or more complex, it is always smart to have an experienced NJ lawyer look over the contract before closing. It is highly advisable to work closely with a real estate attorney when you’re involved in more intricate real estate transactions such as foreclosure sales, short sales and deed in lieu of foreclosure matters.

Promises made by the seller to the buyer, called “covenants” (i.e. repairing a roof) are only enforceable as long as the contract is in effect. Once the transaction is complete, these promises are no longer enforceable. The seller then has no obligation to the buyer to follow through.

Making sure you have a reasonable amount of time to review the documents prior to closing is very important. You don’t want to see these documents for the first time when you’re sitting down prior to the start of the closing meeting.

In some cases, you must bring certified funds, payable to yourself for payment at closing. An experienced real estate attorney can provide you in advance the amount you will need to have at closing. Your real estate attorney can also guide you in purchasing title insurance that protects you and your heirs for as long as you own the property.

When closing the title of a real estate transaction, the process can sometimes be overwhelming. Without an ex

perienced real estate attorney involved, an important step or steps could be missed in executing the deed successfully. Having a real estate attorney present when completing the closing paperwork ensures it is done correctly and the deed is accurate when signed over to the new owner.

Contact Veitengruber Law today for an experienced, reliable and trustworthy New Jersey real estate attorney and legal team. Get closer to living in your dream home with a lot less stress along the way.

Is a NJ Real Estate Survey Really Necessary?

NJ real estate

Typically, a survey of a property listed for sale in the state of New Jersey is facilitated by a licensed surveyor who follows regulations enforced by NJ laws. These surveys are generally performed prior to a new owner buying the property. Although a buyer may not feel that a survey is necessary, if they are utilizing a mortgage loan to finance, many lenders in NJ will require a survey prior to closing. If your lender does not require a survey be performed, you can skip it, but there are a lot of good reasons to consider going through with a survey anyway.

What does a survey of the property typically include?

A survey of a property includes VERY important information for you to know before jumping into purchasing. For instance, it will state exactly where your property line starts and ends as well as any renovations or work that has been done to the property. It will also disclaim building lines and setbacks, which you’ll need if you decide to make changes to your home or property. With an official survey completed, you will know the zoning laws concerning adjacent buildings or sidewalks.  Other things like utility easements (such as where lines, poles, pipes etc. lie or run) will also be included so that you know if everything is up to code. A survey also contains details of any neighbor-shared part of the property such as a driveway or a neighbor’s ability to drive on your property to get to their own.

Why should I obtain a survey of my potential future home?

In addition to the reasons mentioned above, there are even more ways a survey can help you in the future – after purchasing. Some of these details include information on existing fences that may be encroaching onto your property. Suppose you wanted to start something as simple as a garden or build a patio but the property backs up to a stream/creek/pond or other body of water? It is imperative to know about flood history or underground waters that are not visible to the naked eye. Furthermore if the property is next to a cemetery, the survey will reveal any family plots or cemeteries existing on the land.

There may also be zoning restrictions that are revealed during a survey. Zoning restrictions can affect how you may use the property. This would be extremely important, especially if you were thinking of renovations that include something like an underground pool. Even if there were NOT any zoning restrictions found, you would still need and want to know things like where pipelines, water lines, catch basins, vaults, and wires may run. Additionally, any existing trees on the property may affect utility lines. If so, local utility company/ies may have established privilege to use part of the property for upkeep of the lines. They may even have a say on how tall trees can grow on your lot.

Lastly, before a contract on the home can be drawn up, the seller has to show a good standing title for the home. A survey can be very helpful in showing any zoning violations, easements, or other defects in the title. These are just several of many important disclosures you will want to know prior to signing your John Hancock on the contract paperwork.

 

How can I get more information about NJ real estate surveys?

At Veitengruber Law, we can help you navigate the ins and outs of buying a potential property. We can help you fully understand just what you may be getting into before making a potentially huge mistake in an investment. Just contact us for a FREE one-hour consultation, and we can begin helping you make the best decision about obtaining a survey, and so much more.