Laura Giannotta Keller Williams Atlantic

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 5^th 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)

Buying a home at the Jersey Shore – What You Should Know…The Contract and Contractual Provisions.

You’ve been out looking at homes with the real estate agent you selected, you’ve got your mortgage lender in place, and you’ve found the perfect home in the perfect community.

It’s time to make an offer! While some agents representing bank owned properties, or builders of new construction homes require their own contracts for a home purchase, most contracts to purchase homes in New Jersey are standard, fill in the blank contracts, approved and supplied by the New Jersey Association of REALTORS® (NJAR).

I usually give my buyer clients a blank copy of the NJAR Standard Form of Real Estate Contract when we start looking at homes. If your agent doesn’t do this, ask! This will give you time to review the nearly 8 page document, and ask questions you might have.

Briefly, here’s a review of the important contractual provisions. This summary is a guide to the standard contract. Once you have a copy of your contract of sale, before it’s submitted to the seller, review each section with your real estate agent or an attorney. Get answers to any questions you have at this time!

The Cover Page is a general notice to both the buyer and seller. It again stipulates how the real estate agent submitting the contract is working, as a buyer’s agent, seller’s agent, disclosed dual agent or a transaction broker (representing neither the buyer nor seller).

It also outlines in the importance of using an attorney because the contract determines your rights, risks and obligations.

Here we run into a difference between north Jersey and south Jersey. Attorneys are almost always used in north Jersey. But once you get south, beginning in the southern sections of Ocean County, attorneys are seldom used. (More on this in the next installment.)

Sections 1 through 3 of the Contract of Sale includes the sale price, buyer and seller information, the address and description of the property, the amount of your deposit (escrow), in whose account that money will be held, the amount of your mortgage, the mortgage commitment date, the type of deed and the closing date.

Section 4 requires the buyer to state he/she has the money (including the mortgage) to close the transaction.

Section 7 requires the seller to provide clear title and allows reimbursement to the buyer if clear title cannot be provided.

Section 8 is where the buyer and seller state how the property will be used (single family, etc) and that it complies with zoning ordinances. This section also requires the seller to provide a Certificate of Occupancy.

Sections 9 and 10 outline the items included or excluded in the sale (refrigerator, washer, dryer, etc).

Sections 18 through 20 include inspection contingency clauses. The first is Lead-Based Paint. Any home built prior to 1978 requires the seller to provide a Lead-Based Paint Disclosure form. If the buyer wishes to have an inspection or risk assessment, that is allowed at the buyers expense. There are strict time frames built into the contract for the inspection and/or risk assessment. Be sure to review these with your agent. Failure to comply with any of the dates in this section will forfeit your rights to negotiate a remedy.

Section 20 continues the inspection contingency clauses. More specifically this section provides the time frame for a home inspection. Again, there are strict time frames built in, and to negotiate repairs you must adhere to the built in time frames. In the standard contract the only date you can set is the time frame for conducting the home inspection. Providing the report to the sellers and requesting repairs, must be completed within the time frames in the standard contract or amended in the additional contractual provisions section of the contract.

Section 24 explains the attorney review process and Section 26 outlines the broker’s commission and again provides a declaration of business relations for the real estate agents.

Section 31 is of particular importance in southern Ocean County. It outlines the seller’s responsibility for State mandated well testing and certification.

Section 35 is for additional contractual provisions. This section can be used to clarify any of the previous sections, or to cover additional concerns the buyer may have.

This is a general review of some of the sections in New Jersey’s Standard Contract to Purchase, used in the sale of most single family homes in New Jersey. Review the entire contract with your real estate agent and an attorney.

This Contract and Contractual Provisions report is the 4th in a 6 part series for home buyers 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

Buying a home at the Jersey Shore – What you need to know about homes and communities.

New Jersey has a long coastline, and most waterfront communities in Monmouth County and south call themselves the Jersey Shore.

My Jersey Shore is southern Ocean County, from Waretown (Ocean Township) down to Little Egg Harbor. Each town, Waretown, Barnegat, Manahawkin, Tuckerton and Little Egg Harbor have waterfront sections.

Homes in these communities vary, from old summer bungalows to new 3500 square foot mini mansions. While you’re deciding on the type of real estate agent and mortgage lender representation you want, you’ll probably be narrowing your internet search for a new home.

Here are some things to take into consideration in narrowing your search for the right home and community.

• What are the most important location issues for you? Is it proximity to work? Is it friendly neighbors? Is it the school system? While your agent can answer questions about neighborhoods, most of these questions are subjective.

Questions about schools and crime are particularly troublesome for REALTORS®. We cannot say a particular area is a ‘drug zone’ or an elementary school is substandard. Doing that could be considered ‘steering’ which is prohibited by law.

What we can do is provide local references (past clients) and websites for you to make the determination. I also suggest my clients visit the neighborhood at different times to get a better idea of what it would be like living there 24/7.

• How much room do you need? A small waterfront bungalow might not provide adequate square footage for a growing family. Are there pets to consider? This question is particularly important in condo and adult community purchases.

• Is it move-in ready? While there’s been much in the papers about great buys on short sale property (property being sold for less than is owed) and bank owned property (REO), there are some risks.

In most cases the sellers of these properties will not provide for repairs or a state mandated well test. Unless you’re handy, these properties could mean additional expenses that you might not be in a position to afford. Also, if you’re looking for that $8,000 first time homebuyer tax credit, a short sale or REO might not get to the closing table before the deadline.

• What is the best home for your living style? Do you prefer one level ranch style living, or is a colonial more to your liking. Do you want a basement? Do you need a garage?

Even if my home buyers have a preference for a home style, I will encourage them to look at homes that meet their needs and seem to be perfect in every other way. I’ve had clients that insist they wanted a ranch, but changed their minds when we looked at a well kept Cape Cod, on a quiet, street close to the elementary school, with all the interior amenities they wanted.

There are many other things to consider in selecting your home. It will be a great help to your REALTOR® and it will speed your search if you take time to consider location, size and style. But do you also have preferences about heat (electric, oil or gas), cooking (electric or gas), washer and dryer location, outdoor living space, a fenced yard and the list goes on. Give you perfect home some thought, write down everything.

When you sit down with your REALTOR®, be prepared to work on ‘Must Have’ and ‘Would Like to Have’ lists. Those lists will cover the items I’ve discussed, but should include many more, designed to find your perfect home and neighborhood.

This Homes and Communities report is the 3rd in a 6 part series for home buyers at the Jersey Shore.

1. New Jersey Real Estate Agency Relationships
2. Lenders and Loans
3. Homes and Communities
4. The Contract - Contractual Provisions
5. Offer and Acceptance - Attorney Review
6. Closing

Keller Williams Realty – Atlantic Shore
Laura Giannotta, ABR®
609-384-6121
Laura@JerseyShoreViews.com

GET YOUR OWN JERSEY SHORE VIEWS!
(Search homes for sale at the New Jersey Shore)

Tomorrow, Thursday and for the 2 additional Thursday’s through the Labor Day 2009 weekend, ‘we don’t need no stinking badges!’

The Borough of Beach Haven, on Long Beach Island, is making a last ditch effort to attract day trippers and mainland locals to the lovely beaches of this southern Long Beach Island community.

Thursday’s will be FREE BEACH DAYS in Beach Haven! No (stinking) badges required. It’s an effort to draw beach goers to the southern end of Long Beach Island to spend money they might have spent on a badge elsewhere in the community.

Most mainland locals, me included, don’t travel far during the summer months once we cross the Route 72 Causeway to the Island. We tend to buy season beach passes in Ship Bottom, Surf City and Long Beach Township. That way we cross the bridge, park the car and we’re on the beach!

Beach Haven Commissioners are hoping these free Thursdays will not only encourage visitors to drive the Boulevard south, but give badge checkers, who are mostly college students, a needed day off.

Additional Long Beach Island info you might find helpful:

• Handicapped Beach Access on Long Beach Island
• Public Restrooms on Long Beach Island
• Best Beaches in New Jersey

(The free beach Thursday’s (8/20, 8/27 and 9/3) applies only to the Beach Haven beachfront from 12^th Street to Nelson Avenue. )

Buying a home at the Jersey Shore? What you need to know about mortgage lenders in New Jersey and mortgage loans.

Getting a home mortgage loan might seem daunting these days. There are choices you need to make, much like the choices you make in the type of real estate agent representation.

Generally, mortgage lenders in New Jersey fall into two categories, direct lenders and mortgage brokers.

Direct lenders, either a bank or mortgage banker, fund your loan upfront but will usually sell many loans in a package, so after closing there might be another company servicing your mortgage.

Mortgage brokers generally represent several lending sources and act as intermediaries between you and several lenders.

No matter your choice, find a mortgage lender in New Jersey you trust and feel comfortable working with. Ask friends and family for referrals, talk to your real estate agent. Learn as much as possible about the individual, his or her experience and the company he or she represents before moving forward. Learn about the fees and costs of the loan product.

There are also several types of loans offered by mortgage lenders in New Jersey. The most common are conventional, FHA, VA and USDA.

• Conventional Mortgage Loan - a common type of mortgage secured by collateralized property and not insurance or guaranteed by the government. Because the loan is secured by collateral in the property at least 20% or more of the purchase is usually required for a down payment.
• FHA Mortgage Loan - a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). They are popular with first time buyers because of the low down payment requirements. To use this type of mortgage for a condo, the condo development must be approved by the FHA.
• VA Mortgage Loan - a home mortgage loan granted by a lending institution to qualified veterans of the U.S. Armed forces or to their surviving spouses and guaranteed by the VA. It can be used to purchase on conventional homes, mobile homes, and condominiums. To use this program, which provides 100% financing veterans must have a ‘Certificate of Eligibility’. VA loans are assumable, with the approval of the Veterans Administration, and allow funding fees to be rolled into the loan.
• USDA Mortgage Loan is a home loan program offer by the Rural Development Authority in the US Department of Agriculture. This program can provide 100% financing with no private mortgage insurance. The home must be located in an area defined as rural by the USDA and borrowers must meet certain income guidelines. As unlikely as it may seem, many areas in New Jersey qualify for USDA Mortgage Loan programs. Click here to view property eligibility.

New Jersey has some specific mortgage loan assistance available through the NJ Housing and Mortgage Finance Agency (HMFA).

Live Where You Work (LWLW) – This program is a home mortgage incentive program that provides low-interest mortgage loans to homebuyers purchasing homes in towns where they are employed. Check the HMFA website to see if the town you’d like to live in is covered by this program.

If you would like to buy a house in the town where you currently work, then LWYW might be right for you. Employees benefit from attractive mortgage rates, more flexible loan application review and underwriting criteria, and reduced commuting times to work. Municipalities benefit from having a committed workforce living nearby, and the activity and economic vibrancy that comes with people living near where they work. Click here for the LWYW fact sheet.

Home Ownership for Performing Employees (HOPE) is an employer guaranteed loan program that offers no down payment, below-market, fixed rate mortgages to eligible employees without private mortgage insurance. Employers must be approved by the HMFA. Here is the HOPE fact sheet.

Other programs through the NJ HMFA can be found here.

So take some time to explore the internet, talk to friends and do some investigating to find a mortgage lender in New Jersey that you can work with, and that can provide you the information necessary to make the right decision on the type of mortgage loan for your Jersey Shore home purchase.

This, Mortgage Lenders in New Jersey and Mortgage Loans report is part 2 of a 6 part series on home buying at the Jersey Shore.

1. New Jersey Real Estate Agency Relationships
2. Lenders and Loans
3. Homes and Communities
4. The Contract - Contractual Provisions
5. Offer and Acceptance - Attorney Review
6. 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, ABR®
609-384-6121
Laura@JerseyShoreViews.com

GET YOUR OWN JERSEY SHORE VIEWS!