As you know, our goal is always to help you achieve your goals and exceed your expectations!
Having said this, I would therefore like to take this opportunity to inform you about yet another tremendously valuable resource available to you from Team-Sohail at your disposal; it’s called Real-Time Market-Snapshot.
Instead wondering the price of the house at the corner of your street that was just listed, just sold or how do actual selling prices compare to listing prices in your area or how many homes for sale in your area; this tool gives you an instant, most up-to-date answers to the above questions and much much more.
I am sure once you start using it, you will appreciate the fact that you would be consistently updated with reports e-mailed according to your preferred schedule. It also automatically informs you of changes in your marketplace.
Simply click here and follow the user-friendly directions
Visit My Website http://www.homesbysohail.com/
About Me
- Team Sohail
- Sohail is a Founding Member of International Luxury Society and Sohail is now a International Real Estate Specialist, aka IRES. Having said this, we can better position the marketing of the properties those are listed with Sohail of Keller Williams Real Estate. A service owners/builders dreamed of is now available with Team Sohail. Please contact us should you need more information on this. He Cares, He Listens, He Gets Results!
Monday, November 24, 2008
Friday, September 19, 2008
Representation by a Lawyer in a New Jersey Real Estate Closing
Representation by a Lawyer in a New Jersey Real Estate Closing
By Gerald D. Siegel, Esq.
The first phase of a real estate closing begins with the preparation of a contract after there has been an agreement in principal about the key terms of a purchase or sale. The law requires that any agreement for the purchase and sale of real estate be in writing to be “legal.”
In New Jersey, real estate agents are allowed to prepare such contracts. The contract must contain a paragraph concerning each party’s right to have the contract reviewed by an attorney within three business days of the delivery of the signed contract to each party. The “attorney review clause” gives the attorney for either party the right to disapprove the contract, for any reason should their client want to get out of it. Oftentimes, due to time considerations, an attorney will disapprove the contract to obtain more time to negotiate more favorable terms for their client.
A good contract should encompass the following:
- A contract sales price.
- The amount and time frame for the agreed upon deposits to be paid.
- Identification of who will hold the deposit until closing.
- The amount of the mortgage loan the buyer must obtain to buy the property.
- A date by which the mortgage loan must be obtained.
- The right of the buyer or seller to cancel the contract if the buyer can’t legitimately obtain the mortgage loan.
- A clear closing date.
- That the seller must convey good title to the home so that no one in the future can challenge the buyer’s right to ownership.
- What appliances are included in the sale.
A clause providing buyers with the right to have an inspection of the property for termites, radon, and physical defects in the property, when these reports must be obtained and delivered to the parties and how objectionable finding will be handled.
The reason is simple: all home purchases in New Jersey are “as is.” This means that
You have to go into the purchase with your eyes open. Once ownership is transferred, the
Seller is relieved of any responsibility if the home has problems or the appliances break
down, unless the seller has committed a fraud.
Once the inspections occur and reports provided, further negotiations may take place
if physical defects are found. Sometimes seller will agree to make repairs or allow a credit
against the sales price to resolve inspection issues. Sellers will usually not be responsible
to make cosmetic repairs.
A clause stating that the Seller is responsible for obtaining and paying for repairs, if any, to obtain a municipal Certificate of Occupancy.
Most towns have a law that requires that the building department perform an inspection of
property before it is transferred/sold.
Therefore, the classic real estate closing can be looked at in phases: contract preparation and attorney review, inspections and negotiations as a result of the inspection and the activity which takes place once the buyer received the written mortgage loan commitment, and the closing itself.
Once the mortgage loan commitment is obtained by the buyer, the seller is so advised. This makes the seller feel secure. A flurry of activity takes place. It is at this time that buyer’s attorney orders title, assessment and judgment searches. This is a history of the Property and its owners which reveal problems, if any, with the title to the house and any legal judgments against the seller.
This work is performed by a title company which will make a written report, continually updated until the closing. The report is provided to all the lawyers and to buyer’s lender so that everyone is aware of the history of the property. Any title issues or judgment issues will be resolved at this time with a view towards the closing.
The closing is normally held at the office of the buyer’s attorney. A day or two before the closing the title insurance company, which usually prepares the HUD -1 will contact you and inform you how much money to bring to closing in certified funds. (Personal checks cannot be accepted).
The buyer comes to the closing before the seller to sign the mortgage loan documents and other papers required by the lender. Buyers should be prepared to sign papers until their hands are very tired. At the very least you will sign a “note”, a promise to pay back your lender, a “mortgage”, in which the house is given to the bank as collateral for the loan, an affidavit of title that recites your marital history and any open judgments against you, and a “RESPA” or “HUD-1’ which is the closing statement breaking down and itemizing each closing cost and where all the money in the transaction is going and who is getting it.
After the mortgage loan is closed the seller comes and provides a ‘deed” the document giving you ownership, a certificate of occupancy, keys garage door openers and other routine documents.
While each party usually has an attorney, closings are usually non-adversarial. Lawyers who excel in real estate transactions are good problem solvers who help make the process run smoothly. The purchase and sale of a home should be positive life cycle events and good attorneys guide the parties towards that goal.
Gerald D. Siegel, Esq. is an established attorney who has been practicing in this area for 30 years. He has performed numerous closings concerning local properties with clients who utilize the various lenders in the area. Mr. Siegel’s contact information is set forth below, should you have any questions.
Gerald D. Siegel, Esq.
Law Offices Siegel & Siegel, P.C.
666 Plainsboro Road Bldg 100 Suite F
Plainsboro, N.J. 08536
Tel. 609-799-6066
Fax. 609-799-6274
E-Mail: gsiegel@nj-negligencelawyer.com
Web Site: www.nj-negligencelawyer.com
www.centraljerseypersonalinjurylawyer.com
Tuesday, May 20, 2008
Bucking the trend
Jersey's housing market is doing better than most other states
Wednesday, May 14, 2008
BY SAM ALI
Star-Ledger Staff
The median price for a single-family home fell 7.7 percent, to $196,300, in the first quarter, compared with the same period last year -- the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982.
But the Northeast region bucked the national trend, with existing home prices rising 3.2 percent during the quarter, to a median of $280,000. The Northeast was the only region in the country to show a rise in home prices during the first three months of the year, according to quarterly housing data released yesterday by the NAR.
In New Jersey, the housing market continued to fare better than the nation as a whole.
Home prices in the Garden State rose in a number of areas, including the Atlantic City region, where the median sales price increased 4.8 percent in the first quarter, to $277,400, and the Trenton-Ewing market, where the median price rose 1.6 percent, to $288,200. The median is the price where half the homes sold for more and half for less.
And in stark contrast to the rest of the country, New Jersey was one of only three states where the volume of existing home sales actually rose in the first quarter compared with a year earlier.
Nationally, existing-home sales -- which generally account for 85 percent of all home sales -- dropped 22 percent from the first quarter of 2007, the NAR reported.
However, in New Jersey, the sales volume rose 4 percent. The other two states that posted increases in home sales for the quarter were Alaska and Illinois.
Kenneth Fears, an economist with the NAR, attributed the jump in existing home sales in New Jersey to a dramatic drop in 30-year fixed mortgage rates over the past six months. Fears said interest rates on conforming, 30-year, fixed-rate loans slipped to as low as 5.8 percent, from 6.8 percent, making home buying more affordable.
The low rates, coupled with sluggish sales the previous two quarters and New Jersey's proximity to Manhattan, apparently led to a spike in demand during the most recent quarter.
"Part of what we're seeing now is pent-up demand is getting released again," Fears said. "Sales in New Jersey were very slow for awhile and it was hard to get financing and rates were higher. It has since loosened up."
Also helping spur sales in New Jersey is a resurgence in the number of lenders getting approved to make FHA loans -- mortgages backed by the Federal Housing Administration that cater to people with blemished credit and low-to-moderate income households, said Lawrence Yun, chief economist of the NAR. Demand for FHA loans, which historically accounted for about 20 percent of mortgage originations, dried up during the housing boom as homebuyers were lured by the ease of securing subprime loans, Yun said.
FHA applications rose 95 percent in the fourth quarter of 2007, Yun said.
"To originate FHA loans, lenders first need to get certified from the HUD (Department of Housing and Urban Development), and more and more lenders are trying and getting approved," he said.
Yun said he expects an even bigger rise in FHA loan usage this year.
The housing market in other parts of the country clearly did not fare so well during the first quarter, according to the NAR report.
The NAR's quarterly survey of home prices showed prices in the South, dropped 7.5 percent, to a median of $164,200; in the Midwest, they fell 7.9 percent, to $142,700; and in the West, they plunged 12.3 percent, to $296,300.
All told, median prices in 100 of 149 metro areas fell in the first quarter of 2008.
In New Jersey, existing home prices in the Newark-Union area, which includes Essex, Hunterdon, Morris, Sussex and Union counties, fell 3.4 percent, to $409,300. In the New York-northern New Jersey area, the median price fell 3.9 percent, to $445,4000. And in the Edison area, which includes Middlesex, Monmouth, Ocean and Somerset counties, the median home price fell 0.6 percent, to $361,200.
But even in those parts of the state where prices fell, the declines were modest compared with most of the rest of the country.
The NAR blamed much of the record decline in home prices on liquidity problems that are making it difficult for homebuyers to secure financing for expensive homes in high-priced markets.
Indeed, lenders are charging between 1 and 1.5 percentage points more for so-called jumbo loans, compared with conforming loans under $417,000, said Keith Gumbinger, a vice president at HSH Associates, a financial publisher based in Pompton Plains. And the higher rates are discouraging sales in higher price ranges, he said.
As of last week, the average rate on a 30-year fixed jumbo mortgage was 7.18 percent, compared with 6.03 percent for a conforming loan, Gumbinger said.
Also hurting home prices and sales is the big spike in foreclosure rates over the past 12 months, Fears said.
A separate report yesterday showed the number of home foreclosures rose sharply last month compared to April 2007, jumping 65 percent nationally. Data released by the California-based research firm RealtyTrac showed more than 54,500 properties were repossessed by lenders nationwide in April. In all, about 2 percent of U.S. households were in some stage of foreclosure during the month, RealtyTrac said.
"In areas where you have a lot of foreclosed properties, lenders are fire-selling those homes at deeply discounted prices, so that is skewing median prices down as well," said Walter Molony, a spokesman for the NAR.
Wednesday, May 14, 2008
BY SAM ALI
Star-Ledger Staff
The median price for a single-family home fell 7.7 percent, to $196,300, in the first quarter, compared with the same period last year -- the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982.
But the Northeast region bucked the national trend, with existing home prices rising 3.2 percent during the quarter, to a median of $280,000. The Northeast was the only region in the country to show a rise in home prices during the first three months of the year, according to quarterly housing data released yesterday by the NAR.
In New Jersey, the housing market continued to fare better than the nation as a whole.
Home prices in the Garden State rose in a number of areas, including the Atlantic City region, where the median sales price increased 4.8 percent in the first quarter, to $277,400, and the Trenton-Ewing market, where the median price rose 1.6 percent, to $288,200. The median is the price where half the homes sold for more and half for less.
And in stark contrast to the rest of the country, New Jersey was one of only three states where the volume of existing home sales actually rose in the first quarter compared with a year earlier.
Nationally, existing-home sales -- which generally account for 85 percent of all home sales -- dropped 22 percent from the first quarter of 2007, the NAR reported.
However, in New Jersey, the sales volume rose 4 percent. The other two states that posted increases in home sales for the quarter were Alaska and Illinois.
Kenneth Fears, an economist with the NAR, attributed the jump in existing home sales in New Jersey to a dramatic drop in 30-year fixed mortgage rates over the past six months. Fears said interest rates on conforming, 30-year, fixed-rate loans slipped to as low as 5.8 percent, from 6.8 percent, making home buying more affordable.
The low rates, coupled with sluggish sales the previous two quarters and New Jersey's proximity to Manhattan, apparently led to a spike in demand during the most recent quarter.
"Part of what we're seeing now is pent-up demand is getting released again," Fears said. "Sales in New Jersey were very slow for awhile and it was hard to get financing and rates were higher. It has since loosened up."
Also helping spur sales in New Jersey is a resurgence in the number of lenders getting approved to make FHA loans -- mortgages backed by the Federal Housing Administration that cater to people with blemished credit and low-to-moderate income households, said Lawrence Yun, chief economist of the NAR. Demand for FHA loans, which historically accounted for about 20 percent of mortgage originations, dried up during the housing boom as homebuyers were lured by the ease of securing subprime loans, Yun said.
FHA applications rose 95 percent in the fourth quarter of 2007, Yun said.
"To originate FHA loans, lenders first need to get certified from the HUD (Department of Housing and Urban Development), and more and more lenders are trying and getting approved," he said.
Yun said he expects an even bigger rise in FHA loan usage this year.
The housing market in other parts of the country clearly did not fare so well during the first quarter, according to the NAR report.
The NAR's quarterly survey of home prices showed prices in the South, dropped 7.5 percent, to a median of $164,200; in the Midwest, they fell 7.9 percent, to $142,700; and in the West, they plunged 12.3 percent, to $296,300.
All told, median prices in 100 of 149 metro areas fell in the first quarter of 2008.
In New Jersey, existing home prices in the Newark-Union area, which includes Essex, Hunterdon, Morris, Sussex and Union counties, fell 3.4 percent, to $409,300. In the New York-northern New Jersey area, the median price fell 3.9 percent, to $445,4000. And in the Edison area, which includes Middlesex, Monmouth, Ocean and Somerset counties, the median home price fell 0.6 percent, to $361,200.
But even in those parts of the state where prices fell, the declines were modest compared with most of the rest of the country.
The NAR blamed much of the record decline in home prices on liquidity problems that are making it difficult for homebuyers to secure financing for expensive homes in high-priced markets.
Indeed, lenders are charging between 1 and 1.5 percentage points more for so-called jumbo loans, compared with conforming loans under $417,000, said Keith Gumbinger, a vice president at HSH Associates, a financial publisher based in Pompton Plains. And the higher rates are discouraging sales in higher price ranges, he said.
As of last week, the average rate on a 30-year fixed jumbo mortgage was 7.18 percent, compared with 6.03 percent for a conforming loan, Gumbinger said.
Also hurting home prices and sales is the big spike in foreclosure rates over the past 12 months, Fears said.
A separate report yesterday showed the number of home foreclosures rose sharply last month compared to April 2007, jumping 65 percent nationally. Data released by the California-based research firm RealtyTrac showed more than 54,500 properties were repossessed by lenders nationwide in April. In all, about 2 percent of U.S. households were in some stage of foreclosure during the month, RealtyTrac said.
"In areas where you have a lot of foreclosed properties, lenders are fire-selling those homes at deeply discounted prices, so that is skewing median prices down as well," said Walter Molony, a spokesman for the NAR.
Subscribe to:
Posts (Atom)