With titles, you can have errors in public records. There could be unknown liens attached to the property, where the owner may not know they have a lien. It could be illegal liens that were created in the process and affected the chain of titles. There could be forgeries, easements, or boundary survey disputes. There could be some type of will that was never probated against the property and someone has a right to it. There could be a multitude of things that could happen, which can kill a real estate transaction.
What Happens At The Closing Of A Property?
Typically, the seller of a property doesn’t even come to closings. At the closing, the buyer would sign all documents related to the purchase of the home. It’s typically put together by a closing agent from a third party company that the attorney or the purchaser hires. They provide title insurance and the title search, and then the seller documents are part of that package. If there is financing, then there are all the mortgage documents that get signed. Once all those documents are signed, the lender provides the funding to the title company and the title company distributes the funds to the seller.
What Are Closing Costs And Fees That I Would Have To Pay?
The costs for closing depend on whether you are a seller or a buyer. The seller typically has the cost of paying off the mortgage and liens. The realtor fee is the responsibility of the seller and so are attorney fees. On the buyer’s side, you have title insurance, the title search, and some recording fees for the documents that were signed.
What Are Some Real Estate Pitfalls That People Can Avoid By Using An Attorney?
Land use issues can be uncovered, if you are using an attorney and you disclose what you want to do with the property. If there is an oil tank in the ground, an attorney can make sure there is insurance on that tank for the prior owner and whether that can be trumped. There can be title issues. An attorney can make sure that the chain of title is proper and there is no fraud or liens on your property.
For most people, their home is the largest purchase they will ever make in their life. They are investing, in most cases, hundreds of thousands of dollars in the purchase of real estate. Spending $1,000 for an attorney to make sure that the investment is right for you is a no brainer. You want to have a professional on your side to ensure that you are not going to have bigger issues later that are going to cost you far beyond what you are going to spend on that attorney.
For more information on Common Issues With Real Estate Title In NJ, a free strategy session is your best next step. Get the information and legal answers you’re seeking by calling (973) 200-1111 today.