New Jersey Real Estate Closings Lawyers
In real estate law, a “closing” is also known as a “settlement.” This is usually the final day of a real estate transaction, and it could include a closing on the purchase of property and a closing on a mortgage. If a buyer is also selling real estate in the case of a move, there may be two closings to attend within a short period of time.
During the period before and on the day of the closing, both parties and the attorneys for both parties will review, and parties in the transaction will sign, a multitude of documents.
To close on the purchase of residential real estate, these documents are key:
- HUD Form 1/Disclosure and Settlement Statement;
- Warranty Deed;
- Proration Agreements;
- Tax and Utility Receipts;
- Name Affidavits;
- Acknowledgement of Reports;
- Abstract of Title and Title Insurance Policy;
- To close on a mortgage, the documents can include, but are not limited to:
- Truth-in-Lending statement or “Regulation Z” document;
- Amount Financed;
- Monthly payment letter;
- Note; and
- Mortgage Lien.
A closing on the purchase or sale of Commercial Real Estate is more complex. The transaction is seldom completed between individuals. To limit liability beyond the assets of the business, a commercial real estate transaction takes place between “entities.” Handling the money in this instance requires a longer and more detailed process than in residential real estate.
Some of the documents required are (not a complete list, as every transaction has unique characteristics and may require more or fewer documents):
- Letter of Intent;
- Contract of Sale or Lease;
- Alta Survey;
- Abstract of Title and Title Insurance;
- Acknowledgement of Reports (e.g. Environmental reports);
- In Commercial Real Estate transactions, RESPA does not apply;
- Quitclaim Deed;
- Non-foreign affidavit; title affidavit;
- Assignment and assumption of leases;
- Sale and assignment of service contracts; and
- Bill of sale conveying any personal property.
A seller of commercial real estate is wise to consult an experienced commercial real estate attorney in advance and throughout the process to advise on all of the details of the transaction to avoid liability and remove all contingencies prior to closing. There are many more regulations, laws and procedures involved in a commercial real estate transaction than explained here.
From the letter of intent throughout the due diligence process and closing, there could be many obstacles to overcome, including land use and zoning issues, as well as tax implications. When a business owner anticipates a purchase or sale of commercial real estate, contact one of the real estate attorneys at Einhorn Harris to fully understand all of the steps, requirements and impact of federal and state laws.
Given the complexities of real estate closings in New Jersey, we advise you to contact one of our experienced real estate attorneys at 973-627-7300 at Einhorn Harris today. We handle real estate issues throughout New Jersey.