Real estate transactions have three distinct phases. The first phase involves the contract, where the parties negotiate the terms and conditions of the transaction. The second phase is the due diligence, or inspection phase. This is the period where the property and the state of the title are examined. Issues that arise during the inspection phase may include such simple matters as a leaky faucet that needs a washer, to more serious matters such as title defects, asbestos or a leaking oil tank. Last is the settlement or closing. This is when the transaction is concluded and the property is actually bought.
New York and New Jersey differ in real estate transactions. Typically in New York most of the due diligence is done before the contract is signed. Conversely, in New Jersey the contract is usually signed first, then the transaction may be modified or cancelled during the three-business day attorney review period. Following the attorney review period, the transaction goes forward and the buyer proceeds with the inspections.
Legal fees for real estate closings in New York to New Jersey vary widely. If you are purchasing in New York, please contact us to discuss what it might cost for us to represent you through the process of buying a home. In New Jersey, we typically apply a standard flat fee of $1,200.00 payable at the settlement. For New Jersey transactions, should the deal be cancelled after a contract is formed, we apply a reduced fee of $500.00. Out of pocket expenses are billed separately but they are charged based on what is invoiced to us. Some firms "pump up" the out of pocket portion of their fee. This is a practice we do not follow.
Please contact us and a member of our staff will be glad to assist with any questions you may have.