In New Jersey, the home buyer pays for the owner’s and lender’s policy, however.
There two types of title insurance policies in New Jersey, each of which are paid at the time of closing, usually by the buyer of the home include:
Owner’s Title Insurance – protects the buyer by ensuring the buyer has a marketable title or free and clear.
Lenders Title Insurance – ensures the lender has a 1st line position on the property in case of default.
Prior to the transfer of any property, a title agent (or attorney) will have a title search conducted to ensure no outstanding encumbrances or liens exist.
Abstract Title examinations generally cost around $1500-$1700 in New Jersey.
Title Insurance Policies can Protect Buyers From Things Such as:
Missing heirs who may lay claim
Unpaid property taxes
The New Jersey Real Estate Transfer tax is a tax that is levied against any transfer of real estate property to offset the costs of tracking real estate transactions.
The state’s current rate of transfer tax is calculated at 1% of the total sale price of the home.
The payment is a prerequisite for recording the deed. The RTF is usually collected at the real estate closing by the legal representatives or title insurance agents responsible for recording the deed at the county registry offices. Funds from the RTF are then shared between the state and counties. The state portion of the revenue is allocated to neighborhood revitalization, shore protection, and the state’s general fund.
In NJ, those sellers who are 62 years or older at the time of closing, or are a disabled veteran get a little bit of a break, with a reduction in fees to 0.5% of the total sales price.
In the event that issues surrounding the title or survey emerge, contacting a local real estate attorney is the advised route to obtain counsel on your options and cost of resolution.
There are localized costs associated with the sale of a New Jersey house. These may include local stamp taxes, recording fees, community association estoppel fee, or other fees imposed by the county, city or town such as those for utilities or local taxes. For example, many NJ townships require that you legally verify you are, in fact, the owner prior to sale.
This process involves obtaining a “Township Certificate of Occupancy”. In some towns it only involves a smoke certification and in other towns in addition they have a list of items that the building inspector will look at. The town will also make sure that there are not any open permits. Costs can be around $100 or more depending.
The cost of deed preparation is paid for by the buyer’s attorney and generally ranges between $100-$150.
In the state of New Jersey it is not required that a licensed attorney be at the closing. It is in your best interests to hire an attorney that you trust to handle escrow and closing matters. Having a lawyer in your corner is never a bad idea for contract review or to assist in negotiations of the home inspection for example. Real estate attorneys may also be useful for assisting with unconventional circumstances such as with a lease-to-own or owner-financed deal, and with any issues that might arise with contract disputes or title issues. Some attorneys offer a “flat fee” real estate closing services $950 to $1500; others charge by the hour depending on the transaction.
While there are other ways to sell your home rather than going with the traditional real estate agent listing, when you hire an agent they are paid based on a commission rate negotiated with you against the sale price of your home.
Real Estate commissions in New Jersey are defined as a percentage of the sale price of a home, or can be a flat fee, or can be variable, they are ALL negotiable.
Some New Jersey home sellers opt to offer a home warranty to cover components or systems of a house that may pose a risk of failure for the buyer. While optional, offering a home warranty is a way to sweeten the deal, attract more buyers and remain competitive during months when the real estate market heats up. There are 2 types of warranties. One that inspection and one that does not need an inspection prior to giving a warranty.There are some advantages to the seller when offering a home warranty. They are also protected for the term of the listing in the same way as the buyer. One-year home warranties in New Jersey cost between $350-$850 depending on what is included.