5. Title
When purchasing a home, the purchase is not simply about the hard assets or the building itself; the buyer is actually purchasing the legal rights to the land upon which the home rests. These legal rights are described as the title, which is the legal ‘slate’ upon which all rights associated with that particular property, including dimensions, land use, and rights, are based on. When a title is deemed to be ‘clear,’ without ‘defects,’ the sale can go forward. Typically, the lender will require the buyer to purchase title insurance, which covers defects relating to the history of the property and the prior owners.
When the purchase occurs at the time of the closing, the title insurance companies make sure that the rights and interests to the property are clear, and that transfer of title takes place efficiently and correctly.
6. Closing Costs
These are the fees attached to the purchase of the property including documentation costs, assessments, credit reports, appraisal, flood certification, settlement closing fee, owner’s policy, mortgage policy, and inspection fees.
7. Escrow
The escrow is a contractual arrangement with a licensed third party, who is responsible for receiving and distributing funds and title for the property upon the terms of the purchasing agreement.
8. Attorney Fees
These are the costs paid to the attorneys for the preparation and recording of official documents.
9. Survey Fees
These are the fees for a survey of the lot or land and all structures on it, paid by either party, to confirm lot size and dimensions and check for encroachments.
10. Broker’s Fees
Brokerage commission, paid by the seller to a real estate broker, to compensate the agents involved in the sale for their services in marketing the property.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.