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Buying a home at the Jersey Shore – What You Should Know…The Contract and Contractual Provisions.

You’ve been out looking at homes with the real estate agent you selected, you’ve got your mortgage lender in place, and you’ve found the perfect home in the perfect community.
 
It’s time to make an offer!  While some agents representing bank owned properties, or builders of new construction homes require their own contracts for a home purchase, most contracts to purchase homes in New Jersey are standard, fill in the blank contracts, approved and supplied by the New Jersey Association of REALTORS® (NJAR).

I usually give my buyer clients a blank copy of the NJAR Standard Form of Real Estate Contract when we start looking at homes.  If your agent doesn’t do this, ask!  This will give you time to review the nearly 8 page document, and ask questions you might have.
 
Briefly, here’s a review of the important contractual provisions.  This summary is a guide to the standard contract.  Once you have a copy of your contract of sale, before it’s submitted to the seller, review each section with your real estate agent or an attorney.  Get answers to any questions you have at this time!
 

The Cover Page is a general notice to both the buyer and seller.  It again stipulates how the real estate agent submitting the contract is working, as a buyer’s agent, seller’s agent, disclosed dual agent or a transaction broker (representing neither the buyer nor seller).
 
It also outlines in the importance of using an attorney because the contract determines your rights, risks and obligations.
 
Here we run into a difference between north Jersey and south Jersey.  Attorneys are almost always used in north Jersey.  But once you get south, beginning in the southern sections of Ocean County, attorneys are seldom used.  (More on this in the next installment.)

Sections 1 through 3 of the Contract of Sale includes the sale price, buyer and seller information, the address and description of the property, the amount of your deposit (escrow), in whose account that money will be held, the amount of your mortgage, the mortgage commitment date, the type of deed and the closing date.
 
Section 4 requires the buyer to state he/she has the money (including the mortgage) to close the transaction.

Section 7 requires the seller to provide clear title and allows reimbursement to the buyer if clear title cannot be provided.
 
Section 8 is where the buyer and seller state how the property will be used (single family, etc) and that it complies with zoning ordinances.  This section also requires the seller to provide a Certificate of Occupancy.
 
Sections 9 and 10 outline the items included or excluded in the sale (refrigerator, washer, dryer, etc).
 
Sections 18 through 20 include inspection contingency clauses.  The first is Lead-Based Paint.  Any home built prior to 1978 requires the seller to provide a Lead-Based Paint Disclosure form.  If the buyer wishes to have an inspection or risk assessment, that is allowed at the buyers expense. There are strict time frames built into the contract for the inspection and/or risk assessment.  Be sure to review these with your agent.  Failure to comply with any of the dates in this section will forfeit your rights to negotiate a remedy.
 
Section 20 continues the inspection contingency clauses.  More specifically this section provides the time frame for a home inspection.  Again, there are strict time frames built in, and to negotiate repairs you must adhere to the built in time frames.  In the standard contract the only date you can set is the time frame for conducting the home inspection.  Providing the report to the sellers and requesting repairs, must be completed within the time frames in the standard contract or amended in the additional contractual provisions section of the contract.
 
Section 24 explains the attorney review process and Section 26 outlines the broker’s commission and again provides a declaration of business relations for the real estate agents.
 
Section 31 is of particular importance in southern Ocean County.  It outlines the seller’s responsibility for State mandated well testing and certification.
 
Section 35 is for additional contractual provisions.  This section can be used to clarify any of the previous sections, or to cover additional concerns the buyer may have.
 
This is a general review of some of the sections in New Jersey’s Standard Contract to Purchase, used in the sale of most single family homes in New Jersey.  Review the entire contract with your real estate agent and an attorney.

This Contract and Contractual Provisions report is the 4th in a 6 part series for home buyers at the Jersey Shore.

New Jersey Real Estate Agency Relationships
Lenders and Loans
Homes and Communities
The Contract - Contractual Provisions
Offer and Acceptance - Attorney Review
Closing
 

Buying a home at the Jersey Shore – What you need to know about homes and communities.

New Jersey has a long coastline, and most waterfront communities in Monmouth County and south call themselves the Jersey Shore. 

 My Jersey Shore is southern Ocean County, from Waretown (Ocean Township) down to Little Egg Harbor.  Each town, Waretown, Barnegat, Manahawkin, Tuckerton and Little Egg Harbor have waterfront sections.

Homes in these communities vary, from old summer bungalows to new 3500 square foot mini mansions.  While you’re deciding on the type of real estate agent and mortgage lender representation you want, you’ll probably be narrowing your internet search for a new home.

Here are some things to take into consideration in narrowing your search for the right home and community.

• What are the most important location issues for you?  Is it proximity to work?  Is it friendly neighbors?  Is it the school system?  While your agent can answer questions about neighborhoods, most of these questions are subjective. 

Questions about schools and crime are particularly troublesome for REALTORS®.  We cannot say a particular area is a ‘drug zone’ or an elementary school is substandard.  Doing that could be considered ‘steering’ which is prohibited by law. 

What we can do is provide local references (past clients) and websites for you to make the determination.  I also suggest my clients visit the neighborhood at different times to get a better idea of what it would be like living there 24/7.

• How much room do you need?  A small waterfront bungalow might not provide adequate square footage for a growing family.  Are there pets to consider?  This question is particularly important in condo and adult community purchases.     

• Is it move-in ready?  While there’s been much in the papers about great buys on short sale property (property being sold for less than is owed) and bank owned property (REO), there are some risks. 

In most cases the sellers of these properties will not provide for repairs or a state mandated well test.  Unless you’re handy, these properties could mean additional expenses that you might not be in a position to afford.  Also, if you’re looking for that $8,000 first time homebuyer tax credit, a short sale or REO might not get to the closing table before the deadline.

• What is the best home for your living style?  Do you prefer one level ranch style living, or is a colonial more to your liking.  Do you want a basement?  Do you need a garage?

Even if my home buyers have a preference for a home style, I will encourage them to look at homes that meet their needs and seem to be perfect in every other way.  I’ve had clients that insist they wanted a ranch, but changed their minds when we looked at a well kept Cape Cod, on a quiet, street close to the elementary school, with all the interior amenities they wanted.

There are many other things to consider in selecting your home.  It will be a great help to your REALTOR® and it will speed your search if you take time to consider location, size and style.  But do you also have preferences about heat (electric, oil or gas), cooking (electric or gas), washer and dryer location, outdoor living space, a fenced yard and the list goes on.  Give you perfect home some thought, write down everything.

When you sit down with your REALTOR®, be prepared to work on ‘Must Have’ and ‘Would Like to Have’ lists.  Those lists will cover the items I’ve discussed, but should include many more, designed to find your perfect home and neighborhood.  

This Homes and Communities report is the 3rd in a 6 part series for home buyers at the Jersey Shore.

1. New Jersey Real Estate Agency Relationships 
2. Lenders and Loans
3. Homes and Communities
4. The Contract - Contractual Provisions
5. Offer and Acceptance - Attorney Review
6. Closing

Keller Williams Realty – Atlantic Shore
Laura Giannotta, ABR®
609-384-6121
Laura@JerseyShoreViews.com 

GET YOUR OWN JERSEY SHORE VIEWS!
(Search homes for sale at the New Jersey Shore)  

Tomorrow, Thursday and for the 2 additional Thursday’s through the Labor Day 2009 weekend, ‘we don’t need no stinking badges!’
 
The Borough of Beach Haven, on Long Beach Island, is making a last ditch effort to attract day trippers and mainland locals to the lovely beaches of this southern Long Beach Island community.

Thursday’s will be FREE BEACH DAYS in Beach Haven!  No (stinking) badges required.  It’s an effort to draw beach goers to the southern end of Long Beach Island to spend money they might have spent on a badge elsewhere in the community.
 
Most mainland locals, me included, don’t travel far during the summer months once we cross the Route 72 Causeway to the Island.  We tend to buy season beach passes in Ship Bottom, Surf City and Long Beach Township.  That way we cross the bridge, park the car and we’re on the beach!
 
Beach Haven Commissioners are hoping these free Thursdays will not only encourage visitors to drive the Boulevard south, but give badge checkers, who are mostly college students, a needed day off. 

Additional Long Beach Island info you might find helpful:

• Handicapped Beach Access on Long Beach Island
• Public Restrooms on Long Beach Island
• Best Beaches in New Jersey   

(The free beach Thursday’s (8/20, 8/27 and 9/3) applies only to the Beach Haven beachfront from 12^th Street to Nelson Avenue. )     

Buying a home at the Jersey Shore?  What you need to know about mortgage lenders in New Jersey and mortgage loans.

Getting a home mortgage loan might seem daunting these days.  There are choices you need to make, much like the choices you make in the type of real estate agent representation.

Generally, mortgage lenders in New Jersey fall into two categories, direct lenders and mortgage brokers.

Direct lenders, either a bank or mortgage banker, fund your loan upfront but will usually sell many loans in a package, so after closing there might be another company servicing your mortgage.

Mortgage brokers generally represent several lending sources and act as intermediaries between you and several lenders.

No matter your choice, find a mortgage lender in New Jersey you trust and feel comfortable working with.  Ask friends and family for referrals, talk to your real estate agent.  Learn as much as possible about the individual, his or her experience and the company he or she represents before moving forward.  Learn about the fees and costs of the loan product.

There are also several types of loans offered by mortgage lenders in New Jersey.  The most common are conventional, FHA, VA and USDA.

• Conventional Mortgage Loan - a common type of mortgage secured by collateralized property and not insurance or guaranteed by the government.  Because the loan is secured by collateral in the property at least 20% or more of the purchase is usually required for a down payment.
• FHA Mortgage Loan - a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA).  They are popular with first time buyers because of the low down payment requirements.  To use this type of mortgage for a condo, the condo development must be approved by the FHA.
• VA Mortgage Loan - a home mortgage loan granted by a lending institution to qualified veterans of the U.S. Armed forces or to their surviving spouses and guaranteed by the VA. It can be used to purchase on conventional homes, mobile homes, and condominiums.  To use this program, which provides 100% financing veterans must have a ‘Certificate of Eligibility’.  VA loans are assumable, with the approval of the Veterans Administration, and allow funding fees to be rolled into the loan.
• USDA Mortgage Loan is a home loan program offer by the Rural Development Authority in the US Department of Agriculture.  This program can provide 100% financing with no private mortgage insurance.  The home must be located in an area defined as rural by the USDA and borrowers must meet certain income guidelines.  As unlikely as it may seem, many areas in New Jersey qualify for USDA Mortgage Loan programs.  Click here to view property eligibility.

New Jersey has some specific mortgage loan assistance available through the NJ Housing and Mortgage Finance Agency (HMFA).

Live Where You Work (LWLW) – This program is a home mortgage incentive program that provides low-interest mortgage loans to homebuyers purchasing homes in towns where they are employed.  Check the HMFA website to see if the town you’d like to live in is covered by this program.

If you would like to buy a house in the town where you currently work, then LWYW might be right for you.  Employees benefit from attractive mortgage rates, more flexible loan application review and underwriting criteria, and reduced commuting times to work.  Municipalities benefit from having a committed workforce living nearby, and the activity and economic vibrancy that comes with people living near where they work.  Click here for the LWYW fact sheet.  

Home Ownership for Performing Employees (HOPE) is an employer guaranteed loan program that offers no down payment, below-market, fixed rate mortgages to eligible employees without private mortgage insurance. Employers must be approved by the HMFA.  Here is the HOPE fact sheet.

 Other programs through the NJ HMFA can be found here.   

So take some time to explore the internet, talk to friends and do some investigating to find a mortgage lender in New Jersey that you can work with, and that can provide you the information necessary to make the right decision on the type of mortgage loan for your Jersey Shore home purchase.

 This, Mortgage Lenders in New Jersey and Mortgage Loans report is part 2 of a 6 part series on home buying at the Jersey Shore. 

1. New Jersey Real Estate Agency Relationships 
2. Lenders and Loans
3. Homes and Communities
4. The Contract - Contractual Provisions
5. Offer and Acceptance - Attorney Review
6. Closing

 If you need an Accredited Buyer's Representative (ABR) at the Jersey Shore, give me a call! 

Keller Williams Realty – Atlantic Shore
Laura Giannotta, ABR®
609-384-6121
Laura@JerseyShoreViews.com

 GET YOUR OWN JERSEY SHORE VIEWS!

As if I didn’t feel old enough, the death of Les Paul and thinking back to the ‘Summer of Love’ at Woodstock, my good buddie Craig Rutman, the Apex of Real Estate in North Carolina sent me a note.

If you don’t know Craig he’s the ActiveRainer scouring the internet, visiting every site possible, so I don’t have to!

Well Craig, sent me a link this morning that curled my graying hair!

It was about Bob Dylan, song writer and performer extraordinaire, (please tell me you remember him).  He actually started his career in the folk scene in NYC in the early 60’s.  His idols were, of course, Woody Guthrie and Ramblin’ Jack Ellitiott.  Still foggy, how bout "Blowing in the Wind".

We’re not talking 40 years since Woodstock, we’re talking 50 years full of Bob Dylan music.

Fast forward to July 23, 2009!  A great day in Ocean County!  Bob Dylan will be playing at Blue Claws Stadium (home of the Blue Claws, surprising isn’t it?) otherwise know as First Energy Park in Lakewood, Ocean County.

Unfortunately, Lakewood’s not what it once was, so the performers had (?) to stay in Long Branch (Monmouth County, NJ).

I guess Robert Zimmerman, AKA Bob Dylan, needed to walk.  So he did..around a area of Long Branch many will say is not so nice.

Well, a police report ensues…suspicious character wandering around…

Guess who, Bob Dylan with no ID, two 20 something cops, and a trip back to Dylan’s hotel, because the 20 something’s didn’t have a clue!!  Click here to read about the whole episode, not mentioned yet in our local papers!

So tell me Mr. Dylan…How Does It Feel (Like a Rolling Stone) .

.  .

Me (left) and Tessie circa 1969 (missing her all the time) !

Buying a home at the Jersey Shore?  Congratulations…Let’s take a look at some of the things to consider before you sign on the dotted line.

1. New Jersey Real Estate Agency Relationships 
2. Lenders and Loans
3. Homes and Communities
4. The Contract – Contractual Provisions
5. Offer and Acceptance - Attorney Review
6. Closing

The current Real Estate Agency Law in New Jersey is relatively new.  Here’s a brief history of real estate agency law in New Jersey.  Prior to the 1995 every real estate agent worked for the seller.  The law setting up 4 types of real estate agency and disclosure of agency was enacted in New Jersey after a national study found state laws to be lacking.

New Jersey now has strict real estate agency laws, and requires real estate agents to tell clients upfront, before any “substantial contact”, how they’ll be working.  That means before a buyer begins to relate information about the type, location or price range of the property he or she desires or before a seller discusses his or her motivation for listing.

New Jersey Real Estate Agency relationshipsare detailed in the New Jersey Consumer Information Statement (CIS).  Law requires the CIS be reviewed prior to any discussions.  The full Consumer Information Statement can be found here. 

Briefly, there are four types of real estate agency in New Jersey.  They are:

• Seller’s Agentworks only for the seller.  The agent has fiduciary duties or legal obligations to the Seller.  These include care, undivided loyalty, confidentiality and disclosure.  Seller’s agents include all persons licensed with the brokerage firm authorized to list the property (more on this under disclosed dual agency).
• Buyer’s Agentworks only for the buyer. A buyers agent has fiduciary responsibilities to the home purchaser; care, loyalty, confidentiality and disclosure.
• Transaction Broker represents neither the buyer nor the seller.  They locate qualified buyers for a seller or suitable properties for a buyer.
• Disclosed Dual Agent works for both the buyer and the seller.  Prior to working as a Disclosed Dual Agent the brokerage firm must first obtain informed written consent from both the buyers and sellers.  A Disclosed Dual Agent in New Jersey MAY NOT, without express permission, disclose that the seller will accept a price lower and list, nor can the Disclosed Dual Agent disclose that a buyer would pay more than the offered price.

Disclosed Dual Agencyin New Jerseymost often occurs when a real estate agent with a firm is working as a Buyer’s Agent and shows the buyer properties owned by sellers who have listed their property with that firm.

Real estate sales persons in New Jersey act as representatives of their broker.  Therefore disclosed dual agency occurs when the buyer looks at ANY property listed by the same broker, not only properties listed by the agent.  Remember a disclosed dual agent can not put one party’s interest above another.

If real estate agency relationships in New Jerseyare still unclear, ask questions when you interview real estate agents to represent you.  Or, as in any step during the home buying process in New Jersey, ask an attorney.

Where can you find a real estate agent to represent you?  Ask friends and relatives who they’ve dealt with.  Research online, reading blogs and examining websites can give you a glimpse of the agent’s interests and specialties.  If you'd like an agent with advanced training in representing buyers, find an Accredited Buyers Representative (ABR®).  Check out this website to find an agent with the ABR® designation.

Prepare a list of questions that are important to you.  Ask about the agent’s knowledge of the area, what they’ll provide for you and their strategy for finding your next home.  Ask about continuing education (CE).  New Jersey has no CE requirements, so find an agent that takes continuing education seriously. Don’t be afraid to ask for references.  Speak to the agent’s previous clients to get a better idea of the agent’s strengths and weaknesses.

Just as a Buyer’s Agent provides ‘undivided loyalty' you, as a home buyer, should do the same. REALTORS® in most cases don’t get paid til they get to the closing table.  So you’ll want to find a buyer’s agent that you can work with and stick with them.

You can still search for homes on the internet, through friends or at Open Houses.  Just make sure it’s understood, You’re Already Working With An Agent.
 

The 'Hawkin Deli in Manahawkin brings real NJ deli taste to the Jersey Shore!

While New Jersey might be informally known as the Diner State, we do love our delis.  If you grew up in New Jersey, deli sandwiches are a way of life!

The 'Hawkin Deli is a relative newcomer to Manahawkin.  But it brings great deli sandwiches to the Jersey Shore.  Used to be the only deli available around here was from specialty shops (too expensive) or chain sandwich stores (too boring).

Located at 100 McKinley Avenue (the road running from Route 9, parallel to Route 72, behind ShopRite and Wal-Mart), the 'Hawkin Deli offers the usual hot and cold subs, plus specialty sandwiches, great for lunch or a fast dinner.

I’ll often stop for my mid morning breakfast sandwich, the New Jersey staple, Pork Roll, Egg and Cheese on a hard roll.  But my favorite sandwich at the 'Hawkin Deli is called the Sloppy Zo.

Now a Sloppy Joe is a well known deli treat in New Jersey.  If you’re thinking of the ground meat mess on a hamburger roll, you’re wrong.  A deli Sloppy Joe is ham, turkey, Swiss, Cole slaw and Thousand Island dressing all piled high on fresh rye bread.  Well, you can order that, but I recommend the Sloppy Zo.

The Sloppy Zo at the 'Hawkin Deli replaces the ham with thinly sliced roast beef, tops it with freshly sliced turkey, some Swiss cheese, Cole slaw and Thousand Island dressing sandwiched between two slices for fresh rye.  Mmm!

As if that wasn’t enough, this and all specialty sandwiches come with fries, or my favorite Tater Tots!   If you’re watching your figure, make any one of the great sandwiches a Wrap.  Or you can try one of the 'Hawkin Deli’s build your own salad.

Choose romaine, iceberg or Spring Mix with dressing and it’ll be $4.  You can add 3 toppings for $1.50 or 7 for $3.00.  Toppings include everything from walnuts to cauliflower.

The 'Hawkin Deli is also very community conscious.  When the Friends of the Barnegat Library (FOL), asked for help in providing our annual lunch for all Barnegat Library employees, they stepped up to the plate (bad pun) and worked with us on pricing and special orders! 

The Barnegat Library employees are still raving about that lunch 4 months later, and are hoping the next lunch the Friends of the Library provides during National Library Week comes from the 'Hawkin Deli.

The 'Hawkin Deli
100 McKinley Avenue
McKinley Plaza
Manahawkin, NJ 08050
609-597-6082

HOURS:
M – F 10am til 8pm
Saturday 8:30am til 4pm
Sunday 8:30am til 3pm

Homes for Sale in Manahawkin

Housing Market Trends

July, 2009

Take a look housing market trends in Manahawkin.  More homes in Manahawkin were listed in July and fewer sold than in June, and the number of listings to expire also increased in July.  With time running out on the first time buyer $8,000 tax credit , home buyers in Manahawkin should act now!  Inventory stands at 378 single family homes for sale in Manahawkin.

You can compare the figures above to those for the same period last year, to get an idea of housing market trends here in Manahawkin.  Prices are up, and the number of homes for sale in Manahawkin that sold in July, 2009 is up slightly!  Even better news is that the number of homes under contract in Manahawkin is also up!

There are still many great homes for sale in Manahawkin, and still time to buy before the first time home buyers $8,000 tax credit expires.  If you'd like to work with a local Manahawkin REALTOR®, an Accredited Buyers Agent (ABR), with an in-depth knowledge of homes for sale in Manahawkin, give me a call.

Take a look at this home in Manahawkin that my buyers just closed on, and will claim their first time home buyer $8,000 tax credit!

Keller Williams Realty - Atlantic Shore

Laura Giannotta

609-384-6121

Laura@JerseyShoreViews.com

GET YOUR OWN JERSEY SHORE VIEWS!

Search Homes for Sale at the NJ Shore