According to the National Association of Realtors, realtors sold about six million in 2021 in New Jersey. The state saw a double-digit percentage increase in median sales prices, primarily because of high buyers’ demand.
Data shows a 17.2% increase in home values across the state, while the median sales price increased by 7.3%.
But whether you want to buy, sell or lease a property, you must follow the legal procedures and do extensive title searches to avoid complications. The best option is to hire an nj title agency with the time, expertise, and knowledge required to make the transaction smooth.
Doing that by yourself can be time-consuming, and you might not even have the required technical expertise. But what are some things you should check before hiring an agency? Why do you need their services? Read on to find out.
Why Do You Need a Title Agency?
Before buying a property, you must conduct a title search. For example, you must be sure the person from whom you are purchasing the property has a total ownership claim over it.
If you purchase a property with pre-existing problems related to its title, you might face legal and financial difficulties.
You might be unaware of some crucial information related to the property. An agency provides you with helpful information before buying or selling a home by conducting a thorough title search to look for issues.
The laws of New Jersey also make it mandatory for the seller to disclose specific information to the buyer before selling and recommend the buyer to search to avoid inconvenience afterward.
What Happens During a Title Search?
During the title search, the agency might look for taxes, liens, judgment attached to the property, easements, and delinquent taxes. For example, in New Jersey, a judgment lien remains attached to an indebted property for 20 years.
Further, the laws of New Jersey make it mandatory for sellers to provide the buyers with a copy of the Disclosure Statement. The Statement informs the buyer about the property’s conditions, defects, and other essential information.
Other Services an Agency Provides
Besides a title search, an agency in New Jersey also provides title insurance, which is crucial before buying or selling. It covers you against unexpected problems like liens and taxes.
The New Jersey Division of Taxation advises individuals to check pending tax issues before engaging in a transaction to avoid later complications.
For instance, as part of tax responsibilities, you should check whether the house has any impending sales tax. While selling a home, all sellers should provide a GIT/REP form and Affidavit of Consideration for Use by Seller (RTF-1) form.
An agency might also survey on your behalf to check for boundary issues, order flood certification, file a settlement notice, prepare the buyer’s Affidavit of Title, and present all mortgage documents to the buyer at settlement.
Is Title Insurance Compulsory?
While the laws of New Jersey don’t make it compulsory for property owners, lenders should have insurance. However, having insurance provides you protection from various issues.
Title insurance in New Jersey usually covers fraud, unresolved claims, incorrect marital status of the grantor, misinterpretation of wills, undisclosed heirs, forged deeds, and transactions conducted by an invalid attorney.
How to Choose an Agency?
Go with an agency with adequate experience to help you out in such matters. Check the services they provide and whether it includes searches, insurance, and New Jersey 1031 exchange services (valuable while selling a business property).
You might also ask them about the premium for the insurance, related policies, and other fees mentioned in the contract. It would be helpful to check if the company follows the American Land Title Association’s best practices.
You should hire an NJ title agency while buying, selling, or lending a property in New Jersey. They will ensure you buy a property free from legal complications that will cause problems later. From insurance to surveys, they will handle various aspects of the transaction.