PERSONAL INJURIES

INTRODUCTION

Unfortunately, accidents resulting in personal injuries are a common occurrence in our daily lives.  You can protect yourself by consulting our New Jersey personal injury attorneys if you suffer an injury or property damage as a result of an accident.

                                         EVALUATING YOUR CLAIM

To determine whether you have a claim, our New Jersey personal injury lawyers consider whether another person's conduct wrongfully caused your loss.  There are three kinds of wrongful conduct --- negligence, intentional misconduct and strict liability.

Negligence is the most common basis for recovery of losses from an accident.  The law holds individuals responsible for their own carelessness.  For example, drivers who neglect to stop for stops signs or doctors who fail to follow established medical procedures may be liable for negligence.

Recovery for intentional misconduct may result if someone has deliberately hurt you or your property.  For example, if someone deliberately hit you, detained you against your will, or  made false statements that injures your reputation., that individual may be liable for intentional misconduct. Individuals and companies may be responsible for damages on the basis of strict liability if they have engaged in dangerous activity, such as conducting blasting operations or keeping wild animals as pets, or if they have manufactured a defective or dangerous product.

WHAT IS YOUR INJURY WORTH?

You may be entitled to compensation for your medical expenses, lost wages, and the cost of repairing your property.  You may be also entitled to compensation for any pain, disfigurement, physical handicap, embarrassment, and loss of enjoyment of life, mental distress, emotional pain, and other psychological injuries.

FINDING SOURCES OF COMPENSATION

The time, effort and expense of a lawsuit are not ordinarily worthwhile if the person responsible for your injury does not have sufficient assets to pay for your damages.  Our NJ personal injury attorneys will help you determine what assets or insurance are available to compensate you. You can bring an action against all those who caused your injury.  For example, if a negligent person injures you in the course of working for someone else, that employer is often responsible as well.  Other parties potentially responsible for an auto accident may include the owner of a vehicle driven by someone else or even governmental authorities under certain circumstances.

  PRELIMINARY INTERVIEW AND INVESTIGATION

Our NJ personal injury attorneys will carefully interview you to learn the facts of the accident, who is responsible, the extent of your injuries and the amount of your loss.  After the initial interview, we will obtain medical records, interview witnesses, obtain police reports and other information to help prove your claim.

FILING A LAWSUIT

Our New Jersey personal injury law firm may be able to settle your claim and obtain compensation for you without a lawsuit.  Your claim may also be settled after a lawsuit is filed, or even after a trial.  If a lawsuit is necessary, we will prepare the documents necessary to file your claim with the court and gather the evidence needed to prove your claim at the trial.  The process of gathering evidence is called discovery.  It ordinarily includes the exchange of relevant documents, the answering of written questions known as interrogatories and orally questioning witnesses under oath before trial in depositions.  The pretrial discovery process can take many months to complete depending on the complexity of your claim.

If not settled, your case will go to trial after the completion of pretrial discovery.  It may take months or years to set a trial date depending upon the court where your lawsuit is filed.  Juries decide most cases that go to trial.  However, a judge may decide your case if it is required by statute or agreed to by the parties to the lawsuit.

PRESERVING THE EVIDENCE

Your claim is only as good as the evidence that supports it.  When an injury occurs, you should take notes on the circumstances of the accident, including the names, address, and phone numbers of witnesses, doctors and other medical care providers who treated you.  Our New Jersey attorneys need this information to determine whether you can prove your claim.

It is often useful to photograph or videotape the evidence of the nature and extent of you injuries and the damage to your property.  Photographs should be taken of your bruises, stitches or other visible signs of injury.  In the case of an auto accident, the vehicle should be photographed before any repairs are made.  After a fire in your home, take pictures of the damage.  You can help establish the date of the photos by keeping notes and having someone witness the taking of the photos.  These photos can provide valuable support for your claim.

Preservation of evidence is essential to the successful resolution of your claim.  If the evidence is lost or destroyed, it will be difficult to prove your case at trial.  The evidence should be stored in a secure place where it will not be damaged.  If the claim involves a defective product, retain, if available, the packaging and instruction booklet, as well as the actual product that caused the injury.

Our NJ lawyers may recommend that you keep a daily log of the medical and financial consequences of your injury.  In your log, you can keep a record of hospital stays, doctor visits, medical treatments, healing progress, medical bills, time lost from work, lost earnings and expenses incurred.

CONCLUSION

Under the law, others may be responsible for your injuries.  In case of such an injury, consult a lawyer as soon as possible.  It is important to act quickly to preserve your rights to compensation from those who caused your injuries.  Any inquiries that you receive should be referred to your lawyer.  Our New Jersey personal injury lawyers will estimate the value of your claim and help you collect fair compensation for injuries and damage to your property.

Common Negligence Lawsuits: automobile accidents, airline, bus and train accidents, assault and battery, athletic accidents, auto accidents, bicycle accidents, construction site accidents, defective product accidents, dog bites, drunk driving, false arrest, government negligence, hit and run accidents, hotel and motel accidents, household accidents, injuries to children, intoxication, legal malpractice, libel and slander, medical malpractice, motorcycle accidents, negligent supervisors, slip and fall accidents, unsafe buildings, utility company negligence, workplace accidents.   

WILLS

INTRODUCTION

A will avoids costs and complications for your heirs when your die.  Besides providing instructions about the distribution of your property -- like your home, car, investments and jewelry -- your will can provide instructions for payment of your debts, selection of an executor for your estate, and appointment of a guardian for your children.  Without a will, your property will be distributed according to state law and a court may select an administrator for your estate and a guardian for your children.  Our New Jersey probate lawyers will help you prepare a valid will that minimizes taxes and reduces the time and expense of handling your estate.

  DISADVANTAGES OF DYING WITHOUT A WILL

If you do not make a will, you have given up your right to decide who inherits your property.  Your property will be distributed according to state law, which might be quite different from what you would have wished.  For example, if you are married with minor children, in New Jersey your property will be divided between your spouse and children, even though you might prefer to set aside some property for the care of your parents.  In New Jersey, your property will be transferred to the state if you die without a will and are not survived by relatives, although you would have preferred to leave it to a friend of charitable organization.  In addition, without a will, you cannot disinherit heirs.

If you leave no will, you will lose the opportunity to select a guardian for any minor children and an executor for your estate.  Court-appointed administrators and guardians may not be the family member or friend that you would have chosen to handle your affairs.

Dying without a will can be costly and may complicate the transfer of your property to your heirs.  For example, the estate may have to pay bond premiums if there is no will stating that you do not require executors and guardians to post a bond.  In addition, estate administration proceedings without a will may delay transfer of your property to your heirs.

CHANGING YOUR WILL

You may need to change your will if you move into New Jersey, marry, divorce, have a child, acquire substantial property, or suffer the loss of a loved one.  Tax law changes may also require updating your will.  Read your will at least once a year to consider changes.  You can make changes by writing a new will or by preparing an amendment to your existing will called a codicil.  A new will is best if there are many changes.  A codicil may be appropriate for a small change, but it must be made with the same formalities as a new will - crossing out or writing inserts onto your will might invalidate it.

                                      APPOINTING AN EXECUTOR

You should appoint an executor in your will.  An executor locates heirs, lists property, pays debts, and distributes property to your heirs.  A relative or friend can serve as your executor, but you should consider using a professional executor (such as a bank or trust company) if you have a large or complicated estate.  An executor should be someone who is familiar with managing property, financial matters, and record keeping.  Before naming an executor, confirm that the person is willing to serve.  As noted above, your will can state that the executor is not required to furnish a bond, thus saving your estate this expense.

APPOINTING A GUARDIAN

If you have children under 18 years of age, you should appoint a guardian in your will.  Otherwise, if you and your spouse die at the same time without such an appointment, a court will select a guardian to care for your children and manage their inheritance until they become adults.  Your will can create a trust to control the property transferred to your children.  A trust is useful if you are concerned that the children may lack the maturity to handle their inheritance after the age of 18.   Our New Jersey lawyers can help you create a trust in your will that protects your children and your wishes.

KEEPING YOUR WILL IN A SAFE PLACE

Your will should be kept in a safe place so that it can be promptly located when you die.  Although you are not required to give your executor a copy of the will, you should tell both your executor and a trusted family member where your will is stored.

REDUCING THE TAXES ON YOUR ESTATE

Federal and state taxes may be deducted from your property before it is transferred to your heirs.  A federal estate tax applies if the value of your property exceeds a "unified credit".  In the year 2000 the "unified credit" was increased to $675,000.00 and it will automatically increase each year thereafter until it reaches $1,000,000.00 in 2006.  In addition, most states impose inheritance tax.  New Jersey estate planning attorneys LoFaro & Reiser, L.L.P.  can help you prepare an estate plan that will reduce these taxes.  For example, we  may suggest that you make gifts before you die to reduce taxes, hold property in joint tenancy with your spouse, transfer ownership of life insurance policies to your spouse or heirs, or use a trust arrangement.  Our NJ attorneys can also help you shift the tax responsibility among heirs if you would like them to receive shares without being taxed thereon.

REDUCING PROBATE COSTS

Probate costs include court fees, bond premiums and the fees for professionals who assist your executor with the administration of your estate.  The New Jersey probate law firm of LoFaro & Reiser, L.L.P. can help you reduce probate costs with estate planning tools like joint ownership, living trusts, lifetime gifts, and family limited partnerships. For example, our lawyers can prepare a living trust in which you appoint a trustee to distribute you property when you die.  Some estate planning tools can help you reduce probate costs, but they may not lower your estate taxes.

PREPARING YOUR WILL WITH A LAWYER

Our New Jersey lawyers can help you draft your will and explain the tax consequences.  We can also help you comply with the detailed requirements for a valid will, see that your property is distributed as you wish, and reduce estate taxes and probate costs.  The legal fees are usually well spent and often less than the added costs and taxes that would result from dying without a will.

CONCLUSION

You should have a will if you own property - a home, a car, bank accounts, stocks and bonds, retirement benefits, jewelry, clothing, household goods, and so on.  A will lets you distribute your property, as you want with a minimum of costs and taxes.  It is an opportunity to select an executor for your estate, a guardian for your children, establish trusts and dispense with costly bonds.  If you do not have a will, speak with one of our New Jersey lawyers  about drafting one without delay.  

                                       BANKRUPTCY

  INTRODUCTION

There are many reasons for financial difficulties, such as loss of a job, death of a breadwinner or too many credit card purchases.  Money problems can be emotionally wrenching and seriously damage family relations.

However disturbing the idea of bankruptcy might initially seem, in fact, bankruptcy laws are there to help those who are unable to pay their bills.  This article reviews your alternatives under the bankruptcy laws.  Our New Jersey bankruptcy lawyers can advise you about your options so that you can get the maximum advantage of the bankruptcy laws.

CHOOSING A BANKRUPTCY OPTION

There are two options under the bankruptcy laws: liquidation or a repayment plan.  The information that appears below pertains to the current bankruptcy laws.  Effective October 2005 the bankruptcy laws will be changing based on a bill signed by President Bush.   

In liquidation, also called a Chapter 7 bankruptcy, you sell your property and use whatever cash is generated to fully satisfy creditor claims.  You will be allowed to keep certain kinds of property under the exemptions allowed by federal and state bankruptcy laws.  The definition of "exempt property" differs in each state, and it can include clothing, furniture, and household appliances, tools of your trade and perhaps your home or car.  The trustee will also determine which of your property is exempt from sale to pay your debts.   Have a specific question about Chapter 7 bankruptcy?  Go to our . 

In a repayment plan, sometimes called a Chapter 13 bankruptcy, you pay a portion of your monthly income to a trustee for distribution to your creditors.  A repayment plan is useful when you are behind on your home or car loan.  The repayment plan can be used to extend, for up to 5 years, the time period for paying your bills and might allow you to pay less than you owe.  The extended payment period has the advantage of allowing you to make smaller payments.  You will be allowed to keep part of your monthly income to pay for living expenses like food, clothing, rent and medicine.   Have a specific question about Chapter 13 bankruptcy?  Go to our . 

To qualify for a Chapter 13 Repayment Plan, you must have regular income and your unsecured debts must not exceed $250,000.00.  If your unsecured debts exceed $250,000.00, you may qualify for a repayment plan under Chapter 11.  Bankruptcy proceedings under Chapter 11 are more complicated than those available under Chapter 13.

STARTING BANKRUPTCY PROCEEDINGS

Bankruptcy proceedings begin with the filing of bankruptcy forms at the federal courthouse.  The forms are comprehensive and include thorough lists of your income sources, property, debts and living expenses.

About one month after your bankruptcy forms have been filed, a meeting of your creditors will take place. You will be required to appear at this meeting with your records.  Although most creditors do not attend the meeting, those who do can question you about your income, property and debts.  The main purpose of this questioning is to confirm that the information in your bankruptcy forms is correct and complete.

DEALING WITH CREDITORS

Our New Jersey bankruptcy attorneys can help you deal with your creditors before, during and after bankruptcy proceedings.  Before starting bankruptcy proceedings, you are protected by laws that prohibit creditors from harassing you to collect money.  Bill collectors may not contact you at unreasonable times at home, and they may not embarrass you by telling your friends, relatives or employers about your debt.  Bill collectors may not contact you at work if they know that your employer disapproves.  If you have a lawyer, bill collectors may only contact your lawyer.

During bankruptcy proceedings, you will receive additional protection from bill collectors.  At the beginning of the proceedings, the court will order your creditors to stop their collection activities, including lawsuits, wage garnishments, repossessions and telephone calls demanding payment.  It is unlawful for your employer to fire you for seeking bankruptcy protection.

After the bankruptcy proceedings have been completed, you must take care when dealing with creditors.  Some creditors may try to collect debts that were discharged by the bankruptcy proceedings.  These creditors may ask you to renew the debt by signing an agreement to pay it.  Consult our lawyers when creditors contact you so that you do not inadvertently obligate yourself to pay an old bill that was discharged by your bankruptcy proceedings.    

WORKING WITH YOUR TRUSTEE

The bankruptcy court will appoint a trustee for your case shortly after the bankruptcy forms are filed.  In a liquidation proceeding, the role of the trustee is to sell your property and distribute the proceeds to your creditors.  The trustee can also set aside fraudulent transfers and preferential transfers made to creditors within the 90 days prior to the bankruptcy proceedings.  The trustee will also determine which items of your property are exempt from sale to pay your debts.

In a repayment plan proceeding, the trustee will collect payments from you and distribute them to your creditors.  The trustee is also responsible for approving any new credit obligations that you undertake before the completion of your repayment plan.

KEEPING YOUR PROPERTY

Our bankruptcy lawyers will advise you about the protection available for your property with a bankruptcy proceeding.  For example, in a liquidation proceeding, the bankruptcy law allows you to keep your exempt property.

Prior to beginning bankruptcy proceedings, our attorneys may advise you to sell some of your nonexempt property and use the cash to purchase exempt property.  Although you may convert your nonexempt property into exempt property, you will be subject to severe penalties if you try to hide your property.

Any property that you receive after 180 days from the start of the bankruptcy is yours to keep, including inheritances, gifts and life insurance.  Our bankruptcy lawyers may recommend that you speed up your bankruptcy filing if you expect to receive a substantial amount of property in the near future.

EFFECTS OF THE BANKRUPTCY

The end of your bankruptcy proceedings can provide you with a "fresh start."  The court order will end your responsibility for dischargeable debts.  The order will not affect non-dischargeable debts such as alimony, child support, educational loans, taxes, or debts that you incurred by deliberately injuring someone.  After the bankruptcy, your creditors may no longer try to collect the discharged debts.

Your bankruptcy proceedings will be noted on credit records for up to 10 years after your bankruptcy filing.  During that time, lenders, stores and finance companies may consider your bankruptcy among the many factors they review when you apply for a loan or credit card.  Surprisingly, since you cannot file again for Chapter 7 for 6 years, it may be easier for you to obtain a mortgage loan or installment credit for an auto or home appliance.  An application for such credit is much easier if you want to wait at least 1 year before applying for credit and show a history of paying bills on time after the bankruptcy.

CONCLUSION

You may need the protection of the bankruptcy laws if you are unable to pay your bills on time.  Bankruptcy proceedings can help protect you against aggressive bill collectors and preserve as much of your property for you as possible.

Our New Jersey bankruptcy lawyers will advise you about your bankruptcy options and help you make the best of your situation.  If you cannot manage your bills, contact us immediately to learn about your rights and avoid missing advantages that can be lost with the passage of time.                               

                                        COLLECTIONS

  INTRODUCTION

THE LEGAL ASPECTS OF CREDIT AND COLLECTIONS

To succeed, businesses must be paid promptly and in full.  With the help of our New Jersey collection attorneys, business owners and managers can collect promptly and protect their rights regarding credit and collections.

This section reviews the legal aspects of credit and collections, including credit checking, collection letters, and collection lawsuits.  It covers collection techniques that apply to consumer accounts and commercial accounts --debts owed by individuals and by companies.

ADOPTING POLICIES AND PROCEDURES TO IMPROVE COLLECTIONS

Carefully written credit and collection policies improve collections.  Your policies should cover procedures for using credit applications, handling billing, sending collection letters and making collection phone calls.  Our attorneys can help your company write credit and collection policies that will expedite payment of receivables and comply with debtor protection laws.

USING CREDIT APPLICATIONS TO HELP COLLECTIONS

Start with well thought-out credit applications.  The application should contain crucial customer information -- the name, address and phone number of the customer, the owners of corporate clients and credit references.  Complete names and address will ease collecting delinquent accounts.  Customers are willing to supply this information up front to avoid having to pay cash.

You can word the application so that your company has the right to collect interest when accounts are paid late and attorney fees incurred. A credit application can also ask for personal guarantees of the individuals behind corporate customers or the guarantees of the customer's partners or spouse.  This enables you to collect the debt from these other individuals if the customer does not pay it.

WRITING EFFECTIVE COLLECTION LETTERS

When your company cannot collect business debts from a customer, we will send a letter to the customer on law firm stationary demanding payment and warning of legal action if the debt is not paid.  Such a letter lets customers know that you intend to pursue your legal rights to collect the debt and is often enough to cause the customer to pay in full.

In some instances, the customer may respond to the letter by explaining why the debt remains unpaid.  The customer may have a justifiable claim for a bill reduction due to a product defect or late delivery.  Or the customer may want to pay, but lacks the money.  Initiating communication at the earliest possible time may uncover information about something your are doing wrong and help your with other customers.

Our collection attorneys can help you to resolve matters without a lawsuit by settling any disputes and arranging payment schedules.  We may also suggest that delinquent customers sign promissory notes, furnish collateral, and provide personal guarantees of payment.

WHEN A LAWSUIT IS UNAVOIDABLE

Sometimes a lawsuit is the only way to collect a debt.  We  may recommend a lawsuit after attempting to collect with a demand letter and investigating your customer's ability to pay.  For example, you may have to sue a solvent customer who refuses to pay without justification or who fails to respond to our letter and follow-up phone call.  If the customer is out-of-state and is not subject to jurisdiction of New Jersey's courts, we may recommend referring the matter to a lawyer in that state.  Be sure your credit and collection policy names the employee responsible for working with your lawyer so that critical time is not lost.

Commencing suit may cause the customer to pay.  In other cases, the customer may ignore the lawsuit, or hire a lawyer to defend it.  If the customer fails to pay after commencement of the lawsuit, we will take the necessary action to continue it, such as motions, discovery information and, if necessary, trial.  If the customer does not have a valid defense, the action should result in a court judgment in your favor.

COLLECTING YOUR JUDGMENT

The judgment may not be the end of the procedure.  After obtaining a judgment, our collection lawyers  will help you attempt to collect it.  The first step may be recording a copy of the judgment to obtain a "lien" against any real estate owned by the customer.  If the debtor still doesn't pay, we may find other assets of the customer, which the Sheriff can sell to pay your judgment.

In appropriate cases, we can help you to "pierce the corporate veil" and collect assets from a corporation's shareholders.  If the customer had transferred assets to others to avoid paying the judgment, we may help you cancel these transfers, sell the assets and collect your judgment.

RECOVERING YOUR MERCHANDISE

You may have a legal right to reclaim merchandise when a customer fails to pay immediately after it is delivered.  Particularly, when a customer declares bankruptcy, our lawyers can help you act promptly since you can lose your right to reclaim the goods if you fail to demand recovery within ten days or if the customer sells the goods.

Before selling to a customer whose financial condition is doubtful, ask us to help you take action to protect your right to collect.  We may suggest precautionary measures, such as taking a security interest, or utilizing collateral, or keeping legal title to the merchandise until you have been paid in full.

HANDLING FULL PAYMENT CHECKS

Sometimes a customer pays an account with a check for less than the amount due on the accounts and writes "payment in full" on the back of the check.  Your company's credit and collection policies should instruct employees to contact us before depositing such "payment in full" check.  In some cases, endorsing the check with the words, "without prejudice" can preserve your legal rights.  In other situations, your right to pursue the unpaid balance of a customer's debt will be lost if you deposit the check, regardless of how you endorse it.   Our lawyers can analyze the facts, advise whether you should return the check or cash it, and recommend steps to collect the unpaid balance.

LEGAL FEES IN COLLECTION MATTERS

Our law firm offers flexible fee arrangements for it's legal services in collection mattes.  For some case, it may be appropriate to pay a contingent fee based on a percentage of the amount collected.  In other cases, a flat rate or hourly fee might be best.  Sometimes we may suggest a combination of fee arrangements, like a contingent fee combined with a "lump sum" suit fee if it becomes necessary to file a lawsuit.  Once you agree on a fee arrangement, we will follow-up with a written retainer agreement to confirm it.

CONCLUSION

Our lawyers  can help you collect more quickly and avoid "writing off" uncollectible bills.  We will help you implement legally effective credit and collection policies, keep you out of lawsuits with out-of-court settlements, and act as your advocate when lawsuits are unavoidable.

                                   BUYING A HOME

INTRODUCTION

Home ownership can provide you with many benefits: secure shelter, a long-term investment and tax advantages.  However, a home is also a major financial commitment.  There are ways to avoid costly mistakes that can strain your budget and your patience.  This article contains tips to help you avoid problems when buying a home.

AFFORDABILITY

A home is the largest single investment of most Americans.  Often, the first question is whether you afford the home you want to buy.  At the time of your home purchase, when the legal title is transferred to you, you will have to pay for the home and closing costs.  Usually the bulk of the purchase price is paid with a mortgage loan. You will thereafter need to budget for insurance premiums, maintenance, monthly loan payments, property taxes, utility bills, and repairs.  To avoid surprises, examine the seller's bills to get an idea of the monthly expenses for the home.  Also check the age and condition of appliances, plumbing, roof, structures and wiring since they might need repair after your purchase.

  USING A LAWYER

We can help you through the home buying process by preparing or reviewing the purchase contract, advising you about financing and title insurance, answering your legal and tax questions, and arranging for the documents necessary to complete the purchase.  When you first contact us, you can ask for an estimate of legal fees and closing costs.

You should consult our attorneys  before or immediately after you sign a contract to by a home.  Although a printed form may be used for the purchase contract, we can make changes that protect you.  For example, a change in the form may give you the right to cancel the purchase (and get a refund of your deposit) if you obtain an unsatisfactory inspection report.

USING A REAL ESTATE AGENT

You may want a real estate agent to help you find and evaluate a potential home.  Many real estate agents participate in multiple listing services that enable them to quickly identify homes that might be suitable.  Also, an agent can help you complete the steps involved in a home purchase. Sometimes the agent represents the seller and the interest of the agent is in concluding the sale.  The purchase contract an agent prepares may not be favorable to you as one prepared or revised by our lawyers.

CONTRACT OF SALE

In New Jersey, the first document you sign is a Contract of Sale that contains the purchase price.  You should not sign a contract of sale unless it protects your rights.  Our attorneys can prepare the document or review a printed form agreement that you receive from your real estate agent.

DEPOSIT

Most contracts of sale provide for a cash deposit to show the seller that the buyer is serious.  It should contain details about who will hold the deposit and how it will be applied. If you don't go through with buying the home, you may lose the deposit.  We can advise you about the circumstances that affect your rights to the deposit.

CONDITIONS

Any conditions that must be met before you complete a home purchase should be stated in your contract of sale.  For example, many buyers make their home purchase contingent upon obtaining financing, selling their present dwelling or obtaining a satisfactory report from a home inspector.  Before you sign a contract of sale, our lawyers  can make sure it contains provisions allowing you to cancel the purchase and get your deposit back if your conditions are not met.

CLOSING THE PURCHASE

The "closing" of a contract of sale usually completes the purchase and takes place at a meeting in the office of an attorney.  At the closing, the buyer and seller sign and exchange the closing documents and the buyer pays the purchase price.  At this time, the buyer receives a title the keys to the house.   One of our attorneys attends the closing to ensure that the documents and computation of closing costs are correct.

CLOSING COSTS

  The closing costs are payable at the closing and include appraisal fees, attorney's fees, lender fees, prorations (insurance, taxes, and other items), recording fees (for deed and mortgage), survey fees, title examination fees, title insurance premiums and transfer taxes.  We can can tell you what to expect in closing costs and which are tax deductible.  If you obtain FHA, VA or other federally related financing, your lender must provide you with an estimate of its charges before the closing.

INSPECTION

Before closing, many home buyers hire a professional inspector to examine the structure, plumbing, wiring, appliances, heating and other systems for defects or needed repairs.  Be sure that the contract of sale gives you the right to cancel the purchase if the seller before closing does not correct defects or deficiencies.

TITLE SEARCH AND SURVEY

You receive "title" to your home when the seller gives you the deed at closing.  The title may be limited by easements or building restrictions that affect your use of the home.  Easements may give utilities or government authorities the right to use part of your land for electrical lines, gas lines, sewers or drainage.  Before closing, we can conduct a title search and advise you of any limitations that may interfere with your use of the home or affect its resale value.  This title search also will tell you if the seller truly owns the property and is capable of selling it to you.  Be sure to obtain an up-to-date survey of the property before completing your home purchase.  The survey may disclose encroachments that do not appear in a title search.

TITLE INSURANCE

Title insurance protects you against the financial loss you may suffer if there are encumbrances, easements or title defects that were not revealed in a survey or title search.  The cost of title insurance is usually paid at closing.  Your lender will probably require that you buy title insurance to protect its mortgage interest in the home. 

CONCLUSION

Your home can be a valuable investment and provide years of enjoyment.  You can protect yourself against expensive mistakes if you proceed carefully before signing a contract of sale and closing the sale.  If you are considering buying a home, ask our attorneys to handle your contract of sale and closing.

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