1. Find an experienced realtor. Nothing is more important for a first time home buyer (or a five time home buyer) than to select the right realtor to assist in finding a home and guiding a buyer thru the transaction. Selecting a realtor based on second hand references, social relationships, or factors not related to the experience, track record and reputation of the realtor is a recipe for disaster. Choosing the best realtor you can find will insure that the home you buy will be the home you wanted to buy.
2. Select an attorney who is experienced in real estate and familiar with transactions in the area where you are buying your home. It is a tremendous advantage to have an attorney who is knowledgeable about the community you have selected, the realtors in that community, and the other attorneys who practice in that community. Your attorney should be alerted to the fact that you may be in need of his services as soon after you execute the contract of sale.
3. Attorney Review - New Jersey is unique in that it is possible for both buyer and seller to sign a completed contract of sale, which in reality is not a contract at all. Until the Attorney Review Period lapses, or until the parties' attorneys agree to mutually accept revisions to the initial contract, anything can happen. You could even lose your home to another buyer. Therefore, It is critical to a buyer (and seller, for that matter), that you find an attorney who will quickly review, revise and communicate with the other side, so that attorney review can be concluded. It is okay to sign a contract prepared by your realtor. It is not okay to delay engaging an attorney to review and ultimately.
4. The home inspection. The quality of your home inspection is almost as important as the quality and experience of your realtor. No home is perfect. All homes have repair and maintenance issues. A home buyer must obtain as much information as possible about every aspect of the home before making a final commitment. Most real estate contracts provide for this contingency, and it is critical to select a home inspector who is knowledgeable about the homes in your community, and who will not pull punches because of his referral relationship with realtors. A smart home buyer will make it clear to both his realtor and to the inspector that he expects to receive a complete and objective report of the conditions of the home. It is then up to the home buyer to decide, with the help of the realtor and attorney, which issues to address with the seller, and which issues to deal with after closing.
5. The mortgage process. Since our economic meltdown, the mortgage process has become increasingly painful for all participants. Underwriting conditions are more onerous, home appraisals (which are a larger hurdle than ever before) take more time, and the entire process from application to closing is fraught with uncertainty. Many realtors, however, work with brokers who work very hard to expedite this process. Your realtor should be your guide to a mortgage person you can rely on.
At Ashenfelter, Slous, McDonough & Trevenen, LLP, in Montclair, New Jersey, we assist clients throughout North Jersey who need representation in real estate law, estate planning, elder law, divorce or other legal issues. We know how to quickly determine the next step in your case or transaction.
Contact our office by e-mail or call us at 973-718-7097 to discuss your situation with a lawyer.
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]]>When I meet someone and tell them that I am an elder law attorney, they invariably reply, "Oh, you do wills and trusts, right?" I then explain the difference between elder law and estate planning. Here's my answer. An estate plan covers the scenario of "what happens when I die". In the case of your assets, how will they be distributed and to whom. An additional emphasis is placed on minimizing estate and inheritance taxes through the use of wills and trusts.
But in today's world, increasingly, the bigger, more difficult question is "what happens if I live?" By that, we mean, what happens if I live but am not healthy and have increased health care costs and need to rely on others for assistance, either temporarily or on a permanent basis. The estate plan does not address this need. An estate plan can help you answer the first question, but a long-term care plan can help you answer the first and the second question.
Let's put it another way. An estate plan insures that if you have assets when you die they will be passed in the manner you wish. The key word is "if". The plan will not, however, guarantee that there will be anything left at that time to pass. Your assets could be mostly or entirely wiped out by a lengthy illness, hospital and/or nursing home stay, leaving your spouse and other heirs with nothing. That is the dilemma, in a nutshell.
So, when would you need an elder law attorney and when would you need an estate-planning attorney? If you have a level of assets sufficient to pay for long-term care under any scenario without running out of funds then an estate-planning attorney is most likely what you need. If, however, you cannot afford the $100,000 or more per year cost of nursing home care indefinitely, ($200,000 per year in the case of a married couple) then an elder law attorney should be consulted. In other words, can you pay that cost from your income, without dipping into your principal?
A real life example can illustrate the dilemma. Mary and Jim live in a home valued at $400,000 and have $350,000 in additional assets. Jim is wheelchair bound and needs assistance, which to this point Mary has been providing. However, in recent months, Mary has shown signs of confusion and forgetfulness. She went to her doctor who diagnosed her to be in the early stages of dementia.
An estate plan is important for Mary and Jim but it won't help them deal with the problems they are facing now. How will they afford the cost of nursing home care should either or both of them need it? Who will care for Jim - and Mary - when Mary's dementia reaches a more advanced stage? Can they remain in their own home with assistance or will they need to go to a nursing home?
Mary and Jim need a life plan to meet their needs going forward, one that is tailored to their particular situation. Mary and Jim need to consult with an elder law attorney.
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