Attorney Review
Once the buyer and seller come to agreement, a standard sale contract will be drawn up by your REALTOR®. However, most REALTORS® are not attorneys and can not provide you legal advice. The buyer or seller may choose to have an attorney study the sale contract before it is finalized – in New Jersey this is known as attorney review. If an attorney is consulted, the attorney must complete his or her review within a three-day period. The contract will then be legally binding at the end of the three-day period unless the attorney disapproves of it. In some cases, the buyer and seller may choose to extend the three-day period. Learn more here.
Shopping for homeowner’s insurance
Just as you shopped around for a loan, it is important to do the same for homeowner’s insurance. As soon as you have signed a contract for your home purchase, you should begin shopping for homeowner’s insurance. Buyers should obtain the appropriate casualty and liability insurance for the property. Your mortgage lender will require that such insurance be in place at the time of closing. Occasionally there are issues and delays in obtaining insurance. Keep in mind that a “binder” is only a temporary commitment to provide insurance coverage and is not an insurance policy.
You might consider combining your home and auto insurance for a possible discounted rate. Also you might wish to inquire about Personal umbrella liability insurance.
It’s important to note that most homeowner’s insurance policies don’t cover flooding. Only a flood insurance policy will cover flood damage. Your insurance agent can tell you more about the benefits of flood insurance and in most cases, you can purchase flood insurance coverage from the insurance agent who sells your homeowner’s policy. The National Flood Insurance Program has a website to help you prepare and learn more about floods and flood insurance. To learn about your flooding risk and how to protect yourself and your property visit Floodsmart.gov.
Floodsmart.gov is an interactive website. You can enter your property information to find out your flood risk. Please note that FEMA is in the process of updating and digitizing the floodplain maps and some property information may not be available. If you have any questions, consult your insurance professional.
Learn more about insuring your home in New Jersey with information provided by the New Jersey Department of Banking and Insurance.
If you have additional questions or comments, please contact me here, by phone or email, on facebook and/or twitter. Next, Getting an home inspection and Closing the transaction.
Step #4 Finding your home and making the offer: http://ow.ly/14C1P
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