Purchasing a new home, whether it is your first home, second, vacation or investment property, or whether you’re a seasoned real estate investor or a first time home Buyer, is a serious and often scary prospect. In all cases, a Buyer is best served by retaining an attorney to represent their interests in reviewing and negotiating a real estate contract on your behalf.

Tips for the Buyer.....

• Don’t sign a Contract or Offer to Purchase a property unless there is a clear Attorney Review clause incorporated in same. A Contract without an Attorney review clause is binding once executed by both parties. If you are unsure, consult an attorney prior to signing.
• Look at a potential property at least twice before making an offer. Make sure you visit the property at least once during daylight hours (preferably between the hours of 5 pm to 8pm).
• A second visit allows you to look closer at the condition of the (1) walls - chipping paint/peeling wallpaper/holes, nail marks; (2) the windows - painted over/age/cracks/holes or missing screens; (3) gutters - gaps/hanging or detached from the property/missing leaders or down spouts; (4) condition of exterior of house - shingles/siding/brick; (5) carpeting, wood floors, tile, linoleum - chipped/stained/warped/damage; (6) bathrooms - toilet, tub and sink - mold/mildew, water damage/ caulking/water pressure; and (7) appliances - age/brand/condition.
• A second visit allows you to notice your surroundings better, i.e. the neighborhood, traffic, neighborhood "noise," children playing, and most importantly your potential new neighbors!
• Look for signs of possible water seepage/damage/leakage.
• Is the basement recently finished? Can you see behind the walls?
• Is there a working sump pump?
• French drains?
• Mold/effervescence or water stains on the walls?
• Does the Seller have any boxes or furniture stored in the basement in direct contact with the floor?
• Does the basement smell like mildew?
• Are their air fresheners or a cinnamon or orange order present? (A common trick used to mask a mildew smell is cinnamon or oranges.)
• All Sellers who have utilized a Realtor or Realty Agency to sell their home have been asked to complete a Property Disclosure Questionnaire that answers questions about the age, condition and operating systems of the property. Insist on seeing a copy of the Seller’s Property Disclosure form prior to making an offer. A Seller’s Disclosure Statement could have vital information about the property that may affect your offer price or whether you make an offer at all.
• Don’t be afraid to ask maintenance questions to the Seller. Be an informed consumer.
• When was the last time the boiler/furnace was serviced?
• When was the last time the roof was replaced/repaired?
• When was the last time the air conditioning system was serviced?
• Make sure to have a home inspection conducted by a licensed home inspector NOT a contractor or family friend. Only a home inspection from a licensed home inspector can be used when negotiating repair demands during the inspection contingency.
• Only use a licensed home inspector who will provide a detailed written narrative report - not a checklist or questionnaire/grid format.
• Realtors are not permitted to give legal advice and Realtors are not attorneys. Only listen to legal advice from your attorney.
• Inquire as to the type of heat utilized to service the property, i.e. baseboard, electric, gas or oil?
• Do not rush or follow an impulse when making an offer to purchase property.
• Call a lender or mortgage broker prior to making an offer on a property to confirm or ascertain how much of a mortgage you qualify for and also ask what the monthly payments would be, so you can determine what you can actually afford.

2. Underground Oil Tanks - is the tank insured? many insurance companies will not provide coverage on properties with an underground oil tank.

3. Asbestos insulation or wrapping, tiles, etc. - Asbestos is linked to harmful health conditions and should be removed or at a minium encapsulated.

4. Finished basements? Who did the work? Contractor vs. homeowner

Did the homeowner obtain permits? Possible insurance coverage issue if no permits were pulled or approved in the event of a tragedy originating in the basement.

5. Confirm what appliances are included in the sale. Often washer and dryers are not included and sometimes the refrigerator is excluded.

6. If purchasing a condo or townhouse or any property located in a homeowner’s or lake association, have the Seller confirm the dues or fees associated with same. Are the fees due monthly, quarterly, semi-annually or annually? Unexpected association fees can increase your monthly budget beyond your financial limit.

7. Recently painted or stained basements. - If too fresh painting or staining a basement could mask a water seepage problem.

8. Does the property have a tax abatement or assessment pending? Either can mean unexpected added costs either now or in the near future. Your attorney can explain in more detail - however inquire with your Realtor before making an offer.

Attorney review is unique to New Jersey. The concept is to permit interested Buyers to make an offer quickly, so as to prevent another potential Buyer from getting the property first. Attorney review clauses are only found in licensed Realtor contracts prepared by Realtors. Be cautioned not all real estate contracts contain an attorney review clause. Once a contract is signed, it is binding upon the party, whether or not it contains the protections the party may want.