Legal Hotline

Only the record owner must sign the listing agreement. However, it is always good to get both to sign the listing agreement, but the record owner will suffice.

A Landlord must allow the Tenant to renew the lease unless the Landlord has good cause for an eviction under the Anti-Eviction Act. (this does not apply to two or three-family owner-occupied dwellings, motels, hotels, transients or seasonal tenants). Yearly and month-to-month leases will automatically renew for another term unless a valid “notice to quit” is given by the Landlord or unless the Tenant gives notice to the Landlord that the Tenant will return possession of the premises to the Landlord. If the Tenant or Landlord does not renew the lease and the lease was for a term of more than one month and the tenant holds over (stays after the expiration of the lease), the tenancy will become a month-to-month tenancy, if the landlord continues to accept the rent and there is no other agreement between the landlord and the tenant. The tenancy is still subject to all the terms and conditions of the written lease other than its duration term. (State of NJ Dept. of Community Affairs)

Not if the attorney is representing the Seller. If the attorney represents the buyer, the attorney would have to use a title company for the closing itself unless the attorney was admitted to the Bar in NJ. It should be noted that local custom and practice is unique from state to state so retaining an out of state attorney could create a challenge.

It is a violation of the law (federal law) to put anything in a mailbox that is not stamped and delivered in the ordinary course. The item also should not be taped to the mailbox or lay on top of the mailbox.

An “arms-length transaction” is a typical transaction which is negotiated between he parties in good faith and guided by current market trends and forces. It often comes up in short sales where the mortgage company is accepting less then they are owed and they want the parties to sign an affidavit confirming that it was an “arms-length transaction”.

It is a reasonable request of the Landlord to ask for the full report. The Landlord would not violate any law or policy if he/she refuses to rent to that potential Tenant on that basis.

The Broker would bill the Seller a reduced commission based on the percent reduction, and then the Seller would then pass that reduction over to the Buyer as a concession on the closing statement. The full sales price is recorded, not the reduced price.

Not if he/she represents the Seller. Obviously, a Seller or a Buyer Is free to choose anyone, including a lawyer for advice. But if the lawyer represents the Buyer, he/she would need to retain a title company for the closing (settlement) itself unless he/she was admitted to the Bar in NJ

The highest offer may not always be the best offer. There can be contingencies and other issues. In addition, if the Seller, in good faith, comes to believe that their property might be worth more than previously thought, they should discuss with their listing agent about adjusting the price.

The tenant has the right to stay and renew (with reasonable modifications) unless the Landlord has statutory grounds, ie: non-payment of rent, breaking the terms of the lease by having more occupants then originally agreed upon. Some of these grounds require procedure forms such as “Notice to Quit” to be served on the Tenant to give them adequate notice. Landlord should consult with their personal attorney as to how to proceed.

Assuming the Buyer’s agent wants to benefit the Buyer and not the Seller, the Broker bills the Seller a reduced commission, and then the Seller, in turn, shifts that amount over to the Buyer as a concession on the closing statement.

The best practice would be to prepare only one Deed with 3 separate signature pages and 3 separate acknowledgments (similar to a notarization). The creating of 3 separate deeds would subject the Seller to 3 separate recording fees to the County (about $100 apiece); an unnecessary expense and effort.

Yes. The remaining tenant remains responsible to the Landlord for all promises and obligations in the lease. Of course, he/she would be entitled to sue the other tenant who vacated for his/her fair share.

Yes, typically but not always…the Seller who is staying after closing pays the Buyer an amount equal to the Buyer’s actual “carrying charges”, i.e., interest on Buyer’s new mortgage, property taxes, and Buyer’s homeowner’s insurance. Sometimes however, the agents work out other terms such as Seller agrees to a lower sales price if he/she could stay in the property for 2 months for free.

Every Seller must pay a Realty Transfer Fee on a property they own that they are selling regardless of whether they live there or not. Although it is substantial a senior citizen may get a discount if the property is his/her primary residence.

If the Owner/Seller is the one appointing the POA, there isn’t any clear and obvious conflict of interest. However, the agent should check with his/her office manager/broker first and also with his/her E & O insurance carrier to make sure there is no exception for coverage if he/she acts as a POA for a client. A buyer should not appoint the agent as the POA as the mortgage lender could object as there is a direct conflict of interest between the agent and the Buyer.

If a Seller fails the following 2 tests, there will be a 2% (of the Contract sales price) withholding from the Seller at closing. Although it is commonly referred to as an “Exit Tax” it is really not a tax but an estimated tax payment. If there is not a capital gain tax due from the Seller, it will be refunded to the Seller when they file their tax return or file another form with the State explaining whey there is no capital gains tax due and payable. If there is a tax payable this will be applied toward that tax.

The 2 tests are:

1. Is the Seller leaving the State of NJ? (on the applicable form, called a GIT-REP#) there is a spot to filling the Seller’s forwarding address.
2. Did the Seller live in the property for less than 2 years?

If the answer to 1 and 2 are both YES, there will be a 2% withholding, what many call an “Exit Tax”.

 

Yes..both husband and wife have to sign the lease agreement.