Real Estate Law

A listing agreement is a contract between the seller and the broker that stipulates the parameters and rights of the relationship. It is best to consult with an attorney before signing any legal document or contract. The listing agreement includes information on the following:

The price at which the property will be marketed

  The manner in which the property will be marketed

The commission the broker expects and when it will be earned

The length of the relationship between broker and seller

The length of time a house will be listed on the market. This could vary.

A broker is a professional who helps you buy or sell your home. Both buyers and sellers of residential real estate benefit from a broker. For example:

Many brokers are members of multiple listing services ( MLS ). Brokers subscribing to an MLS share their exclusive listing agreements with another broker to expose your home to more sellers.

Brokers are professionals. Brokers are required to be licensed and educated to help you sell or buy your home. You have a right to expect your broker to act honestly, competently, and with integrity.

The seller is usually required to make specific disclosures about the property. This includes:

Material defects within the seller’s knowledge – Many states require a seller who knows of a problem with the property to disclose the presence of this problem to the buyer. New York State has enacted a Property Condition Disclosure Law. If you are not provided with a full disclosure statement in most cases you are entitled to a $500 credit at the time of your purchase.
  Actively conceal material defects – Generally, a seller cannot actively hide a defect in order to attract a buyer to the property.
Buyer’s Duty to Inspect – Many States find that the seller does not have an obligation to disclose any defects before the deed is transferred. Thus, the buyer should hire someone to inspect the property for any defects that are not easily noticeable.
Inspection Contingency – The Buyer has an absolute right to conduct a property inspection by a qualified engineer or construction expert of the Buyer’s choosing at the Buyer’s expense. In New York, this inspection is generally done after the signing of a binder but before the contract is signed, while in New Jersey, this inspection is done after the signing of the contract.

An encumbrance is something that may prevent a buyer from taking the legal title or possession of the property. Most encumbrances are recorded at the county recorder’s office. These encumbrances can include mortgages and other liens as well as easements. A title insurance company should inform you of any such encumbrances on the property.

A buyer may not have enough cash up front to pay the entire purchase price for a property. A financial institution may be able to lend the buyer a portion of the purchase money and attach a mortgage to the property.