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First you will typically have to find a real estate agent to help facilitate the purchase of your home. The agent is required to provide you with an agency notice that describes the scope of their assistance in the process.

Next you will put an offer in on a home. Once that offer is accepted a contract is signed. This contract is then forwarded to the purchaser’s and seller’s prospective attorneys for their review. During the attorney review period, each attorney can request changes to the contract.

How long does Attorney Review last?

Attorney review must begin within 3 days of the contract being signed by both parties, or else it is waived. Once either attorney requests changes to the contract, attorney review has officially begun. Typically, from start to finish, attorney review will last 2-3 days. However, it can last longer given the complexity of the transaction. During this period the attorneys will negotiate the contraction representing their party’s position as to the purchase of the home. Until all revisions are complete the contract is not final and either party may cancel the contract.

What happens after Attorney Review is concluded?

Once attorney review is concluded the contract to purchase is given valid legal effect and you will typically have 45 days to provide a mortgage commitment to the seller. You will want to stay in contact with your mortgage lender to make sure you are providing all requested documents to them in a timely manner. Title insurance will also need to be ordered for the property. You will want to have a home inspection done as well.

What does ordering Title mean?

This means that a title company will search the history of the property for any judgments, liens, delinquent taxes, encumbrances, issues with the seller’s ownership, or anything else that could materially affect your use of the property. If there are any liens on the property, they will need to be paid off before the purchase. You will also obtain title insurance.

What is Title Insurance?

This insures your title if issues crop up down the line. The insurance company will pay litigation costs and they reimburse you if you end up losing the property due to title not being clear. This is a very important step in the process.

Do I need a Survey?

It is highly recommended when buying a property that you also receive a survey of the property. This is an extra expense separate from ordering title, but it is very informative in telling you exactly where your property lines are, just in case there is any dispute in the future. A survey lets you know if everything on the property is included within the property line. As an example, if there was a shed that was on the property and was not within the property line, you would want the Sellers to move the shed prior to closing. Title insurance also guarantees the survey.

Next we will discuss inspections.

What are inspections and when do they need to be completed by?

It is highly recommended to obtain inspections on the property that you are planning to purchase. Home inspections protect a buyer’s investment. Most inspections will need to be completed within 10 or 14 days of the end of attorney review. Inspections will let you know of any defects of the property so that issues may be fixed before the purchase of the property is complete. Although a seller is not required to make repairs, most sellers work in good faith to remediate reasonable requests. This can either be done by a credit from the seller, where the seller credits you money during the closing so that you may complete the necessary repairs on your own post-purchase. It can also be done by the seller completing the necessary repairs prior to the closing.

Getting a Certificate of Occupancy

Each Township has its own set of rules for obtaining a CO. Some townships only require a smoke certificate. This ensures that there are working smoke/ CO detectors in the home and that there is a fire extinguisher near the kitchen. Other townships will inspect the entire home, including looking for repairs or upgrades that were made without permits.

When will the closing take place?

The closing will take place usually within 60 days after attorney review. You will have 45 days to receive a mortgage commitment. At the closing you will sign documents for your mortgage and receive a copy of the signed deed which transfers the home to you.

Are there tax benefits or tax disadvantages I should be aware of when purchasing a home?

You may want to consult an accountant or tax specialist to inform you of certain tax benefits or disadvantages that involve the purchase of your new home. Your closing attorney and real estate agent will typically not be able to advise you regarding taxes associated with the purchase of your home.

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What Are Title Searches For New Jersey Real Estate?

A title search for real estate is the process of examining public records related to the property and reviewing existing documents to confirm that the person who sells property is the rightful owner who has a right to sell it. Title searches for New Jersey real estate usually occur once a property owner and buyer sign a purchase agreement.

The purpose of the title search is to look for any claims or liens on the property that could affect the buyer’s purchase of the property.

How Do Title Searches Work?

Typically, title searches are performed by licensed title companies or attorneys. In most cases, it is the prospective buyer of a property who orders a title search because they want to make sure that the purchased property has a clear title.

In some cases, a title search may be ordered by a lender or another entity that needs to confirm someone’s ownership of the property. This may be the case when a financial institution needs to approve a loan that uses real estate as collateral.

The website of the State of New Jersey Department of State contains links to the property search database of each county.

What Happens After the Title Search?

Once all title searches for New Jersey real estate are completed, the title company or attorney will provide a comprehensive report to the prospective buyer or another interested party. The report will contain information about any liens, third-party claims, judgments, and other potential issues that may affect ownership.

If any issues are discovered during a title search, the prospective buyer and their lawyer will contact the seller or lender to notify them of the title issues. The purpose of the title search is to ensure a transfer of a clear title to the buyer. Once all the title issues are resolved, the parties can proceed to the closing process.

At The Law Office of Jonathan Fleisher, Esq., our knowledgeable and skilled attorneys can help real estate buyers in New Jersey perform title searches to protect clients against any future claims.

What Do Title Searches Look For?

Title searches examine public records to confirm the seller’s ownership rights and uncover any judgments, liens, delinquent taxes, or other title issues. Prospective buyers and other interested parties conduct title searches to discover the following:

• Judgments. If the seller of the real estate has experienced financial issues, collectors or other parties may have obtained judgments against them. Public records contain all judgments against property owners in the State of New Jersey. A title search will look for any unsatisfied judgments against the owner of the property.
• Liens. According to the Mortgage Bankers Association (MBA), total commercial and multi-family outstanding debt in the United States rose to nearly $4 trillion at the end of the second quarter of 2021. Many property owners in New Jersey and across the country have liens attached to their real estate, which is why it makes sense to perform a title search to ensure that the property is free of liens. Judgment liens authorize creditors to take possession of the property owner’s real estate if the owner fails to fulfill their contractual obligations. Liens could include outstanding loans that use the property as collateral. The purpose of a title search is to ensure that liens (if any) have been satisfied and removed at closing.
• Delinquent taxes. If the seller or property owner fails to pay property taxes before selling the real estate, the property title might not have a clear title due to delinquent taxes. The State of New Jersey or the Internal Revenue Service may also file a lien against the owner’s property for unpaid income taxes.
• Third-party ownership claims. Title searches for New Jersey real estate may also reveal that third parties have an ownership interest in the property. It is not uncommon to uncover third-party ownership claims when the administrator of a deceased person’s estate fails to have all parties with an ownership interest sign a deed transferring the property to one person.

A title search may also uncover other issues that may pose any potential threat to a future owner’s full right or claim.

How Long Do Title Searches Take?

Depending on several factors, it could take anywhere from a day to five days to complete a title search. The duration of the title search depends on such factors as:

• The availability of documents that must be reviewed when performing a title search
• The type of the property
• The examined property’s transaction history
• The existence of any judgments or unresolved liens attached to the property

An experienced attorney can help explain the process and estimate the time frame to perform a title search in your particular situation.

Contact a New Jersey Attorney to Perform a Title Search for Real Estate

Consider speaking with an attorney if you need assistance with conducting a title search and going through public records to determine if a property in question has a clear title. Title searches for New Jersey real estate can reveal various issues that could eventually jeopardize your ownership or cost thousands of dollars to resolve the issue. Our competent and qualified attorneys at The Law Office of Jonathan Fleisher, Esq. are prepared to answer your questions about title searches and assist you with verifying the legal owner of a property and discovering any potential issues. Call 732.360.6409 to talk about your case.

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What Is the New Jersey Revised Uniform Limited Liability Company Act?

The RULLCA was enacted on March 18, 2013. The enactment of the New Jersey Revised Uniform Limited Liability Company Act was the most significant change to state laws governing limited liability companies.

The RULLCA, which is codified at N.J.S.A. Title 42 Chapter 2C, applies to all LLCs formed after March 18, 2013. The revised act included provisions proposed by the National Conference of Commissioners on Uniform State Laws in 2006. The state law governs limited liability companies in New Jersey, the duties and rights of members, the manner in which LLCs are operated, and how profits are distributed, among other things.

Forming a Limited Liability Company Under RULLCA

The New Jersey Revised Uniform Limited Liability Company Act includes the following requirements for forming LLCs in New Jersey:

• Owners of LLCs must use the Application for Reservation of Name provided by the New Jersey Division of Revenue to reserve a business name.
• An LLC cannot be formed if it uses a name already used by another company registered in the State of New Jersey.
• The owner of an LLC can use a name already in use if they have written consent from the authorized representative of the business whose name is used.
• An LLC can use the name of another company if the name is listed as “inactive.” If the inactive company becomes active again, it will have to register a new name if another company takes its name during its inactivity.
• The name of an LLC must contain the words “LLC” or “Limited Liability Company.”
• A person who has authority to form the LLC must submit a Certification of Formation to the New Jersey Department of Revenue. The Certificate is the main formation document for LLCs in New Jersey. The date the Certificate is filed is considered the formation date of the LLC.
• LLC owners must elect their registered agent when completing the company’s Certificate of Formation. New Jersey law requires every business formed in the state to have registered agents.
• LLCs must file annual reports under the RULLCA. By failing to file an annual report or pay taxes, an LLC may be placed on the list of inactive LLCs. Such reports must contain the name of the company, the name of the registered agent, and certain other information.

If you need assistance with forming an LLC, consider speaking with our attorneys at The Law Office of Jonathan Fleisher, Esq. to ensure that your limited liability company in New Jersey meets the requirements under the RULLCA.

RULLCA Provisions That Affect New Jersey LLCs

The New Jersey Revised Uniform Limited Liability Company Act also contains a variety of provisions that may affect limited liability companies formed or operating in the State of New Jersey. These provisions include:

1. Perpetual duration. Limited liability companies formed after March 18, 2013, are presumed to have perpetual duration. Under the previous act, LLCs were set to terminate 30 years from the date of the formation unless otherwise specified in the company’s Certificate of Formation.
2. Operating agreements. Unlike the previous LLC law in New Jersey, the RULLCA does not require operating agreements to be written to be valid and effective. Under the RULLCA, operating agreements are effective even if they are oral or implied.
3. Member voting rights. Under the RULLCA, all members of an LLC have equal voting rights regardless of their ownership interest in the company. Ordinary matters must be decided by a majority of the members.
4. Management. In New Jersey, LLCs can be either manager- or member-managed. If there is no operating agreement, an LLC is automatically deemed member-managed, which means members will make all management decisions.
5. Profits/losses allocations. Under the New Jersey Revised Uniform Limited Liability Company Act, all profits and losses of an LLC must be allocated among members on a per capita basis.
6. Member rights upon withdrawal. When someone withdraws as a member of an LLC, the member’s management and voting rights will automatically terminate upon withdrawal, while the right to receive distributions will not automatically cease.
7. Fiduciary duties. Under the RULLCA, LLC managers owe certain fiduciary duties to members, including a duty of care and a duty of loyalty. However, an operating agreement may restrict or even eliminate certain duties as long as doing so is not unreasonable under the circumstances.
8. Member indemnifications. The RULLCA requires LLCs to indemnify and hold harmless company managers, members, agents, and employees under certain circumstances. However, an LLC may be allowed to modify or eliminate some or all of the indemnification obligations in an operating agreement.
9. Oppression. The RULLCA provides legal remedies for members who become victims of oppression. Thus, if a member is oppressed by an LLC manager or another member, they may pursue legal remedies. If a member or manager oppressed another member or acted illegally or fraudulently, the court might have authority to dissolve the LLC, appoint a custodian, or order the sale of membership interests, among other remedies.

Contact a New Jersey Attorney at The Law Office of Jonathan Fleisher, Esq.

If you are an owner of an LLC in the State of New Jersey and have questions about the RULLCA, consider speaking with a knowledgeable attorney who is familiar with the laws and requirements applicable to your specific case. Schedule a free case evaluation with our attorneys at The Law Office of Jonathan Fleisher, Esq. to discuss the application of the New Jersey Revised Uniform Limited Liability Company Act to your particular situation. Call 732.360.6409 today.

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Landlord-Tenant Laws in New Jersey

Landlord-tenant issues in the state of New Jersey are established by the State of New Jersey’s Department of Community Affairs. Within the landlord-tenant relationship, many issues may arise related to the rental of a property. These can include but are not limited to the below items:

• Security deposit and return concerns
• Rent increases
• Cable television issues
• Pet concerns
• Lease termination
• Right of entry for the landlord
• Eviction process and procedures
• Rights of tenants

Landlord legal responsibilities in New Jersey are often covered under specific laws that a landlord must comply with when renting out a dwelling. For example, landlord-tenant relations specifically are covered under the New Jersey Administrative Code NJAC 5:29. This form is required to be given to tenants by landlords in one or two-unit dwellings that are not owner-occupied.

Top 10 Landlord Legal Responsibilities

There are many things that landlords must do related when renting out a property. You may have additional questions or require further clarity on these items, and The Law Office of Jonathan Fleischer, Esq. is prepared to ensure your legal and financial rights remain protected as a landlord in New Jersey.

1.    Habitability

Tenants have the right to safe and clean housing. As a landlord, you must maintain your rental unit and keep it fit for residential living throughout the term of the lease. This also means that you are responsible for repairing damage to things that impact livability.

2.    Lead-Based Paint Disclosures

If you are renting a property that was built before 1978 it may contain lead-based paint. The federal government requires disclosure of any potential lead-based paint as well as the hazards associated with it to prospective tenants.

3.    Anti-Discriminatory in Renting

As a landlord, you will have a say in who rents your property. In certain situations, you can reject a potential applicant without it amounting to discrimination. For example, you can reject an applicant for bad credit history, negative referrals from past landlords, or an inability to be able to pay the rent on a month-to-month basis.

Under the Fair Housing Act of 1968, you may not discriminate against a potential applicant based on their race, national origin, sex, or other protected categories such as having a physical or mental disability.

4.    Obligation To Provide a Written Lease

A written lease provides a document that shows everything you and the tenant agree to related to the rental property, tenancy, and throughout the lease term. Leases typically include:

• Term of the lease
• Rental amount
• How often rent is expected to be paid
• What can be done to the premises while the tenant lives in the rental property
• How much notice must be given to terminate the lease
• Pet allowances

It is not advisable to let someone rent out a property you own without a written lease. Even if you trust and know the individual to whom you are renting, things may change over time. If something significant changes concerning the tenancy, you want to ensure that both you and your property are legally protected.

Having a written lease also protects a landlord if the tenant makes a legal claim against them. Writing down what was agreed to prevents a tenant from pursuing a claim made based on something that was allegedly promised or agreed to that may not be in the landlord’s favor.

5.    Provide Appropriate Disclosures

As a landlord, you will have certain information that you are legally obligated to disclose as part of the rental process. These disclosures can include but are not limited to:

• Existing damages to the rental property
• Rent control rules
• Shared utility arrangements
• Presence in a flood zone or any recent flooding

Landlords are encouraged to disclose anything that might affect the habitability of a rental property or the safety of a tenant.

6.    Adhere to Security Deposit Rules

Landlords may want to consider asking for a security deposit as part of the normal renting process. Usually, security deposits are returned at the termination of the lease provided that the rental property has not been damaged in any significant way. In New Jersey, landlords are not permitted to request more than one and a half times the monthly rental payment as a security deposit. In addition, if a landlord requests any additional security deposits in future renewal years it may not exceed 10% of any current security deposit.

7.    Follow Entry Rules

There are certain parameters around a landlord’s right of entry to a property that they own but have rented. Generally, landlords will want to obtain consent from the tenant before entering the premises. In addition, it is recommended that landlords disclose any need or desire to have a key as a landlord before the rental agreement is signed. This is because if there is no mention in the agreement of the landlord having a key then there is no obligation on the part of the tenant to legally provide one.

8.    Observe Eviction Guidelines

Even if a landlord feels strongly that a tenant needs to be evicted, they cannot simply remove someone from the property without adhering to the New Jersey guidelines on grounds for evictions. Before evicting a tenant, you must provide them with a Notice to Quit, which ends the tenancy and informs the tenant that they must leave. After providing a Notice to Quit a landlord may sue for eviction. Once a Judgment for Possession is granted a landlord may evict a tenant.

9.    No Retaliation Against Tenant

If a landlord ends up in a situation involving legal issues with a tenant, they are not allowed to retaliate against a tenant who may be exercising their legal rights. For example, if the tenant questions whether there is lead-based paint and a landlord has already disclosed that there is no lead-based paint, then a landlord cannot make it more difficult for them to live in the property by either increasing their rent or otherwise.

10.         Follow New Jersey State Rental Rules

If a landlord is in a situation where they would like to increase or change the rental amount, charge late fees, or are pursuing the removal of a tenant based on failure to pay, then they must adhere to all New Jersey rent rules to be in legal compliance and prevent a tenant from having a legal claim against them.

Contact an Experienced Landlord Tenant Attorney Today

As a landlord, you will be held to certain standards, most of which are clearly defined by New Jersey state laws or federal laws. If you have specific questions on what legal obligations you may have, The Law Office of Jonathan Fleisher, Esq. can help. Contact our office experienced team today at (732) 360-6409 for a free consultation.

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Do You Need an Attorney to Buy a Business in New Jersey?

Although it is possible to purchase a business without an attorney, working alongside an attorney that is knowledgeable regarding buying a business in New Jersey could help in a variety of ways. Typically, a buyer of a business will meet with an attorney at the very beginning of the purchase process. At this time, a buyer can discuss their overall financial objectives and timelines. By meeting early and defining objectives, a buyer may save considerable time and expense over the long run throughout the purchase process. While it is not a legal necessity to have an attorney to buy a business in New Jersey, our experienced business attorneys at The Law Office of Jonathan Fleisher, Esq. can help clarify any potential red flags in the sale and also recommend solutions to potential problems that might arise in each particular situation.

Experienced business attorneys can help in several other ways as a buyer makes decisions regarding purchasing a business, including:

• Representing a buyer in discussions with the seller or seller’s representative
• Preparing any confidentiality agreements that may be required between a buyer and the seller
• Ensuring that a buyer does not agree to a purchase deal structure before it has been vetted thoroughly for legal and financial reasons
• Fighting for your legal rights throughout the purchase process

Depending on your unique situation, a business attorney may suggest other forms of documentation that might be needed throughout the process. It is recommended that if you do decide to use an attorney that you consult with them early and as often as is needed throughout the purchasing process.

How Important Is Due Diligence?

When you are buying a business in New Jersey, it is recommended that you participate in a thorough and rigorous due diligence process prior to the purchase being finalized. Due diligence is the process of reviewing the sale and many other items in advance related to the transaction. Due diligence can include examining the following business records:

• Seller’s financial books
• Tax returns
• Employee structure and employee contracts
• Outstanding litigation or legal claims
• Employee benefit plans
• Vendor relationships and contracts
• Insurance coverage
• Real property or other assets owned by the seller

There may be other items as well that you might want to request and review in the due diligence process. Having an attorney throughout this time can help a business buyer understand all of their legal options and rights.

Additional Considerations for Buying a Business in New Jersey

Many experts recommend that sellers approach purchasing a business as you would starting one: consider how you would form each part of the company and think through whether anything appears to be legally or financially concerning. Below are a few areas of the business that you may want to pay special attention to throughout the buying process.

Financing

A key question that buyers will likely ask early in the process is how the financing for the transaction will occur when buying a business in New Jersey. There are many ways to structure a purchase agreement and working closely with a business attorney or financial advisor can help you understand all of your financial options.

Employees

Often, when purchasing a business it is very common for the company to have employees that will become part of the sale. This is important for continuity once the ownership has changed and ensures the new owner that the business will continue to operate without ceasing.

However, employees as part of a business sale are not always considered carefully. Buyers should discuss their desire for employees to be guaranteed as part of the business transaction, if that is their preference. The continuation of these employees once a property is purchased is not guaranteed and often requires conversations and commitment from these individuals specifically. Because of this, it is recommended to have these discussions as early as possible and to guarantee continuity once a sale is finalized.

Insurance

As part of the due diligence process, a buyer will want to ensure that they understand the types of insurance policies that the seller already holds. Insurance can impact the sale of a business and may potentially cause issues with financing so getting an understanding earlier rather than later of what gaps may exist is beneficial and will save a buyer time and money over the course of the deal and throughout subsequent ownership.

New Jersey Specific Laws

The State of New Jersey’s Division of Taxation has specific laws regarding how a business may be taxed based on how they are structured. The experienced business attorneys at The Law Office of Jonathan Fleisher, Esq. can work with buyers of New Jersey businesses to ensure that the purchase is legal and protects future assets while also complying with local taxation laws.

Regulatory Approvals

In addition to local laws, depending on the business that is being purchased in the state of New Jersey, there may be additional governmental or regulatory approvals needed. Each situation and sale is different and our experienced attorneys can guide buyers on what may be needed throughout your negotiation and purchase agreement.

Contact Our Experienced Business Attorneys Today

There are many steps to buying a business in New Jersey. Our experienced team at The Law Office of Jonathan Fleisher, Esq. can discuss how to approach a purchase in your specific situation. Contact our office today at (732) 360-6409 for more information.

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