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Title Insurance: Safeguarding Your Homeownership

Introduction:

Purchasing a home is a significant milestone for individuals and families, often representing a substantial investment of time, effort, and finances. During the homebuying process, one essential component that buyers should not overlook is obtaining a title policy. A title policy serves as a vital protection mechanism for homeowners, offering security and peace of mind regarding the ownership and legal status of the property. This article aims to outline the importance of a title policy when purchasing a home, highlighting its role in identifying and resolving potential title issues, mitigating risks, and ensuring a smooth and secure transfer of property rights.

Defining Title Policy:

A title policy is a type of insurance that safeguards homeowners and lenders against potential financial losses resulting from defects or issues with the property’s title. It is typically issued by a title insurance company after conducting a comprehensive examination of public records related to the property’s history, ownership, liens, and encumbrances. Unlike other types of insurance policies that protect against future events, a title policy insures against past events that could impact the property’s ownership.

Identifying Title Issues:

Obtaining a title policy is crucial as it helps identify potential title issues that may exist with the property. These issues can include previous liens, judgments, unpaid taxes, undisclosed heirs, errors in public records, illegal deeds, or fraud. By thoroughly examining the property’s title history, a title insurance company can uncover these issues and provide the necessary information to address them before the property is transferred to the new owner.

Resolving Title Issues:

In the event that a title issue arises, a title policy offers a layer of protection to homeowners. If a covered title defect or claim is discovered after the purchase, the title insurance company will work to resolve the issue or compensate the homeowner for any losses incurred, up to the policy’s coverage limit. This protection can be invaluable, as addressing and resolving title issues without insurance coverage can be costly, time-consuming, and potentially result in the loss of homeownership rights.

Mitigating Risks:

A title policy serves as an effective risk mitigation tool for homebuyers. By purchasing a title policy, buyers can transfer the risk of potential title defects to the insurance company. This means that if an unforeseen title issue arises in the future, the homeowner is protected financially, and the insurance company will bear the responsibility for resolving the issue. This mitigates the risk of significant financial loss for homeowners and provides them with the confidence and security necessary to proceed with the purchase.

Ensuring a Smooth and Secure Transfer of Property Rights:

Acquiring a title policy is an integral part of the homebuying process as it ensures a smooth and secure transfer of property rights. By conducting a comprehensive title search, the title insurance company verifies the ownership and legal status of the property, confirming that the seller has the legal authority to transfer ownership to the buyer. This step helps prevent potential ownership disputes, fraudulent transactions, or competing claims that could jeopardize the buyer’s rights to the property. Although not required by New Jersey law, title insurance is always recommended. Further, if you are a buyer and are obtaining a mortgage, your lender will require that you obtain title insurance in order to close.  Your policy will protect not only you, the Buyer, but also your mortgage lender.

Conclusion:

In conclusion, obtaining a title policy is of paramount importance when purchasing a home. It provides homeowners with valuable protection against potential title defects, helps identify and resolve title issues, mitigates risks, and ensures a secure transfer of property rights. By investing in a title policy, buyers can safeguard their homeownership, enjoy peace of mind, and embark on their homeownership journey with confidence.

IMPORTANT NOTICE

The information provided in the articles on our site is solely a public resource of general New Jersey legal information. It is intended, but not promised or guaranteed to be correct, complete, or up to date. This information is not intended to be a source of legal advice, nor is it suggested that you use it as a replacement for competent legal council. For Legal Services, call us at (732) 830-6464 or email our office.

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Buyers, Do You Really Need A Property Survey?

We respond to that question with a resounding “YES”! When purchasing a home, there are numerous important considerations that must be taken into account, including the location, size, condition, and price of the property. One critical aspect that should not be overlooked is obtaining a survey of the property. A survey is an essential tool that provides important information about the land and its boundaries, and it can help protect the buyer’s investment in the property. In this blog post, we will discuss the importance of obtaining a survey when purchasing a home.

What is a survey?

A survey is a detailed map that shows the boundaries of a property, as well as any structures, easements, or encroachments that may exist on or near the property. It is created by a licensed surveyor who uses specialized equipment to measure and map the property lines and other important features of the land. The surveyor will typically visit the property and use specialized equipment, such as a theodolite or GPS, to measure and map the property lines and other important features of the land.

Why is a survey important?

There are several reasons why obtaining a survey is important when purchasing a home:

  1. Property boundaries: A survey can help identify the exact location of the property boundaries. This is important because it ensures that the buyer is purchasing the correct amount of land and that there are no encroachments from neighboring properties.
  2. Easements: A survey can also identify any easements that exist on the property. Easements are rights of way or access granted to other parties, such as utility companies or neighboring landowners, and they can affect the buyer’s use of the property.
  3. Encroachments: A survey can also identify any encroachments that may exist on the property. An encroachment is when a structure or improvement, such as a fence or driveway, extends beyond the property line and onto a neighboring property. This can result in legal disputes and can be costly to rectify.
  4. Compliance with zoning regulations: A survey can help ensure that the property is in compliance with local zoning regulations. This is important because zoning regulations dictate how the property can be used and developed, and non-compliance can result in fines and other legal issues.
  5. Title insurance: A survey is often required by title insurance companies to provide coverage against any issues that may arise from boundary disputes or other property-related issues.

How to obtain a survey?

To obtain a survey, the buyer should hire a licensed surveyor to conduct the survey. If you are working with our firm, we have surveyors who work all over the state who we can recommend to you if you would like to call for a quote. The cost of a survey can vary depending on the size and complexity of the property, but it is a small fraction of the overall cost of the home purchase, and is well worth it in our opinion.

In conclusion, obtaining a survey is an essential step when purchasing a home. It can help protect the buyer’s investment by identifying property boundaries, easements, encroachments, and zoning regulations. A survey can also provide important information for title insurance coverage. By taking the time to obtain a survey, buyers can ensure that they are making an informed decision and can avoid costly legal disputes down the road.

IMPORTANT NOTICE

The information provided in the articles on our site is solely a public resource of general New Jersey legal information. It is intended, but not promised or guaranteed to be correct, complete, or up to date. This information is not intended to be a source of legal advice, nor is it suggested that you use it as a replacement for competent legal council. For Legal Services, call us at (732) 830-6464 or email our office.

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Intro to Land Use Law – Zoning Permits and Variances

Every town in New Jersey, under the Municipal Land Use Act, is required to adopt a comprehensive master plan and land use ordinance every 6 years. Each municipality must have a residential zoning law, commercial zoning law, industrial zoning law, open space zoning laws, public use zoning laws, and open use and agricultural zoning laws. As a property-owner, these laws and regulations dictate how you can use your property. A few examples of what is often dictated in the zoning laws include minimum and maximum sizes of properties, maximum height of buildings, and how close you may build to your property line (setback requirements). In order to build a new structure or alter an existing structure, for example, your home/dwelling, garage, shed, gazebo, or swimming pool, you must file for a zoning permit.

industrial-estate-land-development-PZMV444

 

What is a Zoning Permit?

A Zoning Permit is a document that is required for the construction of a new building or the alteration of an existing structure. It indicates that the purpose of what you (the property owner) want to build, and the details of that building/structure are in conformity with the town’s Municipal Zoning Ordinances. A Zoning Permit is the town’s way of ensuring that a prospective new project will “fit in” with the current community scheme, as stated in the town’s master plan. A zoning

 

What is the process of applying for a Zoning Permit?

  1. Go to local municipal clerk
  2. Ask for zoning office
  3. Tell him/her you need zoning permit
  4. Fill out and submit your zoning application – usually included with this will be a survey of your property, Application fees, and building plans.
  5. If the zoning permit is issued, you are good to go
  6. If denied, you have the option to appeal to the Zoning Board of Adjustment. Your denial will say why your permit application was denied and what you need to do to get approval for your project. This typically involves filing for a variance.

 

 

What is a variance?

A variance is an exception to the zoning laws and restrictions in a town. If a variance is granted, it will allow a property owner to use their land in a way that is outside of the specified laws and restrictions placed upon the property. There are several different types of variances, and which type of variance you need will vary by case.

Close up stamp on paper document to approve business investment contract agreement.

What are examples of situations that call for a variance?

A few examples of situations that could require a property owner to apply for a variance are if they have an undersized lot and want to build a home on said lot, or if a property owner wishes to build closer to their neighbors than is allowed by the zoning laws (they wish to build “within the setbacks”, or if a property owner wishes to build a home in which the height of the highest point of the roofline exceeds the height restrictions of the Zoning Code.

Small new build houses.

What is a “C” variance?

A “C” variance is one type of variance that relates only to the land itself. A “C” variance means there is something about the property that prohibits you from bringing it into compliance with the local zoning ordinances (wetlands, irregular shape, undersized lot). It has to relate to the property itself, otherwise chances of a property owner receiving that variance are much lower. Basically, when a property owner is asking for a “C” variance, they must show that something above and beyond the fact that you cannot maximize the use of the property, or that they  could enjoy your property more another way. In addition, the property owner must show no hardship or adverse negative consequences to neighbors or to the municipality.

How do I file for a variance?

If a property owner wants relief from a zoning law, they must file an appeal of your Zoning Permit denial to their local Board of Adjustment. First, they file the application, then they must give public notice to all individuals and property owners within 200 feet of the subject property. The Board of Adjustment in the town will require that a public hearing is held in which the neighbors and other members of the public in the town may attend and participate in. Those members are given a chance to voice their opinions, whether they are pro-variance or anti-variance. The property owner applying for the variance must put forward evidence and proof in front of the Board of Adjustment as to why they should receive a variance from the zoning law.

 

The law requires that the property owner produce legal evidence and proof to justify your variance request, if they fail to do so, the variance application will be denied. If there are objectors to the variance application, the town may not be in favor or your application and may throw in unreasonable demands. Many times, objectors to a variance will hire an attorney to introduce obstacles to the property owner’s application. This makes the process much more difficult.

Variance applications can be complicated both from a procedural aspect as well as substantively establishing the standard of proof.   An experienced land use attorney can help guide you through the process and properly provide the basis needed in order to obtain variance relief.

 

 

IMPORTANT NOTICE

The information provided in the articles on our site is solely a public resource of general New Jersey legal information. It is intended, but not promised or guaranteed to be correct, complete, or up to date. This information is not intended to be a source of legal advice, nor is it suggested that you use it as a replacement for competent legal council. For Legal Services, call us at (732) 830-6464 or email our office.

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Avoiding Disputes Before They Start: A Guide To Horse Leasing

The attorneys at Mylod & Fitzgerald aim to prevent lawsuits. The way we do this is by focusing on proper paperwork that limits the liability of our clients.

Emiline Mylod Fitzgerald and “Augustus”

Leasing a horse allows a person to experience the responsibilities and benefits of horse ownership without a permanent commitment. Equine lease agreements are popular in New Jersey, yet surprisingly, some people lease a horse based upon a mere handshake or use agreements which are vague and full of ambiguities. This exposes the parties to the possibility of costly problems down the road. A comprehensive lease agreement is necessary to facilitate the lease of a horse, and should be negotiated between the parties with the help of equine attorneys.

Jenna Bumm and “Step Right Up”          Photo Credit: Howie Shatzberg

A few things to consider when participating in a lease transaction:

  • Who is the owner and who is the leasee?
  • What is the cost of the lease?
  • What is the term of the lease? (Examples: Month-to-month, six months, yearly)
  • When does the agreement begin and terminate?
  • Who is responsible for paying for routine veterinary care and non-routine (emergency) care?
  • Where is the horse to be kept?
  • How can the horse be used?
  • What are the restrictions? (Jump height, rides per week, ect.)
  • What are the training and showing restrictions?
  • Can the horse be used for recreational trail riding?
  • What is the standard of care that the horse must receive during the lease?
  • Can the Leasor inspect the horse? If so, how often?
  • Who is the Leasee allowed to train with?
  • Is the horse insured with equine insurance during the lease?
  • What happens if the horse becomes lame mid-lease?
Kerry Duffy and “Princestana”

These are just a fraction of the considerations that should go into a lease agreement. It doesn’t matter if you are leasing a $1,000 horse or a $100,000 horse, a carefully worded written contract can prevent a legal dispute. The contact will ensure that both parties have the same understanding of the agreement being entered into. This will help to avoid a legal battle which will not be quick, easy, or cheap to resolve. The legal fees to prevent disputes through a solid lease agreement are minor in comparison to the potential legal fees in connection with equine litigation.

“Bhodium R” owned by Tori Rooney Claehsen

 

*All photos in this post are used with the permission of the owners*

IMPORTANT NOTICE

The information provided in the articles on our site is solely a public resource of general New Jersey legal information. It is intended, but not promised or guaranteed to be correct, complete, or up to date. This information is not intended to be a source of legal advice, nor is it suggested that you use it as a replacement for competent legal council. For Legal Services, call us at (732) 830-6464 or email our office.