All Forum Posts by: James Lloyd

To my knowledge, there is no such thing as a 'lease deposit' in NJ.  I have never read any literature/statute relating to NJ landlord/tenant law using that terminology.  There is only a security deposit, rent, and fees (i.e. for a background check, pets, etc.).  When someone signs a lease you can only ask for the security deposit, 1st months rent, and any additional fee that may be due.  You can only collect $2,375 from this tenant (unless there is an additional fee not mentioned) of which 1425 is security deposit and must follow NJ security deposit law.  You cannot collect last month's rent as a 'lease deposit'.

Have you asked your attorney about a recommendation for a title company?  In my experience in NJ, Buyer's attorney typically provides recommendations about title companies to use in your area.  Since the attorney has a previous relationship with the title company they're recommending, you will usually get better customer service.  Good luck with your first property Chris.  

Rough estimates:

Attorney - between $1,250-$1,750 .

Survey (optional) - $750-$1,250.

Title insurance - Depends on purchase price and is set by law,  but lets just say $2000.

Settlement agency - $550.

Title Search  - $500-$600.

Miscellaneous (recording fees, etc.) - $400.

If you provide the settlement agent with more money than what is needed, then the remaining amount should be refunded to you a few days after closing.  

If Seller cannot deliver clear title to the property and the contract has to be canceled as a result, then review the contract because there may be contractually obligated costs that Seller must cover for Buyer.  

Best I can think of to hold the realtor accountable, talk to the realtor's broker (his boss) and let him/her know what happened and that its not good for business.  

There's a difference between itemized deductions (Schedule A) (most people do not take Schedule A, but you probably will if this deal is your personal home) and business expenses (Schedule C).  Your husband should report all verifiable business related expenses on Schedule C.  Net income from Schedule C will result in both income tax and social security tax.  If your husband did not send quarterly estimated tax payments, then there will also be interest and penalties involved.  Consult with your tax professional (CPA, HR Block, etc.) for the exact definition of these and what you should do.  The realtor may be well meaning, but the tax professional is the best person to advise you on taxes.

I am an estate attorney in NJ.  In my experience, you're not going to have a lot of luck with estates.  I've gotten a lot of letters for estate houses and responded to 0 of them.  

Usually I recommend to the family hiring a realtor/getting an appraisal, and therefore you're going to have to offer a fair price (aka something that really isn't a 'deal').  Then again, I'm mostly dealing with residential, single family homes.  

But if you're going to talk with anyone, talk with the probate/estate attorney.  The attorney will likely not have the same emotional hang ups that talking with the family/executor will have, and knows that unloading the property is an important part of the process if the family isn't interested in keeping it. 

What county is the house in?  If I don't know anyone in the county, then you can always call the county bar association for referrals.  

Also if it is an Estate house, the Seller is likely going to need an attorney also.  Someone from the family will have to be appointed administrator/executor to be able to convey title to you.  Your also going to want to see a copy of the Will (if there is one) to ensure that the person you've been talking to has (or will have) the power to convey title.

I would keep calling attorneys to price out different options.  For this, since you seem certain that the tenant will pay and therefore take less time, you may want to ask to put down a 1K retainer (it seems to be the number these attorney think it will cost) and you pay an hourly rate, which you negotiate.  Just be prepared to pay more than 1K if the tenant chooses to stay.  The retainer should be refunded to you once you pay your bill.  You can call the Hudson County Bar Assoc for additional referrals. 

I believe you have to be represented by an attorney for any papers filed in court because the property is in a LLC. Here is the link to the self-help center of NJ Courts, which includes landlord information.  The information you're looking for is on page 1 of the 'Info for Landlords' pdf.  You could still personally serve tenant with a notice of failure to pay rent and that would be included in any court filings.  

Good luck!

I'm sure there are other ways to handle it, but here is one:

Investors form a corporation, which loans the money to you.  The loan is secured by a mortgage on the property.  You pay the loan back to the corporation and leave it to the corporate officers to distribute the money to the investors (stockholders).  

Definitely would want to see an attorney if you go this route.