NJ000010 - Opinion 26 - New Closing/Settlement Requirements

Dear Associates:

By our Underwriting Bulletin No. 95-002 issued March 21, 1995, Richard Najarian provided you with an outline of the New Jersey Supreme Court's decision on Opinion 26 on the Unauthorized Practice of Law and a complete copy of the Court's opinion. Hopefully, you have had a ch...

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

Exhibit A

NOTICE

To Buyer and Seller:
You Must Read This Notice Before Signing the Contract

The Supreme Court of New Jersey requires real estate brokers to give you the following information before you sign this contract. It requires us to tell you that you must read all of it before you sign. Here is the information for both buyer and seller:

1) I am a real estate broker. I represent the seller. I do not represent the buyer. The title company does not represent either the seller or the buyer. Furthermore, both the seller and the buyer should know that it is in my financial interest that the house be sold and that the closing be completed. My fee is paid only if that happens. The title company has the same interest, for its insurance premium is paid only if that happens.

2) I am not allowed, and I am not qualified, to give either the seller or the buyer any legal advice. Neither the title company nor any of its officers are allowed to give either the seller or buyer any legal advice. Neither of you will get any legal advice at any point in this transaction unless you have your own lawyer. If you do not hire a lawyer, no one will represent you in legal matters either now, or at the closing. I will not represent you and the title company and its officers will not represent you in those matters.

3) The contract attached to this notice is the most important part of the sale. It determines your rights, your liabilities, and your risks. It becomes final when you sign it - unless it is canceled by your lawyer within three days - and when it does become final you cannot change it, nor can any attorney you may hire thereafter change it in any way whatsoever.

4) The buyer especially should know that if he or she has no lawyer, no one will be able to advise him or her what to do if problems arise in connection with your purchasing this property. Those problems may be about various matters, including the seller's title to the property. They may affect the value of the property. If either the broker or title company sees that there are problems and that because of them you need your own lawyer, they should tell you. However, it is possible that they may not recognize the problems or that it may be too late for a lawyer to help. Also, they are not your lawyers, and they may not see the problem from your point of view.

5) Whether you, seller or buyer, retain a lawyer is up to you. It is your decision. The purpose of this notice is to make sure you have some understanding of the transaction, the risks, who represents whom, and what their interests are, when you make that decision. The rules and regulations concerning brokers and title companies prohibit each of them from suggesting that you are better off without a lawyer. If anyone makes that suggestion to you, you should carefully consider whose interest they are serving. The decision whether to hire a lawyer to represent your interests is yours and yours alone.

I acknowledge receipt of the above Notice

Date:

__________________________________
Seller

Date:

__________________________________
Buyer

Exhibit B

NOTICE

To Buyer and Seller:
You Must Read This Notice Before Signing the Contract

The Supreme Court of New Jersey requires real estate brokers to give you the following information before you sign this contract. It requires us to tell you that you must read all of it before you sign. Here is the information for both buyer and seller:

1) I am a real estate broker. I represent the seller. I do not represent the buyer. The title company does not represent either the seller or the buyer. Furthermore, both the seller and the buyer should know that it is in my financial interest that the house be sold and that the closing be completed. My fee is paid only if that happens. The title company has the same interest, for its insurance premium is paid only if that happens.

2) I am not allowed, and I am not qualified, to give either the seller or the buyer any legal advice. Neither the title company nor any of its officers are allowed to give either the seller or buyer any legal advice. Neither of you will get any legal advice at any point in this transaction unless you have your own lawyer. If you do not hire a lawyer, no one will represent you in legal matters either now, or at the closing. I will not represent you and the title company and its officers will not represent you in those matters.

3) The contract attached to this notice is the most important part of the sale. It determines your rights, your liabilities, and your risks. It becomes final when you sign it - unless it is canceled by your lawyer within three days - and when it does become final you cannot change it, nor can any attorney you may hire thereafter change it in any way whatsoever.

4) The buyer especially should know that if he or she has no lawyer, no one will be able to advise him or her what to do if problems arise in connection with your purchasing this property. Those problems may be about various matters, including the seller's title to the property. They may affect the value of the property. If either the broker or title company sees that there are problems and that because of them you need your own lawyer, they should tell you. However, it is possible that they may not recognize the problems or that it may be too late for a lawyer to help. Also, they are not your lawyers, and they may not see the problem from your point of view.

5) Whether you, seller or buyer, retain a lawyer is up to you. It is your decision. The purpose of this notice is to make sure you have some understanding of the transaction, the risks, who represents whom, and what their interests are, when you make that decision. The rules and regulations concerning brokers and title companies prohibit each of them from suggesting that you are better off without a lawyer. If anyone makes that suggestion to you, you should carefully consider whose interest they are serving. The decision whether to hire a lawyer to represent your interests is yours and yours alone.

Acknowledgment of Receipt of Notice

To:__________________________________(Agent's Name)

Re: Title No.
Property Address:

This will acknowledge that a written copy of the above notice (or one substantially similar) was attached as the cover page of the contract of sale in this transaction and received by me prior to my signing the contract of sale. Further I was advised by the realtor to read it before signing the contract of sale.

Date:

Seller:__________________________________

Date:

Buyer:__________________________________

Exhibit C

REQUEST FOR PREPARATION OF DOCUMENTS

TO:__________________________________(Agent's Name)

I understand that in order to sell my property a new deed and affidavit of title must be prepared by an attorney. I realize that I can retain an attorney myself and request that he/she prepares the necessary documents. I do not wish to retain an attorney. I request that you have an attorney prepare a deed in the form prescribed in the contract of sale and an affidavit of title in a form acceptable to Stewart Title Guaranty Company. I understand that the attorney who prepares these documents will not represent me at the closing/settlement or give me legal advice relative to the transactions. I understand that his or her legal services will be limited to the preparation of these documents.

I understand that the cost for preparing these documents will be $__________ and I agree to pay such cost after the documents are prepared, even if, for some reason the sale of my property does not take place.

I realize that the attorney preparing the documents will need certain information to do so and authorize you to send him/her a copy of the contract of sale, a copy of my deed to my property, my survey of my property (if I have one), the title commitment and the following information:

(This information is necessary in order to prepare a affidavit of title)

Seller's Names: (1) ______________________________________

(2) ______________________________________

Marital Status of Sellers:

(__) We are not married
(__) We are married to each other. We were married on _________________, 19_____.
The maiden name of ___________________ was ____________________________.
(__) The property being sold has never been occupied as the principal matrimonial residence of
any of use.
(__) Our complete marital history is listed below (include any prior divorces, including the state
where the divorce was granted and approximate date, if the divorce decree is available attach
a copy).

Enter marital history here:

Seller:__________________________________

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