There is no hiding the fact that New Jersey had a slow recovery from the recession when it comes to condo sales when compared to New York City. Banks were unwilling to finance new condo construction and potential buyers often had problems finding financing routes. However, low inventory and the recent boom in NYC has sent the New Jersey market off again. In 2013 Hudson County condo sale prices were up 17.6% while Bergen County was up 24%. Northern New Jersey condos represent a pathway to the single family market for young families while on the flip side the New Jersey coast line provides for many a second home for the established family. Condo development in 2013 thrived up and down the coastline. Specifically from Cape May to Long Beach Island there were many developers getting back into the condo game. With so much new construction involving condominiums our New Jersey Title Insurance company has to be particularly careful regarding mechanics lien claims. The problem may arise when the developer starts selling units before the entire condominium project has been completed. With the help of our NJ Title Insurance company you may make settlement on that brand spanking-new unit and then find out a few months later that a contractor has filed a mechanics lien that may be valid against your home! This would lead to a claim against your New Jersey Title Insurance policy which could result in a costly battle for the underwriter. Potential losses could be high.
As a reputable New Jersey Title Insurance company it is our responsibility to ensure that all of the units in a newly-constructed condominium project have been completed and all work and contractors paid prior to our insuring your specific unit. Of course, that may not always be possible because there are still units that aren’t complete. In those instances, it may be possible to have your unit partially released from any potential claims in the future that involve the incomplete project. However, because mechanics lien laws are tricky, our obligation as a NJ Title Insurance company is to obtain specific approval from underwriter counsel should such a question arise. It is imperative to put us in touch with the sellers representatives early in the process so there are no unnecessary delays in the clearing of title.
How exciting it will be for you to own a sparkling, brand new condominium, constructed just to your liking. Don’t let a possible unpaid contractor ruin the early enjoyment of your new purchase put your trust in our experienced and knowledgeable NJ Title Insurance Company to smooth the way. We have New Jersey attorneys on staff available to answer your questions, so feel free to give us a call.
And if your new condominium is in a state other than New Jersey? Don’t worry, well help advise you so that the mechanic’s lien laws of that state won’t harm you either.
Leave a Reply