Notice of Settlement protects buyers and lenders.
In New Jersey, the status of title and mortgages is officially established by the recording of documents in the County Clerk’s Office. For example, a home buyer will record his deed, which then places a copy of the deed within the real property record books for that county. The original deed is then returned to the purchaser.
How to protect against fraudulent acts?
New Jersey law permits the recording of a document called a notice of settlement to show the world that an owner is about to sell or mortgage their property. Lenders will require borrowers (usually through their title companies) to file a notice of settlement prior to the loan closing. The notice of settlement will include the name and address of the borrower, an identification of the property and the name and address of the lender.
Thus, if a notice of settlement for Lender A is recorded on June 1, from that date forward, Lender B is considered to have notice of the borrower’s intention to take a loan from Lender A. The recording of the notice of settlement helps to establish priority of recorded documents and to advise interested parties of ongoing transactions with respect to a particular property.
A notice of settlement is effective for a period of 60 days from date of recording, which means that the deed or mortgage mentioned in the notice of settlement must be recorded during that time period in order to enjoy the protection of this procedure. There is a renewal period.
A professional title agent knows how to protect you! Don't buy a home without title insurance.
For your real estate purchase or mortgage refinance or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Vested Land Services LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
or
1500 Allaire Avenue, Suite 101
Ocean, NJ 07712
or
1500 Allaire Avenue, Suite 101
Ocean, NJ 07712
Tel 973-808-6130 - Fax 973-227-0645
E-mail sflatow@vested.com
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