Can I Sign Nevada Banking Agreement

Can i industry sign banking nevada agreement

[Music] hi I'm Harvey blanco a brown blanco group Berkshire Hathaway HomeServices of Nevada we want to thank you for choosing the brown Blanco group for your real estate needs we have prepared this video for our clients so they better understand the documents we used and while we don't review every section of document we do try and clear up some of the most relevant concerns we are recording this video in March of 2020 that you're watching long after that date there are likely changes that have taken place with this document and this video may have some parts that are out to eat it also know that we operate in Southern Nevada that's home to specific to our market while you may be able to glean some value from this video please know that no two markets operate exactly alike and finally I need you to know that I'm not an attorney and none of what I'm saying should be interpreted as legal advice this is the residential purchase agreement this is a document prepared by Las Vegas Realtors our local board to help buyers present all their terms to sellers when writing an offer on a residential property here so let's just get right into it I'm going to talk to you about this document first it's on page 1 first of all it's ten pages so let's get started page one first we just talked about who the buyers are mister missus buyer they're identified here the property they're going to be purchasing the address is here in the following lines and the properties tax ID numbers right here then of course we have the offer price this case is $250,000 then this line just below identifying the buyer and the property you declare whether or not you're going to be a resident in that property area is going to be owner occupied and if not it's going to be an investment property these are this is an important designation and that a lot of the financing that we provide for buyers these days is specific to owner occupant or not so make sure you declare properly whether you're going to be residing in the property or intend to use it as an investment property moving on from there now at the bottom of page one we have all of the numbers involved in the offer first is the earnest money deposit in this case it's $4,500 and it's being presented with the offer excuse me the earnest money will then be deposited into escrow we'll come across that just a few moments additional deposit this is pretty rare but every now and then buyers and sellers agree that the I should put more money into escrow and that's where we would use that again very very rare this is the amount that the buy whoops this is the amount that the buyer is gonna borrow from a lender in this case we're doing an FHA loan oops keep clicking too much here this is gonna be an FHA loan and they're gonna be borrowing two hundred forty one thousand two hundred and fifty dollars simply identifies it beyond that we have here if the loan was going to be assumed it was an existing loan we would use that here that's pretty rare but if the interest rates start to go up we may see more of this beyond that we have if an owner was gonna carry papers for a buyer if the seller was gonna carry payment for a buyer we would put that here we would have of course have to add some significant paperwork to accommodate that financing addendum would have to be attached as well here is the balance of the purchase price or the balance of the down payment if you take this figure forty to fifty and add it to the earnest money forty five hundred you get eighty seven fifty which would comprise the down payment for this buyer and they all these numbers on this page would add up to the total at the bottom of two hundred and fifty thousand dollars that's page one at the bottom of each of these pages you're gonna see the names of the buyer buyer or buyers and you're gonna see the address of the property that they're purchasing then at the bottom of these page you'll also see a set of initials for buyers and for sellers now on to page two on page two we have that the new loan application in this case is going to be completed within two business days of acceptance this this means the buyer is gonna get the documents to the lender hopefully the buyer has already worked on getting these documents are getting their loan approved and then this would be the last piece of that puzzle so that I'm again I'm hoping that the buyer would have done a lot of work in advance of writing a software we would want to submit a loan approval letter with the offer when we send it over to the seller next we have some important contingencies first is the appraisal contingency and this with the case we've asked for twenty days to complete that which means that we not only have to have the appraisal done but if it did not come in at value we need the buyer and the seller to agree on how to a that is the buyer gonna come in with additional cash as a seller gonna reduce their price are you gonna meet somewhere in the middle how is that going to be resolved whatever resolution they come up with has to be done and agreed upon within 20 days and this line is very important you're gonna see this several times with all the conditions if the residential purchase agreement is not cancelled in writing owner before the appraisal deadline in this case the buyer shall deemed waive the appraisal continuously this means that if you don't get your appraisal done within 20 days and if it comes in low and you need to have it negotiated with the seller within that 20 days as well if not the buyer would like to have to ask for an extension and in that case ask for more time to get that done hopefully the seller would agree to it if not the buyer may have to cancel the agreement or put their earnest money at risk next would be the loan contingency in this case we've asked for 24 days and these are calendar days to approve the loan and this in this timeline the lender needs to complete all of the processes necessary to approve the loan again it has that same statement below it so if it's not done in that timeline the buyer will deemed to have waived that contingency if this was a cash purchase normally we would submit what we call proof of funds with the offer to show the seller that the buyer is able to pay cash for the property and this identified so if it was a cash purchase we make with zero or one business day there but just tell us how many days the the buyer will provide that to the seller if this property was contingent upon the the buyer selling their existing home in order to be able to buy this home we would mark this one here this we would check this box and then we would have to attach what's called a contingent upon sale addendum now this is a document that identifies all of the terms of the existing escrow hopefully it's an existing escrow that the buyer that the buyer needs to complete before they can complete this purchase if the buyer is selling their own home before they buy this when it needs the funds from that to do this the further along you are the better off you're gonna be and the seller will be a little less wary and more certain that you're going to be able to close the deal personal property a very important part of this document this identified all of the things that are going to stay with the home all of the items that stay all of the ceiling fans you'll see plumbing heating fixtures the appliances the only appliances that don't normally automatically state would be the refrigerator washer and dryer and those three in this case the buyers asked those to stay as well I want to point out an important part of this section that could get overlooked solar power systems if you have a solar power system and you're a seller and you don't own it outright and you're leasing it you're gonna need to counter this offer because this offer says that that solar power systems can be provided free of liens that it will be transferred to the buyer so know that if you do have a lease for that or any of the other equipment that's included in here you need to counter that out of identify to the buyer hey listen I need you to assume this lease going forward important part of this document opening of escrow in this case we're using equity Tyler Wendy Shaw we're simply identifying where we're going to be doing it close of escrow earnest money of course we talked about that before that's the money used to open escrow close of escrow in this case is about 30 days but note that it says one or before if the buyer and seller both agree that they want to close early they can but both have to agree you can once I can't just unilaterally say hey I want to close early if the other side doesn't agree they can't but they both must close by the 17th or ask for a subsequent extension if they can't close by that date the IRS will be informed the seller needs to know that they're probably be getting a 1099 for this title insurance will be provided by the seller to the buyer and in this case since we're doing a loan the buyers gonna have to purchase what's called a lenders policy in addition to their owners policy as well buyers due diligence in this case we're talking about 12 days the buyers asked for 12 days with which to complete their inspections the seller needs to ensure that all the necessary utilities are on and I would say that they need to stay on throughout the close of escrow and that's what it says here so utilities need to be maintained throughout the process the seller can then transfer them after close of escrow or at close of escrow for that the property inspection is to be done during the due diligence period the buyer has a right to cancel or resolve these objections within that due diligence timeframe but only within that time frame so it's important to note like this line here again buyer shall be deemed to have way the due diligence conditioned and when will they do that if they fail to cancel the agreement or to resolve with seller and the objections they have to the inspection that now all needs to be done in this case within the 12 days the 12 days is not just to do the inspections but it's to resolve any issues as a result of the inspection next we have all of the variety of inspections that the buyer can choose from in this case we simply chose a home inspection and then we chose to have a termite inspection the home inspection is a is a very basic but generic all-encompassing inspection for the property if in the course of doing the inspection the home inspector discovers issues beyond that they think they're important they might suggest to the buyer that they go ahead and follow up with a roof inspection although it's initially waived here the buyer could add it within that time frame within their diligence timeframe they could choose to add it and say hey you know what I want to do a roof inspection now - now if the accelerant agree to add that then the buyer could essentially cancel so normally that's not a problem certifications sometimes a buyers might ask for the seller to provide a certification even though it's not a warranty it does increase this yeah I guess the certainty that the job was done properly buyers request for repairs we just talked about that so this is just more than identifying that the brokers aren't responsible as the buyers responsibility to do it and the buyer needs to be satisfied this is that's an important element of this fees and probations now here's how we normally divide fees now I'm gonna say normally because all of these are negotiable normally we would say the escrow fees would be shared between the buyer and seller 50/50 that the seller would pay the transfer tax that the buyer would pay both the lenders title policy and the appraisal and that the seller would pay in fact the owners title policy everything else is to be prorated taxes HOA fees trash services all that stuff is be prorated as of the date of closing so at the data closing the seller is reimbursed for whatever they pay beyond that and then the buyer takes it over and and that's that again applies to all those other fees related to the transaction preliminary title report the buyer is entitled to see that within 10 business days of opening escrow the title company should provide that to them and always does we're already up to page 5 and cruising right along here at the top of page 5 this buyer has chosen to ask the seller to pay twenty five hundred dollars towards their closing costs so and that's including any woops that's including any mandatory fees that us that a lender may ask to provide which are pretty rare but they do happen so in this case the buyer sanctum cell look mister seller I'm a little short on cash I need you to help me with my closing costs understand as a buyer that you are in fact reducing the sellers proceeds when you do this is the money that comes out of thin air it's very important that you know that the seller is going to evaluate your offer based on this and decide whether or not it's financially still gonna make them hope it's gonna make them happy in certain markets these are very prevalent and available and sellers are happy to do it in other markets if it's leaning more towards a seller's market they might be reluctant to provide the buyer with any closing costs and they may look for another buyer who doesn't need them so just keep that in mind as you ask for these types of costs home protection plan in this case we're asking for a one-year warranty from Old Republic for up to five hundred thirty five dollars we're asking the seller to pay for that in this case transfer of title will be at close of escrow and close of escrow is defined here in Nevada for us as when the deed is recorded at the county at Clark County common interest communities this is HOAs so when we buy homes within an HOA in this case we are this seller needs to provide the buyer with the documents necessary to do so and we call that a resale package that resale package these who provides the buyer within 15 days of acceptance and then the buyer has five days with which to review it if the buyer elects to cancel that agreement they have to we have to deliver of that to the cellar and within those five days it's very very important let's see and if the buyer does cancel based on that they would get their money back now down here the there are related expenses of transferring a home from one owner to another within an HOA in this case we're asking the seller to pay all those fees it is negotiable it could go either way sometimes buyers will pay the capital contribution fee but these days it seems like we're most buyers are asking the Czar's to pay all those fees we're also asking the seller provide disclosures in this case of sellers your property disclosure form we have another video about that so if you're a seller and you're curious about the seller properties its larger form and how to complete it or if you're a buyer and you're wondering how the seller should have completed it feel free to take to check out that other video if that one that formed that was checked off that there was some construction defect claims then we would want an additional disclosure as well moving on to page six of course we're not allowed to discriminate Federal Fair Housing there's a walkthrough to be completed within in this case we're saying within three days of closing have to walk through the buyers gonna make sure that the home isn't basically the same condition as when they first saw it and that any repairs they requested were done to their satisfaction it's not the time to do a home inspection it's not the time to add things necessarily you're just making sure where things are pretty much the same or again the repairs were done properly to deliver your possession that's that close of escrow we said before just a moment ago the close of escrow here in Nevada is defined as when the property is recorded that doesn't mean when you sign papers it could be that day could be the next day it could be even a couple days later several things have to happen for that that to happen for that to go through the lender has to fund the buyer you have to bring your money to escrow as well and usually that's in the form of a wire because we're a good fun state and then all of that once that's all collected then everybody signed off then the the escrow company needs to run it down to Clark County and have it recorded risk of loss this basically says that if the property is damaged before closing it's the sellers responsibility to bring it back up and the buyer could cancel if the if it's damaged after closing it becomes a buyers problem the property this purchase agreement cannot be a sign unless both parties agree if the buyer wants a change who the buyer is add somebody or delete somebody the they have to get the approval of the seller upon cancellation of the grape as long as it's done within accordance and within the timelines and the yarns money should be funded to the buyer if not then the seller could be make a claim to it if the buyer is in some default and that's what it says here if there is some default if if there is some default in and there's not an agreement both parties would agree to mediation before a lawsuit has happened but neither party is for languishing their right to sue if the seller were to default the buyer could sue them for specific performance if the buyer were to default the seller is entitled to keep the EMD as their their mitigating damages I would say that it's important for buyers to understand that earnest money is significant to the seller only in the sense that first of all the seller doesn't want your earnest money they want to close the deal but if you don't close the deal the seller has been damaged they took the property off the market for a period of time when another buyer could have seen it and made an offer so that's the damage and plus there's carrying costs obviously for a seller during that timeframe escrow is a neutral third party you basically they're the bank they collect all the monies and the documents and then they distribute all the money's in the documents appropriately at the end if there were unclaimed funds at the end of the process and it was cancelled and the reservist money there they're gonna ask both parties to resolve that premise my use people quickly or they've reserved the right to start charging people to maintain that escrow as an open status brokers compensation fees this is a in at Berkshire Hathaway we call it a BAC fee it's $350 it's been the same number ever since I've been there nearly 20 years now waiver of claims this basically says that the property is being sold where is as is and that's what the buyer understands there's no implied warranties here now we have definitions and abbreviations there's lots of acronyms in real estate I probably used it you've been describing this if you need their definition they're here on page page 8 of the document signatures and deliveries this this basically says it's okay to use electronic signatures once documents are delivered to the other party to sidered received 10:31 property exchange this is only for investors if you're buying as an owner-occupant doesn't apply and if you want more information on 1031 property claims you need to call and we'll be able to walk you through that other essential terms this basically says time is of the essence and no changes should be made to this stuff to this agreement without being in writing anything that said verbally doesn't count well the first things we learned in real estate until it's written it doesn't count and it says it says a legally binding contract these capital letters old letters I mean it's important that you understand it if you don't we would encourage you to you know get the advice of legal counsel or an accountant or somebody you want to by all means do that but this is a document to use for virtually every transaction here in Southern Nevada there's no attendez addendums attached to this there's no additional terms made here down at the bottom we're identifying myself in this case is the buyer's agent and and I'm saying here that I am NOT a interested party I'm not a partner in this deal I'm not related to the buyer in any way we're giving the seller a deadline of five o'clock just a couple days from now to get back to us if they don't get back to us as of so the buyer we can move on oh if they don't get back to us within this timeframe basically we can assume that there's no deal now if they do take a little extra time we can extend that both parties could extend it I would think you'd want to do that in writing though with an addendum and now we get to the sellers response page which is on page 10 here we're done fighting the sellers agent which happens to be me again that's pretty rare though I will say in this case I'm representing both parties and so we would have a what we call a consent to act involved in this as well that's another form down here it says well and I'm a party to the transaction am I do I have an interest in my partner and/or do I have some relation to them to the to the seller this is FERPA this is if the seller is a foreign national it's very important that be disclosed if not there could be tax consequences to the buyer so very important we understand that down here the sellers telling us whether they accept whether they counter or whether they were check the offer if they countered it they'd send back a counteroffer and they're saying they agree to all the terms with this agreement except for those items that they've changed in the counteroffer this is where the seller would sign and date and that is our residential purchase agreement that is provided here by the Las Vegas Realtors our local board I hope this was informative for you I hope you found this video helpful feel free to review our other videos at wwlp.com once again thanks for choosing the brown Blanco group for your real estate needs that if you ever have any questions just call or text seven zero two two zero three one one six five [Music]