Las Vegas Nevada Closing Escrow
Contract to Keys... the steps
Once we have successfully completed negotiations on your new home and have a signed contract, a complex set of steps begins. Within 24 hours I will "open escrow". In other words, I take the contract and your earnest money deposit and give it to the escrow/title company. At the same time, I also send copies of the signed contract to you, the listing agent and your lender.
Most contracts contain contingencies that need our attention. One of the first contingencies is the Seller's Real Property Disclosure Form. This form should be given to us when the sellers sign the contract but sometimes we don't receive it for a few days. Once we have had a chance to review the seller's disclosure it's time to order a professional home inspection. We need to know right away whether there are any hidden defects to the home that the sellers and we have missed.
In the meantime your lender is submitting all of your paperwork to underwriting, and the escrow company is ordering a preliminary title report. And the listing agent is ordering a Home Owner's Association package, including CC&Rs and financial statements. Beginning to get the picture?
The "team" members are each performing their tasks in tandem. It will take a minimum of 2-3 weeks to complete this transaction. We could close escrow sooner if it was a cash transaction or if you wished to waive all your rights and inspections, but we don't want to do that... do we.
Home inspections always unearth some defects in a home, even on new construction. In most cases the sellers are willing to correct the problem but this involves some further negotiation, particularly if the problem is major, such as a defective air conditioning unit.
The lender will soon be asking you for the name of your home insurance company. If you are moving from out of state you will probably get the best rate if you negotiate for auto insurance at the same time.
Another type of insurance is a Home Protection Plan. I usually ask the seller to provide a limited one-year policy to cover the basic home systems such as electrical, plumbing and appliances. Since the seller is paying for this plan they have the right to select which company. The seller's agent usually orders the coverage.
Feeling well insured? Not just yet. The escrow company will also be issuing an ALTA title insurance policy, paid for by the seller, which insures that you are receiving good and marketable title to the property. Your lender will also require you to pay for a policy that insures them.
The lender will order an appraisal. If the appraisal falls short of the contract price there are 3 alternatives:
Even if the home is worth more, appraisals seldom come in at a higher price than required by the contract so don't be disappointed if it doesn't appear that you got the deal of a lifetime.
A few days before the close of escrow the lender will forward all documentation (docs) to the escrow company and they will contact you to make arrangements for you to sign. If necessary, this can be done by courier.
I usually try to arrange a Walk Thru Inspection a couple of days prior to closing. The purpose of this inspection is to insure that the home is in the same condition it was when we submitted the offer. If we find any problems at the walk-thru the sellers the have a couple of days to remedy the situation.
After all loan documents have been signed, they are sent back to the lender for funding. If an "i" has not been dotted or a "t" crossed, we could have a further delay. But assuming that all went well the loan will fund and the title company can record the deed. In Nevada, the home becomes yours when the deed is recorded at the Clark County recorder's office. This is often the day following the signing but can be later.
As you can see, the team needs to be rowing in sync. If anyone drops the ball, delays can occur. I have a team that is experienced and reliable and we constantly strive to make the process run as smoothly as possible.