The Real Estate Closing Process in Las Vegas & Henderson.
It would be great if closing a real estate transaction was as simple as buying new clothes or shopping for shoes, just browse through the store, pick your favorite shirt and head to the register. But this just isn’t the case. Buying a home can be complex and involve as many as fifteen different people including real estate brokers, buyers, sellers, lenders, inspectors, appraisers, attorneys, and many times contractors. Because of this, most closings typically take between 30 and 45 days to complete.
The first step begins with submitting an offer to the seller and seller’s agent. The offer is prepared by the buyer’s agent and their client. This process in Nevada involves an initial offer from the buyer usually followed by a series of conversations and or negotiations with the sellers agent and the seller. Once an agreement is made the terms are written out in a purchase agreement, many times counter offers and sometimes an addendum which all parties sign. This creates a legal and binding contract between the buyer and seller.
Once signed by all parties, the agreements are sent to an escrow company. An escrow company holds and distributes all funds based on the legal documents signed by all parties. An escrow company does not represent the buyer or seller in the transaction, they are considered a neutral third party that simply follows what is stated in the contracts.
Before closing can happen, all of the conditions of the contract must be met. These conditions are referred to as contingencies. If financing, the most common contingency is the buyer’s ability to secure a new mortgage. This is the most time consuming aspect of closing a real estate transaction as the lender must verify employment , review the buyer’s credit report and review the buyer’s bank statements & assets. The lender will obtain an appraisal for the home to make sure that it is indeed worth what the home buyer is agreeing to purchase the home for. During this time the home buyer is strongly urged to have a home inspection performed to reveal any possible defects with the home or its systems. Also the buyer will receive what is know as a the Homeowner Association Package or Common Interest Community Package (CIC). This gives the buyer the opportunity to review the rules and regulations of the community. It is very important to review these rules and regulations since it could restrict the use of your home.
While the escrow is opened, a title company which works closely with the escrow company will be hired to conduct a preliminary title report . This report will provide a complete review of all of the recorded documents which could affect the deed to the property. Examples include easements, liens, tax assessments, covenants, conditions and restrictions, and homeowner association bylaws. The buyer and lender must approve of the preliminary title report prior to closing.
Once the conditions of sale have been satisfied, the preliminary title report has been approved and the lender sends loan documents to the escrow company, all parties will make an appointment to sign closing documents. In Las Vegas & Henderson this means that the buyer and seller will meet at the escrow office separately and sign documents . Once the documents have been signed, all documents will be forwarded to the lender, the lender will release the funds, and the sale will be recorded at the Clark County Recorder’s Office.
If all of this seems a little daunting, don’t worry. We will guide you every step of the way and will ensure that all contractual conditions are completed on time. If there are any issues during this process we will find a solution!