As regular readers know by now, there are many components to the wonderful world of real estate. As such, there are a few areas that are important, but small when compared to the bigger fields and not big enough to warrant their own topical article. Today we will randomly address a few such topics. Title is the essence of your real property. Your title report will tell you the condition of your title, but it is amazing how few people read their title report, and sadly, how few of their agents actually read their report during the course of the acquisition escrow. What can they miss? Well, we know of one recent report that disclosed the lack of access to a property… and they closed escrow. How can that happen? It isn’t in bold red underlined type; it is just another line in the report that so often goes unread. Another report we’ve recently learned of with an access issue is one where the access was a license, not an easement. It was listed as an exception in the report and was revocable. Guess what… it was revoked. We are talking about river front acreage with a good-sized home on it. Can’t get there from here without building a six-figure bridge over the river. In this case, you would have had to ask for the document, get and review it, and understand the potential consequences. Potential consequences can happen which is why insurance companies are so cautious and so should you be. Remember, title insurance companies are just that… insurance companies. They evaluate risk and make their decisions to insure accordingly. Home warranty programs vary and must be tailor made to the transaction. Don’t just rely on your agent to provide one, make sure about what it contains. Things like air conditioning and well pumps can be extra costs but are significant repair expenses if they aren’t included in your policy. Be sure, too, that the policy was ordered and paid through escrow. Sometimes this slips through the proverbial cracks through no apparent fault. Locking your loan has become important again. As interest rates rise and you are locked into a new build, or long escrow, you will find yourself with rising rates. Be sure you work with your lender about your loan rate lock. We will never forget the time many years ago when rates were rising, and the lender was talking with our buyer/borrower about it. He suggested that they lock, and she said “OK, go for it!” At the close, the rate was much higher. The borrower asked what happened and the lender said she didn’t lock it. She reminded him that she said, “OK, go for it!” to which he responded, “You didn’t say “lock it.” Pretty silly response for a lender that clearly malfunctioned. Make sure of your loan lock status. If you are coming from out of state, you may think that you cannot buy land that is landlocked, has no access. Understand that in Nevada, you can be landlocked. There is no legal resolution for your problem in most cases. You can, however, negotiate for access, but it isn’t something you can force. Be aware. There are ways to find potential access if you know where to look and what to look for. Just because it was offered in the MLS details doesn’t mean you will get it if you don’t include it in your offer contract. The same goes for the things the owner promised as you went through the property. It is amazing how many times they find friends or family that want the items they were including after you submit your offer. Be sure your agent writes your offer properly to memorialize your intentions and promises. Your real estate transaction has many components. Don’t just focus on money and time, pay attention to the details. That’s where the devil lurks. If you don’t understand, ask. You should understand what it is you are expecting, agreeing to, and receiving. When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, BS.3481, 775-781-3704. dpwtigers@hotmail.com
