The purpose of an appraisal is to protect the investment of the lender’s investors. Actually the lender bundles the loans and sells them on the secondary money market and often they are resold which is why the buyer must purchase an Alta Lender’s policy which assures that the lender is always in first lien holder position. This is why you may purchase a property and the check for the loan is made out to xyz company; eight years later, you receive notice it is to be made out to 123 company and then even later, you write your check to abc company. The mortgage notes have been sold. But I digress.
If you have a loan on the property, usually you must have an appraisal. The appraisal is nothing more than an opinion of value. Hopefully that is what your Realtor® has provided you; an opinion of value substantiated by homes of similar age, quality, size and amenities within a reasonable range. The Realtor® is very aware of the fact the property has to appraise. It does no one any good to put a high price on a property, receive a contract for that high price, and then have the property not appraise.
So what happens then? One of three things. Let’s say the property is priced at $275,000. The appraisal comes in at $260,000. The buyer is putting 10% down or $27,500 and carrying a loan for $247,500. Scenario One: The buyer can come in with the additional $15,000, the difference between the $275,000 and the $260,000 and put $42,500 down. But why would a buyer pay $15,000 more for a property than it is worth?
Scenario Two: The seller can lower the price to $260,000 on the basis that the property, according to the appraiser, is not worth $275,000.
Or Scenario Three: The seller and the buyer can meet someplace in the middle and each give up something, the seller can come down $7500 and the buyer can put down an additional $7500. It’s a re negotiation.
Or the seller’s agent can “fight the appraisal” but will generally loose, especially if it is a VA appraisal.
I had a property which sold immediately for $162,000 with a VA loan. The appraisal came in at $156,000. The seller went down $2,000, the buyer came up $2,000 but there was no meeting of the minds. We cancelled the contract, and put the property back on the market but indicated we would not accept VA financing. The VA appraisal stays with the property for six months and I did not want to constrain my seller to the $156,000 appraisal.
Within 48 hour, I had another contract, also for $162,000 but with a conventional loan. The appraisal was done within a week and a half of the first appraisal, and came in at, you guessed it, $162,000. And ironically, that same first buyer came back with another back up offer but of course the second buyer closed on the property within three weeks.
The lesson to buyers is simple. If you have a property you want, be prepared if the appraisal comes in low. Your agent should give you comps to support the price you are offering. Your agent may also know how other agents price: some price high, some price on target, and some give you about 3% to negotiate – often to account for the 3% concessions buyers often request.
The lesson to sellers is equally as simple. Your agent should price the property with supporting comps in a realistic range based on properties in the neighborhood of like kind which have sold. These are the same comps the appraiser will be using. Don’t fall for the old argument, price high, you can always come down. Generally that is a recipe for not selling your home, or a series of price reductions which will net you less than the price your agent originally suggested. Remember, the property has to appraise!

The Lender must issue Loan Status Updates, otherwise known as LSUs, when requested by either the seller’s agent or the buyer’s agent. The first page of the LSU is similar to the Pre-Qualification form but is issued after mutual acceptance of the contract.
The close of escrow date is specified, the name of the buyer, the name of the seller and property address as well as Assessor’s number, and the city.
It is page two however, which tracks the progress of the loan from the reception of the contract and all addenda from the buyer’s agent. Understanding these items which the lender must fill out with the date completed and his/her initials, marking each box a yes or a no, is a journey through the loan process.
Once again, the lender must assure that he/she has the buyer’s name, income, social security number and the address of the property, as well as the estimate of value of the property and the amount of loan requested. The lender verifies that the loan estimate has been sent and the buyer indicates his/her intent to proceed with the loan.
The lender receives a signed Form 1003 (http://www.mortgagesanalyzed.com/gyan/docs/fnma-form-1003/fnma-form-1003.php) which is the loan application form as well as all of the lender disclosures.
CFPB regulations now have the appraisal being ordered almost immediately and usually prior to the home inspection. In the “olden days”, pre CFPB, the home inspection was done first and then the go ahead given to the lender to order the appraisal. Buyer’s agents should now order the home inspection upon mutual acceptance of the contract as soon as possible.
Down payment sources are identified and the lender must review the Title Commitment to make sure there is no clouded title on the property, then the lender can lock the loan program, interest rates, points, and specify when the lock expires. Once the lock expires, that interest rate is no longer guaranteed and the buyer may have to pay a higher rate which potentially could prohibit him/her from purchasing the property since the total loan amount would exceed the amount of pre-qualification.
The appraisal is received and the property must appraise for the loan amount requested. We will talk about low appraisals in another blog tomorrow. If the appraiser has requested any repairs, the list must be provided to the buyer and the buyer and buyer’s agent must acknowledge receipt. These repairs must be completed and the appraiser must go out again and ascertain that the repairs have been done as a condition before the lender can issue documents for signing. The second trip is an additional expense to the buyer. These repairs are called PTD, prior to documents conditions.

The lender package goes to the Underwriter, the silent but powerful person in the back office. It is the underwriter who makes sure the conditions of the loan have been met and issues the final decree that the buyer has loan approval without PTD conditions.
The lender now orders closing documents and completes the closing statement, formerly a task done by the closing agent. This was called the HUD-1 and is now called the Closing Disclosure Statement. The lender reviews all, making sure all prior to funding conditions have been met and then orders funds to be sent to the escrow company. The buyer and seller sign the loan documents and another property has transferred ownership.

To see the new documents, check this website:
http://www.consumerfinance.gov/know-before-you-owe/compare/

With the October 3 implementation of the Consumer Financial Protection Bureau’s regulations governing mortgages and lending, additional requirements fall upon the lender. Serious buyer generally are pre-approved before they look at property. Most professional agents will insure their buyer has met with a lender so the buyer will not be disappointed down the line if he/she cannot qualify for the house wanted.
The Arizona Association of Realtors® Pre-Qualification Form has basic information required by the lender. This includes whether the buyer has consulted with a lender and if not, the buyer must declare  he has not consulted with a lender yet by checking the appropriate box.   If this is the case, chances are the seller will not take any offer submitted by the buyer very seriously, or will require that the buyer talk with a lender before considering the offer.
The lender declares his company,his/her name plus the Arizona License and NMLS number,along with the address, e mail, phone and fax numbers, signature and  date. The buyer must also sign and date the Pre-Qualification form and the buyer’s  legal name must appear in the first lines of the Pre-Qual form.
The lender must indicate the buyer marital position; married, unmarried, or legally separated and note whether the buyer is relying upon the sale or lease of a property in order to qualify for the loan,  and/or  whether the buyer is relying upon seller concessions to close the loan.
The type of loan and whether it is a loan a primary or secondary residence, or a non-owner occupied residence such as a rental is necessary plus the type of property; Single Family Residence, Condo, Townhome, Manufactured Home, or Mobile Home.
The lender must provide any FHA loan buyer with the pamphlet, “For Your Protection: Get a Home Inspection” as well as discussing assets, liabilities, and income, then obtaine a Tri-Merged Residential Credit Report.
After these discussions, the lender will calculate how much loan the buyer can pre-qualify, and make an assumption of the monthly principal and interest plus mortgage insurance, property taxes, insurance, HOA due, and flood insurance.  The lender will stipulate that the monthly loan amount not exceed x dollars with an interest rate not to exceed a specified percentage and must indicate whethert the interest rate is fixed, adjustable, and if there is a pre-payment penalty.
The buyer will have to provide specific documentation and the lender will check off if this documentation has been received. Buyers should bring to the lender, the last two paystubs, W-2 forms, tax returns for the past two years, corporate tax returns if applicable, documentation of the down payment and any reserves required, documentation for all sources of gift funds, documentation of credit and liability, and any other paperwork the lender may require.
Once this is done, the lender will provide a loan status update to the Seller and the brokers within ten days of mutual acceptance of the contract.

Time keeps on slipping into the future…and it’s hard to believe there are less than eight weeks left until we greet 2016 and say goodbye to 2015!
Anyone wishing to purchase a home with a loan during 2016 had better get on the stick and make an offer this week. With the requirements set forth by the Consumer Finance Protection Bureau, many lenders are requesting 45 days from start to finish for a loan. FHA and VA loans will definitely take that amount of time and 45 days takes us to December 24 if that offer and loan is applied for today. And then we run into the Christmas and New Year’s Holidays.
Buyers and sellers need to think about time frames. 45 days takes us into a month and a half. Some lenders can still do a loan in 30 days but the buyer needs to have his ducks in order and should obtain a list of everything the lender needs and get those documents to the lender as soon as possible. Ask your agent if he/she has a lender who can process and fund the loan in 30 days, some can, my lender can, but they require cooperation from the buyer.
We are on the Fed merry go round again, will they or won’t they raise rates? Fed action has an impact on home sales. With the increase in jobs reported last week, a lot of money in the know is betting the Fed will raise rates. Janet Yellen has hinted as much. For every percentage increase in interest, the buyer can purchase less house because more money is going to interest.
This does not just impact the buyers. Sellers too are affected. If a buyer has to pay more in interest, that leaves less money to pay for the house-i.e. net to seller. If you are thinking about buying or selling a home, this may well be the time to act. Time keeps on slipping into the future…

All Souls Procession, totally unique to Tucson, will bring celebrants from all over remembering their loved ones in art, music, food, and a procession. Emanating from El Dia de los Muertos, the Day of the Dead, a day of to commemorate those in our lives who have died, the All Souls Procession has grown to a full weekend event which ends with the burning of the urn filled with thoughts and messages to those who are departed.
Participants dress or wear clothing reminding them of the departed, either human or animal, and many carry photographs. The art work which people construct is amazing, with huge paper mache heads or intricate clothing. Workshops to create these masterpieces are held throughout the year.
Skull heads are artfully painted on the faces of participants and skilled stilt walkers proceed in the procession along the city streets as skeletons.
The air is electric with anticipation by observers, many of whom are also dressed commemorating the deceased, craning their necks to see the beginning of the procession. The drum beats echo through the dark night downtown area heralding the beginning of the procession. It is both exciting and solemn, and everyone carries his own personal meaning of this night remembering both good and bad of those who have died.
The weekend culminates in the Procession. Participants should arrive at 4 for the 6:30 start time for the procession. It will end at Mercado San Augustin just west of I-10 and Congress where the urn will be burned and Flam Chen will perform.
As the procession passes, observers can join the procession walking to the finale. This is a photographer’s paradise with varied emotions, colors, expressions. The link below gives detailed information as well as a video and photographs of this expressly unique Tucson event.
http://allsoulsprocession.org/

What happens if either the buyer or the seller fails to comply with the terms and conditions of the contract? The Arizona Association of Realtors® purchase contract makes provisions.
There is a “cure period” which is a three day period in which the party which defaults has to “cure” that default. The party which has been breached sends a “cure notice” to the breaching party stating they have three days in which remedy the default. If the non-complying party continues the default, breach of contract is assumed. The non-breaching party can request all earnest money as liquidated damages and may cancel the contract. The non-breaching party may also bring action against the party who has breached the contract through mediation and arbitration.
Provision is made for alternative dispute resolution and all mediation costs are to be paid equally between both parties. Unresolved issues will be submitted to binding arbitration and both parties will agree on the arbitrator in accordance with the American Association of Arbitration Rules for the Real Estate Industry. The decision of the arbitrator is final.
However, if parties do not want to go to binding arbitration where the judgment is non appealable, they may elect to go to court action within 30 days after the mediation conference.
Any action by the US Government such as Internal Revenue, Small Claims Court, Judicial or Non Judicial foreclosure or any lis pendens does not constitute a breach and are excluded from the Alternative Dispute Resolution. In the event that legal action is undertaken, the prevailing party has the attorney’s fees paid by the non-prevailing party.
Section 8 consists of 29 blank lines in which any additional terms and conditions of the contract can be written. If the buyer desires something to be removed from the property such as a pile of bricks, the agent would specify “bricks at northeast corner of property to be removed from property and area to be landscaped so bare ground is not visible,” or something to that effect.
When we think about real property, we know nature can take her toll. Between the contract acceptance and close of escrow, if there is a loss to the property, such as a tree falling on the house, and the damage exceeds ten per cent or more, either the buyer or seller may cancel the contract. If it is less than ten percent, the damage must be fixed and the terms of the contract can be enforced.
The price of the property is public record and the contract reiterates that. The contract is governed by Arizona law and time is of the essence. The parties, including the Realtors® must act in a diligent manner.
Compensation to the parties is through a separate agreement, usually the Exclusive Right to Sell, otherwise known as the Listing Agreement. If the buyer is paying his/her own commission, funds are to be collected at the close of escrow.
Copies and counterparts include faxed copies, Xeroxed copies, e mailed copies, other electronic type copies and generally electronic signatures are acceptable. The only form where counterpart signatures are unacceptable is the Lead Based Paint form. All signatures must be on the same form.
All days are calendar days and begin at 12 midnight, ending at 11:59 pm. If we signed something on Tuesday, the counting of the days will begin Wednesday at 12 midnight. If close of escrow is Friday, and signing must be three days prior to close of escrow, that signing must take place on Monday. Tuesday would count as the third day, Wednesday, the second day and Thursday the day before close of escrow.
The contract must be read in its entirety and include any addenda. The buyer has the right to accept subsequent offers but any subsequent offer is a backup offer and will only go into first position if the primary offer is cancelled.
If a party wishes to cancel the contract, this may be done by writing stating the notice for cancellation and delivering the notice to the Escrow Company as well as the other party. Delivery of notice can be by hand delivery, faxed, sent by electronic mail, or by overnight courier service.
Earnest money will be made out to the Escrow Company and should not be cash. The form of earnest money will be described such as personal check, cashier’s check, money order, etc., and the place of deposit is identified.
The seller and the buyer are indemnifying the brokers for anything they can discover about the property during the inspection period and this includes loans, insurances, or other investment information.
The last section of the contract identifies when acceptance by the seller is to occur. Until acceptance, the buyer has the right to cancel the contract.
The signatory page identifies all parties to the contract, the buyer, the seller, the buyer’s agent, and the seller’s agent. If a counter offer is to be issued, the seller will indicate that on the signatory page. If the seller rejects the offer, provision is made for that condition also.
Contract documents change from time to time and are not cast in stone. The Arizona Association of Realtors® and the forms committee has spent many hours laboring over this document and other documents which are made a part of the transaction. I have attempted to explain this contract so that you understand what you are signing.

stamp disclosure in red over white background

Section 4 of the Purchase Contract entitled “Disclosures” is one of the most important segments of the contract and does the most to protect buyers from both seen and unseen problems with the property.
The Seller’s Property Disclosure Statement, otherwise known as the SPDS, is the sellers testimony to what they know about the property and what has occurred on the property while they have owned it.
The buyer and the buyer’s agent should read the SPDS carefully because there may be tip offs to potential problems which may not be noticeable. The buyer can ask for further enumeration of any item on the SPDS and this is also a good tool to be used by the Home Inspector.
Items of material fact must be disclosed, such as a roof leak, the presence of polybutylene plumbing, structural problems, wood infestation, electrical or environmental problems, sewer and wastewater treatment problems, high noise area, flooding, water damage, or the manufacture of meth. The SPDS can be used in a court of law to illustrate that the seller was covering up a problem. Legally required disclosures are mandatory and non-disclosure is considered fraud.
The seller, when filling out the form, should not guess. If he/she does not know the answer to a specific question, he/she should say unknown. That will alert the buyer to do some further investigation for the answer to that particular question. The SPDS is an important document referenced in the Disclosure section.
Very often, agents will put the SPDS, the Lead Based Paint Disclosure, and the Insurance Claims History on the Multiple Listing Service so that any potential buyer considering that property has access to as much information as possible prior to making an offer.
The Insurance Claims History, also known as the CLUE report, provides insurance history for the property for the past five years or the length of time the seller has owned the property, whichever is less. The seller can ask the insurance company for “a letter of experience” which details any claims made. The buyer can determine what, if any, problems are with the property including burglary. The seller should be able to get this letter from the insurance agent free of charge.
Any property built before 1978 must have a lead based paint addendum initialed and signed by the seller, the buyer, the seller’s agent, and the buyer’s agent. This is federal law and the penalties for noncompliance are very stiff. The buyer may investigate for lead based paint at his/her own expense. Most properties built prior to 1978 may have lead based paint which has been covered by a non-lead based paint.
Young children in the tenements on the east coast often would “gum” the window sills while looking down at the street. The incidence of mental dysfunction was noticeable and the federal government determined that ingesting lead based paint caused mental retardation. FHA buyers must be given the lead based paint pamphlet, “Protect Your Family from Lead in Your Home”.
Property in Tucson is identified by metes and bounds and by plat. Identification by a plat would be a typical subdivision, Rainbow Sunset Subdivison Lot 33. Metes and bounds uses Township, Range and Section, such as PTN W240.33′ E374.04′ S1050.61′ SW4 NW4 4.13 AC SEC 27-11-9.
If the property is in an unincorporated area- that is out of the City of Tucson and in the county- and five or fewer parcels are being sold, the seller must complete and have notarized an Affidavit of Disclosure. The seller is attesting to the presence or non-presence of utilities, type of road, septic or sewer, legal and or physical access to the property and other pertinent information. This resulted from the state trying to curb wildcat subdivisions when people purchased homes and then realized there was no water or the piece of property was considerably smaller than they believed.
The Affidavit of Disclosure must be signed by the buyer as well as the seller and it is recorded by the escrow officer with the paperwork transferring property from seller to buyer. The buyer may disapprove any of the items on the Affidavit within the inspection period or five days after receipt of the Affidavit.
There is an entire section on Due Diligence which I will discuss within the next two days and should be considered in conjunction with this section.
If there are any changes made to the SPDS during the period the property is in escrow, the seller has an obligation to notify all parties of the change. For instance, there is a hail storm and as a result there is roof damage. The buyer has five days after this notification to disapprove the contract and withdraw.
During the period of the escrow, the seller warrants that he/she will maintain and keep the property in good repair so that all mechanical systems are working at the close of escrow. The property is to be conveyed in the condition it was in when the buyer first made an accepted offer on the property. This includes all appliances, pool systems, special electrical systems, or other systems attached to the property. The seller will remove all personal property and debris from the property. I once wrote a contract which included “all dog feces to be removed from property and all holes filled.”
There are warranties which survive closing which include the fact the sell has notified the buyer of all latent defects which materially and or adversely impact the value of the property. Any payments in the previous 150 days to contractors regarding the property have been paid by the buyer, and that information concerning wastewater treatment is current and correct.
The buyer must warranty to the seller that anything which might impact his/her ability to purchase the property has been disclosed and that the buyer has done all inspections and accepts the property at the close of escrow. If the buyer is relying on verbal representations, they must be disclosed in writing.

subterranean termite tube

It is imperative that the buyer performs “due diligence” on the property, especially if purchasing the property “AS IS”.
The inspection period is ten days from mutual acceptance of the contract. All days are included, that is calendar days, not working days or week days. Encourage your agent to schedule the home inspection as soon as possible in case other inspections may be needed.
The buyer can inspection for virtually anything at buyer’s expense: environmental, physical, specifics such as roof, HVAC, pest and in Tucson, termite, sewer or septic

connection, information about the neighborhood, CC and R’s, and or other pertinent information. During this period of time, the buyer should be making sure information is being given to the lender for loan approval if not otherwise obtained, that he/she can obtain insurance on the property, that health and safety codes have been met.
In Arizona, the seller’s agent does not have to disclose if the property is in the vicinity of a sex offender, if the property was the site of a felony, death, suicide, and/or murder. The buyer can investigate for these conditions if they are of material concern. In checking these items, the buyer should consult the Arizona Buyer Advisory which is a compilation of links where a buyer can obtain various information which may impact his/her desire to proceed with the property purchase.
The buyer’s responsibility is to provide the seller with copies of all reports obtained at no charge.
If square footage is important to the buyer, or size of rooms of significance for furniture placement, the buyer must complete these investigations during the ten day inspection period. Military people coming from Germany often have a shrunk and it is important to measure the wall space and the size of the shrunk since often, the room is not large enough.
Tucson has two types of homes, those that have termites and those which are going to get termites. Most of our termites are subterranean termites and the cost to treat is generally less than $500. Many lenders will not release loan documents (conditions to close) unless the termite treatment has been done. Generally VA and FHA loans will need termite treatment if called termites exist. Proof of treatment will be required.
The buyer’s agent should check to determine the property is not in a flood plain zone. Although Tucson is desert, there are plenty of areas which are deemed flood plain by the Army Corp of Engineers. These areas will require additional insurance, often costing the same or more than general hazard insurance.
If obtaining homeowner’s insurance is important, and it should be, this should be done during the inspection period. The lender may require insurance prior to sending loan documents for signature. The buyer should ask for quotes from the same company from which he/she purchases automobile insurance. The package of auto and home should be discounted somewhat. Purchasing insurance from the lender is often costly.
The buyer should know if the property is on sewer or septic. If septic, then the tank must be pumped and certified and documents filed with the Department of Environmental Quality. This is a cost to the seller but the buyer should know the location of the septic. Sometimes it cannot be determined if the property is on sewer in which case the buyer’s agent will have to order a dye test to confirm whether the property is on sewer.
Arizona is known for the numbers of child drownings and swimming pool barrier regulations are in effect in several towns. The buyer should receive a copy of the Arizona Department of Health Services approved private pool safety notice and know what barriers regulations exist.
The buyer must know and must initial a clause which specifies that the real estate agent and broker are simply that, real estate professionals. They are not licensed or qualified to conduct inspections and the buyer should contact professionals in the specific disciplines for professional information.
At the end of the inspection period – or the inspections – the buyer will sit down with the agent and write the Buyer’s Inspection Notice and Seller’s Response. In this, the buyer will indicate what situations are to be corrected by the buyer prior to close of escrow. The buyer will respond in writing within five days and indicate what he/she will or will not do. If the seller is unable or unwilling to do the repairs requested, the buyer may withdraw from the contract and have all earnest money returned.
If there are non-working warranted items, the buyer must let the seller know.
Home warranty plans are offered by several companies and cover basic problems. Additional coverage can be purchased for additional cost. Often the buyer will request a home warranty from the seller. The costs of these can run to $600 or more, so be aware of what you are purchasing or asking the seller to purchase.
The seller will make the home available prior to the close of escrow for a final walkthrough where the buyer checks the condition of the property and insures that all repairs have been done in a workmanship like manner. All utilities must be on and the expense is to the seller.

Arizona is not an attorney state and people purchasing property here who hail from the east coast are often baffled because the Realtor® does everything, there is no attorney involved. If the seller and/or buyer want legal representation, he/she can hire an attorney, but under Arizona statutes, the real estate agent has the power granted to attorneys in other states.

Arizona is often called a “title company” state. It is the title company which investigates the chain of title and provides “title insurance”. If the deed is faulty, it is the title company which must make restitution. In attorney states, it is the attorney who researches the chain of title and does the “closing” which would be the function of escrow companies here in Arizona.
We have talked about preparing the offer for the buyer, how it is going to be financed, when we are going to close escrow, and the appraisal contingency. When the seller’s agent receives an executable contract, that agent “opens escrow”. Evidence of earnest money is taken to the escrow company and “escrow is opened”.  A receipt for the earnest money is given to the agent who then should give a copy to the buyer and seller.  The escrow company begins the process of checking the documentation and orders title documents from the title company.
In Arizona, escrow company and title company are often used interchangeably. However, they can be different companies. Many of the large real estate companies have relationships with title companies and escrow companies; the information on the contract will read abc title company/xyz agency.  Sometimes this is more expensive for the buyer and seller.
The buyer must determine how to take title to the property.  There are several methods in Arizona in which to take title with legal and taxable ramifications to each method. Legal and/or tax information cannot be dispensed by the agent or the title company but the agent or title company can give you an informational sheet on methods.
The commitment for title insurance will be delivered to the agent and to the buyer and these documents should be read by both the buyer and the buyer’s agent to insure there is no “clouded title”. Problems with title must be resolved prior to close of escrow. A common problem is a living person who is on title, and the co title holder is deceased.  The estate of the deceased must be reconciled prior to transfer of title and any and all taxes paid.
Before listing a property, a good agent will make sure there are no title problems and may ask for a certified death certificate as well as trust documents.   When an offer is being negotiated, the horrible title problems will not rear their ugly heads. Sometimes it takes months to clear a title since people must be tracked down and documents must be notarized.
Any exceptions to title insurance must be listed. Title insurance generally covers anything which can be determined from public records. Items not recorded in public records are usually not covered. Deed restrictions, easements, covenants, codes and restrictions should all be public records.

The escrow company must provide the Homeowner’s Association (HOA) information about the buyer and must provide the HOA a closing protection letter indemnifying the buyer and seller from any losses or fraudulent acts by the escrow company. The purchase contract is the instructions to the title and escrow companies.

The buyer has five days from receipt of these documents to review them and disapprove of any item.  A buyer who has three 150 pound dogs may want to withdraw from the contract since the HOA regulations permit only one dog weighing no more than 50 pounds.  More commonly, a person has an RV or a large truck and will not be permitted to park the vehicle on the property. If in an active adult community, often young children are prohibited for more than an overnight. Grandparents who find themselves caring for grandchildren may have to move from an active adult community or give up caring for their grandchildren.  CC and R’s impact the way you can live in your property.  Pay attention to them!

The date of close of escrow is the date of proration for taxes, insurances, HOA dues, or other fees. The buyer should make sure all utilities are turned on at the close of escrow so a reconnect fee will not be charged.
If there is a dispute between the buyer and seller regarding any earnest money deposited with the escrow company, the final arbiter is the escrow company. This may arise because one or the other party fails to fulfill the terms of the contract. Each agent may petition the escrow officer on behalf of his/her client, but there is a hold harmless clause indemnifying the escrow company.
The contract provides for assessment liens to be split between buyer and seller, paid in full by either the buyer or seller, but any lien filed after the close of escrow is the responsibility of the buyer.
FIRPTA, the Foreign Investors in Real Property Act, must be complied with at the close of escrow and it is the responsibility of the BUYER to withhold a tax equal to 10% of the purchase price if the seller is a Foreign Person or non resident alien who does not have a tax number.

Realtors® who sell to foreign persons have an ethical responsibility to explain FIRPA and the need to obtain a tax number to these buyers when selling a property in the United States. Trying to comply with the federal mandate when selling a home in order to close escrow is difficult at best.