Hey, Hey, Hey!
Just got back from teaching a class in Sacramento, CA. What an awesome group of people!
They had some great questions that I wanted to share with you about transaction management.
"Is it important to track the buyer's deposit into escrow?"
Absolutely! I'm a real stickler when it comes to deposits. I want to see them in escrow in the time frame specified in the contract! Upon receipt of the deposit, the escrow officer SHOULD send out a copy of the deposit receipt showing the copy of the check and amount deposited. A deposit placed into escrow tells me the buyer is serious about purchasing the property and has the money to do so!
What happens if the property is an REO and signatures cannot be received from the bank for at least 2 weeks after verbal acceptance? Do we still have a deal? When is our acceptance date?
Yes, you do! Welcome to the exception of the rule that a contract must be fully executed and acknowledged to have a deal. It all comes down to the intent of the buyer and seller. If their actions are showing that an agreement has been made, then we have an agreement. The acceptance date will be upon verbal acceptance from the bank. This should be documented in writing and agreed upon between both the buyer and seller's agents.
Which side orders the termite, home inspections and natural hazard reports?
Whoever is responsible for paying for the report typically orders and provides access for the inspection. The exception to this rule is the appraisal.
When I give terms to the escrow officer, do I need to tell the officer what escrow and title insurance fees are?
No! Unless you had a specific agreement with the escrow/title company to charge a certain fee. They already know what fees they will charge. You simply need to identify who is going to pay for those fees.