Upon requesting to buy of a high rise condo or hotel condo the developer issues a purchase contract directly to the buyer. Usually the developer should have sent it simultaneously to the buyer and procuring real estate agent... But so many times they don't.
The buyer should discuss with their real estate agent or contact other professional services such as their legal or accounting advisers to reviews the purchase contract. After careful and well documented review the buyer accepts or rejects the purchase contract and sends it back to the developer for reexamination. Later the buyer's procuring real estate agent receives the new contract as executed by the buyer and developer.
In order to protect the buyer's interest in the process it is very important
- The buyer should inform their procuring Nevada real estate agent upon receiving the purchase contract.
In 2004 and 2005, many buyers were racing to get their deposits to the developer in order to not lose their purchase opportunity. Without informing their buyer’s agent they received a copy of the contract then the buyer agent has no way to participate in the contract review process with their buyer.
- The buyer should seek professional counsel from legal and accounting advisers regarding this Las Vegas luxury condo or hotel condo purchase contract.
In Nevada, the real estate agent cannot practice law or accounting services without a license. That real estate agent must advise their buyer to seek the necessary professional services.
- The buyer should read carefully the recession period, Home Owners Association governing components, the non-refundable deposit money and default clauses.
- Make sure that the executed purchase contract doesn't contain errors in names, spelling, procuring brokerage, amendments (if provided by the buyer’s legal counsel) and other problems or revisions are discovered.
At that point in time, it is not an easy process to make revisions to an executed purchase contract with the developer.
- When the buyer nears close of escrow, usually two or three years after the initial purchase contract execution, the current real estate climate, lending situation, financial status, and many other factors come into play. In 2008, these are clearly challenging times unlike the crazy real estate world of 2004-2005.
- The buyer's financial behavior during the two or three years it comes into account. Did they buy expensive cars, buy multiple investment properties, get into debt, have life changing situations such as divorce and experience other financially challenging situations during that period?
Many thinks can take place and life challenging stories can change the basic financial liabilities. Some troubled buyers of luxury condos or hotel condos, it appears to have some are financially challenges... Some gambled with hopes of a quick flip at closing as they couldn’t carry the condo more than a couple of months.
2008 is going to be a challenging year for the Las
Vegas Strip resale market. The resale high rise market has over
corrected, it'll take some time before resale catch up with
pre-construction pricing.
The Clark County tax assessor recently reported that Strip land
increased in value 43% in 2007 while Sky Las Vegas' land increased
59%. Even more shocking, the land under Sky Las Vegas has increased
800% in four years.
Nevada has been renamed the fastest growing state in the country by the Census Bureau. Nevada held this title for 18 years until losing to Arizona for just one year. Analysts believe Nevada will hold the title for a long time to come due to over $40 billion worth of new mega-resorts, a booming economy, and job growth.
This is a rapidly changing market with
projects and inventory changing daily, for the most up-to date
information call me
Arina Hanciulescu
ELITE REALTY
7448 W.Sahara #106
Las Vegas NV.89117
702-856-6680
mailto:arina.lv@gmail.com
http://www.lasvegas-buyandsell-realestate.com
Arina
I have to believe that alot of agents I meet don't go the full length. When in doubt I send the contract to my attorney/closer.
Sincerely
Tom Braatz
Tom , great to see you on my blog. Thanks for everything.
Arina,
I was involved in a couple of new construction purchases. It definately becomes easy to "overlook" the details. Luckily no harm no found but these days I wouldn't be so sure looking at the state of affairs of the construction industry.
Terrific post.
Michael
I was working for a new condo builder here in Texas and it is way different than purchase a resale. This is a really good post. One I will bookmark.
Thanks,
J.
Quite different from New Jersey. In the north part of NJ any contract goes through an attorney. Very informative. Nice post.
Great point. As an assistant I have seen this from agents (and assistants) on the other side of some deals. Many times they don't read the contract fully. I think some agents have gotten so comfortable that they only read the hand written parts, problem with that is that now many of us are doing our contracts on the computer so everything is typed.
Arina, purchasing condos in Nevada from the developer sounds similar to buying new construction homes from the builder. Why a buyer would not work with their buyer rep to review the contract makes no sense other than deals done in haste. Giving advice to work with attorneys or their CPAs is good to give the buyer. It sounds like you and other buyer reps are representing the clients well. But they have to take your advice and not make foolish decisions. The decisions are theres to make though, and if bad ones are made they will reap the consequences.
Gary,It was a time (2004 / 2005) when buyers were so eager to catch on the fly opportunity to buy Condos, straight from Developers (Call it Vegas-gambling style) by getting their deposits ahead to secure what purchase. It was such a hype and hasty selling storm around all those "hot" condo projects, no one could control and now, in 2008, some pays for that mistake. They just underestimated the process of closing the deal down the road (about 3 years later)
Michael, You know how some learn from their mistakes... In Vegas for a while aggressive and risky business practice got many buyers in trouble. There is a "gambling" factor that came over the real estate industry. They all are going to change.
Diana, No agents can afford to feel comfortable these days. We live in a different world now.
Thank you for the comment.
Maria,Thank you for coming to my post. Well! I guess I will be fortunate to live and work in your town.
Jeff: Thank you for the comment and bookmark.