Kenny Burrell

First, what is a resale package? It is a compilation of pertinent documents that pertain to the conveyance of real property located within the jurisdiction of a common interest community.

Resale packages in Nevada consist of the following:

Declaration of Restrictions (CC&Rs)

Association Bylaws

Rules and Regulations

Information Statement

Periodic Assessment Statement

Operating Budget Statement \

Financial Statement (includes reserves)

Declaration of Liens and/or Legal Actions against the Association

Notice of Transfer/Resale Fees

Notice of Other Fees (includes late fees, etc.)

As you can see, several of the components must be current, or they are not valid under state law. In some states, sellers of property in CIC's may simply convey to the buyer the same package that they received when they originally purchased the property.

However, in Nevada, a new resale package must be obtained and conveyed every time a property is sold. Nevada law also requires that this resale package is paid for by the seller. Many people mistakenly think that banks are exempt from this requirement. Banks are NOT exempt. Even in REO (bank-owned) transactions, banks are obligated to pay for the resale package.

However, there is a loophole in the law. You see, the law says that sellers are required to pay for the packages; it does not say WHEN they are required to pay. Therefore, it is common when dealing with banks that they will only reimburse whoever laid out the money for the resale package at the close of escrow. In other words, they are not willing to directly pay for the packages up front. They don't want the accounting, they don't want to pay for packages on transactions that never close, whatever their reasons are.

In short sales, in some cases, even though the seller is required to pay for the resale package, the seller simply is not in the financial position to do so up front. In these two situations, it is common for the buyer, or some other party, to purchase the resale package, and then get reimbursed for it at the time of closing. Bottom line: No, the resale package cannot be recycled.

This new law, which took effect on October 1, 2009, states that a title company must have good (cleared) funds prior to the recording of a deed. In other words, checks at the close of escrow, of just before, are no longer acceptable under this law. Some title companies have seemingly misapplied this new law. Some of them have demanded that earnest money deposits come in the form of a bank wire or bank check. While a title company certainly has the right to determine their own policies, do not be fooled into thinking that this is a result of the new law. It is not. The only exception would be if an earnest money personal check were to be deposited with less than 10-30 days until the close of escrow. Other than that, in normal real estate transactions, there should be no problem at all using personal checks as earnest money. Bank checks drawn on a Nevada bank are still accepted by many title companies, for earnest money deposits or for close of escrow. But expect to deliver the checks at least 3-5 business days before COE (varies by title company), so there is ample time for the bank to clear the checks. Likewise, bank checks drawn on out-of-state banks may take 10-14 business days to clear. There has been a significant amount of fraud with bank checks, and title companies need to know that the checks are valid. Personal checks are no longer accepted at many title companies within 30 days of close of escrow, for obvious reasons. In most transactions, though, the period of time between the deposit of earnest money and the close of escrow exceeds 30 days. Wire transfers have become increasingly popular as a way to fund real estate transactions, and for good reason. Bottom line: while it is perfectly acceptable for earnest money to come in the form of a personal or bank check, you should try to persuade your clients to use a bank wire for close of escrow whenever possible, to avoid unnecessary delays.

www.zillow.com/profile/Mr.-Las-Vegas-RE

Las Vegas home prices up a bit, sales down a bit June 8th, 2010 4:00 PM

According to a report released today by the Greater Las Vegas Association of Realtors, for the second straight month, home prices showed a slight up tick from the previous year. The median price of a single family home in May was $142,000 which is 1.4 percent more than in May 2009.

However, according to the GLVAR, the total number of houses, condos and townhomes sold in May was 3,653, which is down from 3,738 total sales in April, and down from 3,992 one year ago.

What does this mean?

I think homes sales would have been up if there was more inventory to sell. Of course, the expiration of the homebuyer tax credit had some effect. But I think that the numbers are more influenced by the fact that countless buyers are chasing fewer available homes and simply cannot get an approved contract.

For real estate professionals, I believe the writing is on the wall: short sales are the next wave of Las Vegas real estate. The number of foreclosures is dropping, which means the low-hanging fruit has been absorbed already. Now, it's on to short sales. Many agents and buyers have avoided short sales because they are tedious, time-consuming, aggravating and may not result in a purchase at all. The banks certainly haven't made it very easy for short sales to get approved and closed; we all know that.

Also, there is not a significant number of "regular" listings on the market, although that number is showing some signs of an increase lately, because so many homeowners are under water and cannot afford to sell for current market values.

That leaves short sales.

Real estate agents who have shunned short sales, or haven't take the time and effort to get trained for short sales, may very well be out of the business soon. Some experts are predicting that next year, short sales may represent half of all transactions in Las Vegas. So if an agent is not prepared and willing to handle them, he won't have much business, for sure.

Bottom line: a year or two ago, everyone was talking about the glut of inventory, wondering how we could ever get through it. Well, we have mostly gotten through it now, and I believe that is reflected in the numbers stated above. Short sales are slower and tougher, but buyers better get ready, because this is what the next couple of years will look like in Las Vegas.

I like to refer to this as a commitment agreement on both sides. My commitment is to use my expertise, knowledge, negotiating skills, responsiveness and determination to delivery what my buyer wants. I'm looking for a commitment from potential buyers to use me exclusively in a real estate transaction. I'm committed to making the process smooth and stress free as possible. I will negotiate the best price for my client, open escrow, and provide inspection companies to choose from. I will be there through the inspection to resolve issues, renegotiate when applicable, final walk- through and closing. I need some feedback. Is this agreement to much to ask from a customer?

Brad comments on all the emotion and drama in real estate today. May 26th, 2010 1:28 PM

For years, I have been teaching my associates that real estate is 25% financial, and 75% emotional. Never has that been more true than it is today.

In all my years in the real estate business, I have never seen more emotion. Buyers are frustrated that their offers are getting beaten out by other buyers. Agents are frustrated because they are writing multiple offers, and the vast majority are not getting accepted. Loan officers are frustrated because the banks have tightened up lending so much that assembling the documents the lenders need to fund is becoming an art form. Sellers are frustrated that their properties are not commanding the prices they hope for. Now, add to that all the financial problems that many people are suffering, and you have a recipe for stress, tension and rampant emotion.

I have always told my associates: put the emotions aside, and just get the transaction closed! Your fiduciary responsibility is to your customers, not to your ego and pride. In fact, if anyone needs to be focused and professional, and not let their emotions rule them, it's the real estate professionals. They will be, and should be, held to a higher standard.

While we cannot control the antics and craziness of others, especially our customers, we can, or should be able to, control our own. And in my opinion, the ability to stay calm and focused, and not get carried away, is one of the signs of a true professional.

Many agents contact me because of emotional issues: buyers and sellers fighting, loan officers who don't return calls, agents who seem to disappear, banks who don't respond, and the like. Well, these are the times we are in right now. That is one of the reasons that GLVAR has seen such an unprecedented drop in membership over the last couple of years.

Real estate professionals need thick skin and strong stomachs to survive and thrive in this current atmosphere. But, those who can put aside the emotion and drama, and remain professional throughout their dealings, are being rewarded with a slightly larger piece of the proverbial pie.