San Diego, CA (PRWEB) August 13, 2014
Last month, Greater San Diego Association of Realtors announced that home sales are bouncing back this summer. In reaction to higher sales, New Venture Escrow shared insights to other costs associated with real estate,
"With increased home sales comes the value of knowing how to avoid delays in escrow," says Casey LeBlanc, president of New Venture Escrow.
“Escrow can sometimes be an expensive and time-consuming process,” LeBlanc notes. “When the process is slowed due to mistakes or negligence, the costs involved can increase significantly.”
Here are areas to watch for in order to avoid costly delays in a real estate transaction:
Document errors. “A misspelled name or incorrectly recorded street address happens more often than people may think,” says LeBlanc. “Or the problem can be something as simple as a page or two missing from a key document. Such errors in paperwork can generate confusion and unnecessary delays.”
It’s vitally important to review every item of paperwork involved, in close consultation with one’s real estate and escrow agents.
HOA contingencies. An escrow agent is responsible for ordering HOA documents (when applicable). These documents—generally required by the buyer and the buyer’s agent, and paid for by the seller—offer a detailed report about the history and health of the HOA company associated with a given property.
In most cases, the purchase agreement includes a contingency noting that HOA documents must be received, reviewed and signed off by a specified deadline. Failure to order these documents and get them to the appropriate parties on time can delay the closing of escrow.
Problems with titles. According to LeBlanc, this may be the most common area where issues arise that cause costly delays:
Any of these issues pose a threat to closing a sale, so again, it’s critical that escrow review the title report and inform all parties of any issues as soon as possible.
Buyers can be negatively affected by delays in the escrow process – but the same holds true for sellers. A delayed escrow may mean that sellers must continue to pay taxes, HOA expenses and interest for every day they live on the property and it isn’t sold.
“A responsible escrow agent makes sure that all parties are kept informed throughout the process,” LeBlanc says. “Our biggest responsibility is collecting information from all parties and keeping the real estate transaction on track. This helps to reduce or eliminate delays that consume further time and money.”