THE PROCESS

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REALTOR® 

A REALTOR® is a licensed real estate agent and a member of the National Association of Realtors. REALTORS® also belong to their state and local Boards of REALTORS®. They have a wealth of resources at their disposal, including the Multiple Listing Service and continuing education. All association members agree to abide by a 17-article Code of Ethics as they pursue the highest level of professional standards. 

REAL ESTATE AGENT 

A real estate agent is licensed by the state to represent parties in the transfer of property. Every REALTOR® is a real estate agent, however not every real estate agent is a professional REALTOR.® 

LISTING AGENT 

A listing agent is the real estate agent that represents the seller. Listing agents list homes for sale on the regional Multiple Listing Service (MLS) and negotiate the best possible price and terms for their client. 

BUYER’S AGENT 

A buyer’s agent or buyer broker is an agent hired by the buyer. Generally, the buyer broker is paid from the commission fee agreed to by the Seller. 

MULTIPLE LISTING SERVICE (MLS) 

The MLS is a database of properties listed for sale by REALTORS® who are members of the local Board of REALTORS.® Information on an MLS property is available to thousands of REALTORS.® 

 THE RENT YOU PAY COULD BUILD EQUITY IN YOUR OWN REAL ESTATE.

 Not sure if you should buy a home? Before moving into a new house, you must determine whether you’d like to rent or buy. Usually your home will appreciate in value versus yearly rent payments that build no equity. Do you realize how much you pay in rent over a period of years? The chart on page 7 gives you an idea of what is happening to your money.  

RENT:

 •Rental amount may increase at any time 

• No interest payment deductions 

• Landlord approval needed for any changes 

• No capitalization; your money disappears forever 

• Rental is temporary and is often subject to 30 day’s notice 

BUY:

 • Mortgage payments can be fixed 

• Deductions for your mortgage interest paid 

• Make home improvements and decorate without prior approval 

• The value of your property may increase in time 

• Your house will become a home; you are not at the mercy of a landlord 

 WHAT IS TITLE INSURANCE? 

To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to the property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention. With title insurance, title examiners review the history of the property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing. 

WHY IS TITLE INSURANCE NEEDED? 

Title insurance is a way to protect what is likely your largest investment— your home. Title insurance assures the new Buyers that they are acquiring marketable title from the Seller. It is designed to eliminate risk caused by defects in title from the past. Title insurance protects the interest of the mortgage lender as well as the equity of the Buyer for as long as they or their heirs have any interest in the property. 

WHEN IS THE PREMIUM DUE? 

It is a one-time premium which is paid at the close of escrow. The policy provides coverage for as long as you are in a possession of the property. 

 IDENTITY STATEMENT 

An Identity Statement enables our title department to distinguish you from others with identical names during our search of County records. It also provides basic information that will be useful for your escrow officer. 

RESPONSE TO SELLER’S NOTICES 

If directed by the contract, you will receive the following items which require a response from you. Your REALTOR® can help you with your responses. 

• Seller’s Property Disclosure Statement listing any existing problems known to the Seller. 

• Information pertaining to the Homeowners Association (HOA) or Planned Unit Development (PUD), such as Covenants, Conditions and Restrictions (CC&Rs), if applicable. 

• Flood Hazard Disc

losure if the property is in a flood area. 

• Independent inspections, such as termite and septic, and any repairs as required. 

TITLE COMMITMENT 

You will receive a copy of the title commitment when we complete the title search. If you have questions about the title commitment, contact your REALTOR® or your escrow officer. 

KEEP IN MIND 

One escrow can involve several different individuals and may depend upon the successful close of another sale. With all the people involved in the process, there are many ways for delays and mishaps to occur. Having an experienced REALTOR® and escrow team in your corner can help you navigate any unforeseen issues that may arise. We’re here to get you to a happy, successful closing. 

 SCHEDULE A 

This is the information submitted to our title department by the escrow officer. It contains the basic information given to us by the Buyer or REALTOR®, such as the legal description of the property, sale price, loan amount, lender, name and marital status of Buyer and Seller. SCHEDULE B 

The Schedule B “exceptions” are items which are tied to the subject property. These include Covenants, Conditions and Restrictions (CC&Rs), easements, homeowners association by-laws, leases and other items which will remain of record and transfer with the property. They are referred to as “exceptions” because the Buyer will receive a clear title “except” the Buyer’s rights will be subject to conditions in the CC&Rs, recorded easements, etc. The Buyer is asked to sign a receipt for the Schedule B documents which states the Buyer has read and accepts the contents. 

REQUIREMENTS 

These are items that True Title and Escrow needs to delete and/or record in order to provide a clear title to the property. Items that need to be addressed include: 

• Current property-tax status, 

• Any assessments that are owed such as those for a homeowners association, 

• Any encumbrances (or liens) on the property. Sometimes items show up against a property because another person has a name similar to an involved party. This is one reason we ask for an Identify Statement, to determine if items are inaccurate and can be deleted. 

If you have any questions, please do not hesitate to call your True Title and Escrow officer for information and help. 

 WHAT IS AN ESCROW? 

Escrow is a financial arrangement in which two parties enlist a “third party” (who is neither the buyer nor the seller) to temporarily hold money, paperwork, or other assets for a transaction on their behalf before the transaction has been finalized. That third party, known as an escrow provider, helps make the transaction safer by protecting the assets of the buyer and seller until both parties have met their obligations for the agreement. The Buyer gives the funds to an escrow company who, acting as an intermediary, verifies that title to the property is clear and all written instructions in the contract have been met. Then the escrow company transfers the ownership of the property to the Buyer and pays the Seller. This process protects all parties involved. 

HOW IS AN ESCROW OPENED? 

Once you have completed the contract and the Seller has accepted the offer, your REALTOR® will open the escrow. The earnest money deposit and the contract are placed in escrow. Escrow opens when a signed agreement is delivered to an escrow officer, who ensures that the conditions of the contract are all satisfied. As a neutral party, ACME Title & Escrow can respond only to those written instructions agreed to mutually by the Seller and Buyer and cannot otherwise alter the contract or create instructions, and that protects all interested parties. 

HOW TO HOLD TITLE 

A comparison of the ways to hold title in the state of Nevada is on page 13. You may wish to consult an attorney, accountant or other professional before deciding how to hold title. You should inform your escrow officer and lender as soon as possible of how you wish to hold title to your home and exactly how your name(s) will appear on all documents. This allows your lender and title company to prepare all documents correctly. (Changes later, such as adding or deleting an initial in your name, can delay your closing.)