If you read my Deals & Delays Part One, you’ll know there are a lot of circumstances that can hold up a home sale. OK that’s the bad news. The good news? An experienced real estate agent can help you navigate these potential pitfalls and keep the process moving along …
So, where do I, as an experienced Los Angeles County-area real estate professional of more than 30 years, see deals getting held back? Let’s take a look!
BUYER BROKER AGREEMENTS
As of August 17, 2024, buyers are required to sign a written agreement and the Buyer Broker Agreement must be presented with an offer for the buyer’s agent to be paid. While it’s not required to show a home to a buyer, it’s a good idea to get one signed up front, and by law the agreement can’t exceed 90 days, though it can be extended or renewed but for no more than 90 days at a time. The agreement outlines the services buyers will receive from the agent and how concessions will be paid. A Buyer Broker Agreement adds more transparency to the commission process, and ensures buyers know exactly how their agent will be compensated. Most buyers today check the box on the agreement that says the buyer’s agent will pursue concessions from the seller, which is the business-as-usual option. However, if the Buyer Broker Agreement is unclear or if there are any negotiations around commission, this can slow down a deal. A clearly documented, discussed and agreed upon Buyer Broker Agreement keeps the deal moving forward.
DEALS WITH TRUSTS, LLCs OR INHERITED PROPERTY
If a home transaction involves a trust or an LLC, lenders may require additional documentation to prove the buyer or seller has the authority to complete the transaction. For an inherited property, in California, a California Certification of Trust can establish the necessary legal documentation. It’s always important to establish who has authority to buy or sell, who will sign the paperwork and whether all proper disclosures and documents are in place prior to opening escrow.
TITLE CLEARANCE
There are several issues that can prevent title clearance, like unreleased liens, unpaid property taxes, judgments, public records errors (even a misspelled name), boundary disputes, errors with the deed and more. The issues can bubble up late in the escrow process and cause severe delays.
Bottom line? Delays in deals happen but what happens next is critical. Make sure you’re working with an experienced, skilled agent who can guide you through these challenges and get you to the finish line … or in this case, to the closing table!
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com