Dear Michael: In a few days we will be closing escrow on our home of 30 years. Will we need to be at escrow to sign any documents at the close of escrow?
Answer: Congratulations on the sale of your home. While I am sure your home held good times for you, you are now free to move on to other good times and adventures! Escrow duration is usually 30 to 45 days. During this period escrow should have sent you a list of documents which will require your signature. These include: Escrow instructions, Grant Deed (must be notarized), closing estimate, disclosures for the buyer and Title report. These must be returned to escrow in a timely manner, or at least 10 days prior to the close of escrow. If any documents are missing, escrow will let you know and mail them to you for signatures. Escrow cannot close until all documents have been completed and signed by both, buyer and seller. The day prior to the close of escrow the buyers loan funds (deposited) to the title company.
The title company will then pay off any outstanding mortgage note(s) on your property. Any additional proceeds are then forwarded to escrow as your net gain. The close of escrow or also called “recording” happens the day after funding. You, as the seller not need to be present at escrow for the closing. Once your property records at city hall and escrow closes your net proceeds from the sale are wired to your bank account.
Dear Michael: I am purchasing a home that has a recorded city code violation. The seller disclosed that he built a wood awning structure without any permits. What should I do? I really like the way it looks and creates much needed sun shade to the patio.
Answer. I suggest you go to city hall and review the code violation. If the awning seems to be built correctly, then you can request that the city inspector come by and sign off. Keep in mind that the inspector may require additional alterations which will need to be corrected now or when you are the owner of the home. If you go to city hall and determine that the awning was not properly built and do not wish to take on this endeavor than you can ask the seller to remove it.
The seller does not have to agree with your request to take it down or even pay for the removal. If your seller does not agree to remove it and you wish to proceed with your purchase, then you can still close escrow and remove it yourself at your own cost. A seller must disclose any material fact which affects the property. A building code violation falls under this umbrella. As a buyer you must pay close attention to the seller’s disclosure. You are doing the right thing by going to city hall and looking into this matter. Code violations can range from minimal cost to very high cost. Its best to be prepared and know what you are up against!
Dear Michael: We are in escrow on an older home in which space restricts the possibility to have the furnace vents duct fixed up to code. Therefore, a new furnace will need to be installed in the attic instead of the basement where it currently is. We requested to have the seller pay for half of a new furnace and were told that only a partial credit will be credited to us. We are not happy with the seller’s response; can we keep on requesting? And at which point do we settle?
Answer: Do not settle; insist that the seller pay for half of the furnace. This is a legitimate request. It is not your fault that the furnace is not up to code. If your request was illegitimate, then I would understand the seller’s decision but this is not the case. Tell your agent to re-submit your request insisting that you get credit for half of the furnace. It is worth a try. I doubt that the seller will risk having the purchase cancelled for the cost of half a furnace. If the seller refuses, then it is up to you to decide whether or not you want to move forward with the purchase this home.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com