Clarification for Energy Audit Requirement

For a quick reference I have provided a break down Q & A regarding this new regulations.

The new requirements are found in NRS 113.115, which was passed by the Nevada Legislature in 2007 and amended in 2009. The Nevada Energy Commissioner recently adopted regulations that provide a framework for the evaluation form.

Note: All residential transactions that close on or after January 1, 2011 must comply with the new law. Either the evaluation form must be completed and provided to the buyer or the parties may waive the requirement by using the waiver form on the bottom of page 4 of the form. 

Who should complete the form?

Like the Seller's Real Property Disclosure form, the energy evaluation should be completed and signed by the seller, not the real estate licensee. Alternatively, if the seller chooses to have an energy evaluation performed by a certified inspector, the inspector will complete and sign the form. When must the form be provided? NRS 113.115(2) states that the seller must provide the evaluation form "before closing a transaction for the conveyance of residential property." The law does not specify a date or a number of days prior to closing.

What transactions are exempt?

NRS 113.115(3) provides four exemptions:

• By foreclosure pursuant to chapter 107 of NRS. (Note: This means the Trustee's sale; it does not mean an REO. REO transactions are not exempt under this provision.)
• Between any co-owners of the property, spouses or persons related within the third degree of consanguinity.
• By a person who takes temporary possession or control of or title to the property solely to facilitate the sale of the property on behalf of a person who relocates to another county, state or country before title to the property is transferred to a purchaser.
• If the seller and purchaser agree to waive the requirements of subsection 1 [of NRS 113.115].
  
  Additionally, per NRS 113.115(4), if the seller completed an evaluation within the previous 5 years before signing the purchase agreement with the buyer, the seller may provide that evaluation to satisfy the requirements of NRS 113.115(1).

May the buyer and seller waive the evaluation form?

Yes. When the buyer and seller mutually agree to waive the requirements of NRS 113.115(1), the evaluation is not required. The waiver is found at the bottom of page 4 of the form.

Does this new law apply to transactions already in escrow as of January 1, 2011? 
Yes.  The seller in any residential transaction that closes on or after January 1, 2011 must comply with the new evaluation form.  If the parties choose to waive the requirement, use the waiver at the botrtom of page 4 of the form. 

If the seller provides the evaluation form, does the buyer have the right to cancel based on what's disclosed?
There is no independent statutory right of cancellation provided in NRS 113.115 or NRS 701.250. Thus, for a buyer to cancel based on what's disclosed on the evaluation form, it would have to arise from a contractual right such as the due diligence period.

Does the buyer have to sign the form?Yes. The buyer signs on page 4 that he/she has received the evaluation form.  From a risk management standpoint, a fully executed copy of the form should be kept in both the listing and buyer agent's files.

Any questions please do not hesitate to contact me.

Heather Etchings

Realty One group

702-277-7071

HeatherEtchings@Gmail.com

Brand New Nevada Revised Statute Effective January 1, 2011 "Energy Audit"

Home Buyers in Nevada have something new to look forward to and Sellers another step to providing "Full Disclosure" to potential buyers. It's the "Energy Audit" now required and mandated by Law for residential property point of sale transactions. As of January 1, 2011, Sellers will be required to provide a three page disclosure of the energy consumption of their home or Buyers can waive their right to one.

All the details and NRS can be found here: http://renewableenergy.state.nv.us/.

Being someone who purchased in Nevada 17 years ago when there wasn't so much as a Sellers Real Property Disclosure, Nevada has come a long way in protecting the prospective home owner and Sellers. Whatever state you are purchasing in it's always a great idea to check what is required by law in the form of disclosures. Many who choose to Sell directly to the buyer (For Sale By Owner) could find themselves in legal trouble for not following the law and a Buyer who choses to buy directly from the Seller thinking they will hatch a better deal, beware you may be buying a lemon and without the proper documentation or representation from a Realtor you could be in for thousands of costly repairs.

Vegas is Selling Fast so As always Happy Home Hunting!

Heather Etchings

Loan Modification Options for Homeowners in Distress

There is so much happening these days with ways homeowners can try and modify their current homes. Yes, even second homes and investments. Before anyone opts to short sell their home or let it go into foreclosure it is imperative you educate yourself and not put your home and financial future in the hands of someone else without at least knowing the basics. Having someone to help walk you through it and be a professional reference is the second step after education.

Are you familiar with the following programs to modify your home? If not, get educated.
HARP - Home Affordable Refinance Plan
HAFA - Home Affordable Foreclosure Alternatives Program
HAMP - Home Affordable Modification Plan
2MP - Second Lien Holder Modification Plan
UP - Home Affordable Unemployment Plan

Find the Questions and Answers for these programs straight from the Government
http://makinghomeaffordable.gov/borrower-faqs.html#2

Most of these programs were designed for Fannie Mae or Freddie Mac backed loans but there's good news! Now HAFA for the NON-GSE's (Government Sponsored Enterprises) has been released as of August 1, 2010!

What got most of the country in trouble over the past 5 years was the mindset that everyone else is doing it so why not us? "It's easy to jump right in and become an investor and flip homes and make a ton of cash." "I'll just take cash out own my current home and buy 3 more then flip them." "I didn't read the contract because I trusted my lender/real estate agent". Don't repeat the same mistake and lose your home. Owning a home is a big responsibility and a bigger impact on your financial future so don't go in with blinders on.

It's not going to be fun and it's not going to be comfortable. But it's necessary.

Familiarize yourself with the facts and then find a knowledgeable Real Estate Agent or Lender to help guide you the rest of the way. And of course call or email me if you have any further questions or topics you would like me to research for you and post here on my blog.

As always it is my pleasure to be of service to you,

Heather Etchings, REALTOR® 
Realty One Group - Direct: 702-277-7071
Proud Recipient of the Las Vegas Chamber of Commerce "Customer Service Excellence Award"

Purchasing a home after a Short Sale September 3, 2010

When will I be able to purchase another home now that I have short sold my other one?

This is a common question these days and for those who sold their homes in a short sale in 2008 or prior are in luck, there are loans for you. Of course it’s not going to be as easy as when you originally got your loan to purchase a home but the option is there and worth taking a look at.

What are the banks going to expect from me when I apply for another home loan?

The consensus from various lenders is that they are going to want you with your prom dress on so to speak. You will need to have your credit in order with no late payments, collections or large outstanding debts. They will want you to have a minimum of a 580 some say but the larger number say 620 or better because now you are a bigger risk. You are most likely going to be asked, “Why did you short sell?” and documentation to back it up.

I got foreclosed on is there any hope for me getting another home loan?

Surprisingly yes there is but you are looking at 4+ years out from the foreclosure date. Expect to be asked, “Why did you walk away from your home?”, “Did you try to modify?”, “Did you try to short sell”. What attempts did you make to keep the mortgage current on your home?”

You should also expect they are going to want strong work history for the past 2 years, stellar credit and reserves in the bank. Oh yes, remember those? Yes reserves in the bank for your mortgage just like investors are being required to do now. They want to be sure you have a backup plan this time.

Now these are all possibilities but in order for you to find out exactly where you stand is align yourself with the right professionals to guide you. A good Real Estate Agent and Lender who will work with you on your credit is the best place to start. Feel free to email or call me with questions or comments. I am a Full Service, Full Time REALTOR® specializing in Listings, Short Sales & Buyer Representation in all areas including New Homes.

As always it is my pleasure to be of service to you,

Heather Etchings, REALTOR® 
Realty One Group - Direct: 702-277-7071
Proud Recipient of the Las Vegas Chamber of Commerce "Customer Service Excellence Award"

Las Vegas Real Estate – August 26, 2010

How is the Las Vegas Market Doing?

This is the most frequently asked question on just about any given day of any given year but this year is significant with all of the regulatory changes, stimulus incentives and financing conditions that have come our way in 2010. At the end of the day having the regulations in place will benefit all parties involved in the home selling or buying process and that of course helps the overall economy so we can have some confidence in that. The stimulus incentive for first time home buyers proved to be a positive driving force in the first part of the year of which with most of my buyers they spent that money either to pay down debt or in the market place to update and furnish their homes. So, in the end that was a good thing that came and went.

So what now?

If this economy is the “perfect storm” then it is also the “perfect spring day” for those who are prepared and interested in focusing on the positive. At no time in history have we seen both the interest rates at an all time low along with the home prices.  With regulations, pre-payment penalties are a thing of the past and predatory lending is being watched like a hawk with severe and swift penalties giving consumers the confidence to invest in real estate once again. We have been seeing a lot of this in 2010 with closing costs being paid by the Seller’s and New Home Builders throwing out their red carpets with huge incentives and lowering their prices to compete with the Resale Market. Buyers should make sure they are with an agent who has experience in selling New Homes and relationships with those builders and not entering the New Home Tracks alone to ensure they are getting the best deal. Remember the agents on the New Home Tracks work for the best interest of the Builder “not” the Buyer.

What about for investors?

Again, an excellent time to invest in real estate with low interest rates and demand for rental homes is pushing up the rental rates. In most cases investors are netting a profit from the beginning and in some areas renting for double their mortgage payment. What is the downside? Investor loans are much more difficult now with a minimum for most lenders of $70,000 loan amount, 20% down, 2 months mortgage reserve for any currently owned property and 6 months mortgage reserve for investment property being purchased.  But of course cash is king and the investor can avoid all the red tape.

This week’s conclusion is, as bad as the economy collapsed it has forced us all to learn to save like our grandparents did, plan like our parents did and eventually we will prosper as we all thought we did in 2005. This time we won’t be financed to the hilt instead have a good business plan moving forward and a backup plan for any possible setbacks that lay ahead. Today is the day to start thinking of the future, formulating a plan and executing that plan so get your team of professionals in place to guide you. Feel free to email or call me with questions or comments. I am a Full Service, Full Time REALTOR® specializing in Listings, Short Sales, Buyer Representation in all areas including New Homes.

As always it is my pleasure to be of service to you,

Heather Etchings, REALTOR® 
Realty One Group
Proud Recipient of the Las Vegas Chamber of Commerce "Customer Service Excellence Award"