I am in escrow, what should I be asking for?

Asked by Finecut82, Los Angeles, CA Mon Feb 17, 2014

I just opened an escrow for a Non-owner occupied condo located in Encino, CA. and I need advise on what things I need to review/inspect before the close of escrow. The building was built in 1984 and it has 32 units. The building is owned by one person who recently start selling the units ( 3 or 4 units sold already ) and couple others are in escrow.. most units sold were financed by a lender who doesn't care if one owner owns more than 50% of the building. Please let me know what I should be aware of in such situation while escrow is still open.

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Jose Diaz, Agent, Upland, CA
Fri Feb 21, 2014
I agree with Barbara on what to look for. Also make sure to get the disclosures from the seller. Make sure that you complete your inspections of the property and reviewing of all reports within your inspection contingency time frame.

Congrats on your purchase.

Jose Diaz
0 votes
Alexander Gr…, Agent, San Jose, CA
Mon Feb 17, 2014
Are you buying it with all cash? Do you have a real estate agent?

Just email me if you have any other questions or concerns.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
0 votes
Brian Griffin, Agent, Los Angeles, CA
Mon Feb 17, 2014
Sounds like a condo conversion. Just make sure the HOA has rights. I would get a standard inspection. Also, look into up to code conversions. A mix up here, could cost you and the rest of the owners a big headache down the road.
I would also get comfortable with the fact a law suit willl arise between all the owners and the developer at one point in the future, ask how he plans to handle the lawsuit.
I might also ask who is the HOA management company? What is their track record?
Good luck,
BG
0 votes
Hi Brad, since the building was built in 1984 and has 32 units, how much reserve the HOA should have? what would be a reasonable amount?
Flag Tue Feb 18, 2014
Hi Brian, what rights exactly the HOA should have? what is up to code conversion? how can I confirm that? why would a lawsuit arise?
Flag Tue Feb 18, 2014
Brad Korb, Agent, Burbank, CA
Mon Feb 17, 2014
I would check out what is going on with the new H.O.A. - what is the budget for all maintenance at the property,does the H.O.A. have any money set up for reserves for future repairs. If he is over 50% ownership how much voting rights is he going to have.It could be a challenge if he has over 50% votes & the rest of the association wants to upgrade the property or do maintenance & he said No ! Good Luck !
0 votes
Barbara Gran…, Agent, Anaheim, CA
Mon Feb 17, 2014
Hi Finecut82,

Assuming that all standard contingencies are in place for the first 17 days, order a home inspection to be done on your unit, review the CC&Rs for the complex and review the preliminary title report to make sure everything is to your satisfaction. Also, the property should appraise for the purchase price.

If you purchased through the sales office/owner without benefit of your own agent, you may want to have your contract reviewed by an independent broker or real estate attorney.

Best of luck to you!

Barbara Grandolfo
0 votes
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