Ask Questions, Lots of Them: Know What You're Signing and Why

A home purchase puts a stack of unfamiliar documents, deadlines, and terminology in front of you at the exact moment you are making one of the largest financial decisions of your life. It is tempting to nod along and trust that it will all make sense later. The buyers who feel the most confident at closing are almost always the ones who asked a lot of questions along the way. Everyone on your team, from your agent to your lender to your inspector, expects questions and should welcome them.

Why asking matters

A real estate transaction runs on dates and documents. Miss a deadline in the purchase agreement and you can lose a right you did not know you had, and in some situations your earnest money deposit can be affected. Sign something you did not understand and you may be bound by terms you would have negotiated differently.

Your agent owes you duties. In Nevada, a licensee must exercise reasonable skill and care and must disclose material facts about the property that the licensee knows or should know. But you are the only person who knows what is unclear to you. Speaking up lets the people helping you give you what you actually need.

Questions about the home and the seller's disclosures

Sellers of most existing homes in Nevada must complete a state-prescribed Seller's Real Property Disclosure. It reflects what the seller knows, it is not a guarantee, and the Nevada Real Estate Division is clear that it does not replace an inspection. Read every page, pay special attention to any answer marked yes, and read the explanation that goes with it. Then ask:

• How old are the roof, air conditioner, and water heater, and when were they last serviced?
• Has the home had leaks, repairs, or insurance claims, and what was done about them?
• Was past work, such as a remodel, patio cover, garage conversion, or addition, done with permits?
• What is included in the sale: appliances, window coverings, pool equipment, solar panels, a water softener?
• How long has the home been on the market, and have there been price changes? Your agent can pull this from the MLS.
• What do typical monthly utility bills look like, especially in summer?

Questions about the inspection report

Inspection reports are long and written in technical language. A long report does not mean a bad house, and a short one does not mean a perfect one. Ask the inspector, during the inspection and afterward:

• Which of these items are safety concerns, which are major defects, and which are routine maintenance?
• Which findings need a specialist, such as a roofer, HVAC technician, plumber, or structural engineer?
• How much useful life do the major systems have left?
• What can wait a year, and what should be handled right away?

Inspectors usually do not provide repair estimates, so plan to get bids from licensed contractors for anything significant. For more on this step, see Never Skip the Home Inspection.

Questions about the HOA

Many Las Vegas and Henderson communities have homeowners associations, and the documents are dense. Ask what the dues cover, whether special assessments are planned or recent, how well the reserves are funded, what the rules say about parking, rentals, and exterior changes, and whether the association is involved in any legal disputes. Our article Check the HOA Before You Commit goes through the full list.

Questions about the contract and its deadlines

Before you sign a purchase agreement, ask your agent to walk through it with you. Nobody should be surprised by a date after the fact. Make sure you can answer these:

• When is my earnest money due, and where does it go?
• When does my due diligence period end, and what must be done before then?
• When are my repair requests due?
• When do the loan approval and appraisal deadlines fall?
• When is the close of escrow, and when do I get possession?
• What happens if a deadline is missed, and is my deposit at risk?
• Which contingencies protect me, and when do they expire?

Real estate agents can explain how standard real estate forms work, but they cannot give legal advice. If you have a question about your legal rights or obligations, an attorney is the right person to ask.

Questions for your lender

Federal rules require your lender to give you a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing. Compare the two line by line, and ask about anything that changed. Also ask:

• What are my interest rate and APR, and am I paying points?
• Is my rate locked, and when does the lock expire?
• What could change my monthly payment, such as taxes, insurance, or mortgage insurance?
• Will taxes and insurance be paid through an escrow account?
• Which documents do you still need, and by when?
• What financial changes should I avoid before closing?

Questions about closing costs

Closing costs come from several places: lender fees, title and escrow fees, prepaid items like insurance and taxes, and government charges. In Clark County, for example, the real property transfer tax is $2.55 per $500 of value. Who pays each cost is set by your purchase agreement and can be negotiated, so ask which costs are yours, which are the seller's, and where there is room to negotiate. Our article on why the lowest offer is not always the best deal shows how credits can fit in.

Questions for your agent

• How and how quickly will we communicate during the process?
• How are you paid, and what does our written buyer agreement say?
• How do you handle competing offers?
• Who else on your team will I be working with?
• What is your experience in the areas and property types I am considering?

How to ask good questions

1. 1.Write your questions down as you think of them so none get lost.
2. 2.Ask in writing when the answer matters. An email creates a record and gives the other person time to answer precisely.
3. 3.Ask early. A question asked two days before a deadline can still change your decision. The same question asked after the deadline cannot.
4. 4.Ask what happens if. What if the appraisal comes in low? What if the inspection finds a major problem? What if my loan is delayed?
5. 5.Ask for plain English. If a term is unfamiliar, ask for it to be explained without jargon.
6. 6.Pause when you are unsure. It is better to take an extra day to understand a document than to sign it and hope.

No question is too small

If you are unsure about something, ask us. That is what our team is here for, and we would much rather answer a question today than untangle a surprise later. Reach out with whatever is on your mind.

Contact The Perna Group