FAQ
What is the sales process?
The sales process is composed of several distinct phases- Deposit Receipt and Open Escrow, Loan Pre-qualification, Contract/Purchase and Sale Agreement, Loan Process, Final Inspection and Closing:
The sales process is composed of several distinct phases- Deposit Receipt and Open Escrow, Loan Pre-qualification, Contract/Purchase and Sale Agreement, Loan Process, Final Inspection and Closing:
1. Deposit Receipt and Contract of Sale Signing
In order to purchase one of our condominiums, a deposit will be required, $30,000 or 3% of the purchase price, whichever is higher. This deposit will be made to First American Title Company, and will be under the Buyers' name.
This is also the phase where Seller and Buyer come to terms. The listing agent will provide the Contract of Sale and all other documents to the Buyer. Buyer's agent will review and explain the Contract to the Buyer. If the Buyer has no agent, the listing agent will explain the contract to the Buyer. Buyer is also advised to consult with their lawyer. If the Buyer chooses to move forward and purchase the unit, Buyer will sign Contract of Sale with Seller.
This is also the phase where Seller and Buyer come to terms. The listing agent will provide the Contract of Sale and all other documents to the Buyer. Buyer's agent will review and explain the Contract to the Buyer. If the Buyer has no agent, the listing agent will explain the contract to the Buyer. Buyer is also advised to consult with their lawyer. If the Buyer chooses to move forward and purchase the unit, Buyer will sign Contract of Sale with Seller.
2. Open Escrow
Buyer's check will be sent to an Escrow Company (see below) where the check will be deposited to the Title Company under the Buyers’ name. This will allow the Escrow Company to officially open escrow and start the escrow process.
3. Loan Pre-qualification
Loan prequalification is a process that pre-approves a homebuyer for a specific loan amount when purchasing a home. To document the loan prequalification, the homebuyer receives a special letter from the lending institution or loan officer. A loan prequalification can aid a homebuyer in the purchase of a home because it gives the buyer a clearer picture how much money can be spent toward the purchase and also help expedite loan process time.
4. Contract Stages
At this time, both parties agree to the terms and the Contract is in effect. Time is of the essence.
A) As soon as Buyer signs the Purchase and Sale Agreement/Contract, the Listing Agent will provide further information for the Buyer to review, in which the buyer will have five calendar days. This information includes the following: Final Public Report, By-laws, Budget, CC&R’s, floor plan, Condo Map, final rendering, Specific Disclosures, Natural Hazard Disclosure, Common Interest Development General Information, Preliminary Title Report, Property Tax Report,
Universal Design Checklist and A, B, C, D Contingency Form.
Universal Design Checklist and A, B, C, D Contingency Form.
B) Loan Process (not applicable to Cash Buyers):
1. Loan study
The Buyer is obligated to obtain their own loan. Seller will offer a selection of preferred lenders (see below). The loan process is very engaging and requires Buyers to diligently pursue all loan requirements. Time is of the essence. Bank/Lender will request many documents including, but not limited to: pay stubs, W-2, bank statements, 1040, etc. Bank/Lender will also require Contract of Sale, the loan application and Preliminary Title Report. Buyer will learn about the loan interest rate, loan amount and other terms.
2. Appraisal
After that, an Appraisal will be ordered by the Lender. The Appraisal fee will be paid by the buyer. This initial loan process can take two to three weeks. Once a variety of loan conditions are satisfied, Lender will issue Loan Approval and Buyer will be able to remove Loan Contingency.
C) Construction
Construction is now completed. Certificate of Occupancy is dated 12/28/2010.
D) Inspection Contingency
The Buyer can hire a Home Inspector at their own cost, to inspect the property prior to the Close of Escrow and upon Seller’s notice. Home Inspector will check all finishes, including tile and hardwood flooring, cabinets, all plumbing fixtures, electrical installations, all appliances, windows, and doors. Buyer can also choose not to hire a Home Inspector and remove the Inspection Contingency by visually checking all the items listed bove.
E) Final Walk Through
A final walk-through is an inspection preformed anywhere from a few hours to three days before closing, and it's primary purpose is to make certain that the property is in the condition you agreed to buy. Seller's Customer Service Representative will assist you in this process; here are some of the things he/she will take you through:
·Turn on and off every light fixture
·Run the water and look under sinks for leaks
·Test all appliances
·Check garage door openers
·Open and close all doors
·Flush toilets
·Inspect ceilings, walls and floors
·Run garbage disposal and exhaust fans
·Test heating and air conditioning
·Open and close all windows and doors
·Make sure all the debris is removed from the home
·Check to assure that the painting is satisfactory
5. Closing/ Close of Escrow (COE)
The final stage is closing. This stage takes about 3 Days. The Buyer will be notified by the Escrow Company to prepare the down payment (via Cashier's Check or Wire Transfer) and deliver it to the Title Company under Buyer’s Escrow Account. The Title Company will also notify the Lender to send all loan documents to them. The Buyer will be invited to the Title Company to sign all final documents in front of the Notary. This will allow the Escrow Company to officially transfer the Title to the Buyer's name.
Who holds the deposit money and who is the Escrow Holder?
Escrow Company:
First American Title
299 West Portal Ave
San Francisco, CA 94127
Escrow Officer: Nancy Chan
Escrow Officer: Nancy Chan
Tel: 415-566-4662 ext. 114
Fax: 415-566-8216
What are the advantages of using our Preferred Lender?
We have carefully chosen out Preferred Lenders to work to your advantage. These lenders and loan officers are very familiar with new home construction financing which is different than a resale process. This trusted relationship between the builder and your loan officer will ease the process for you. The Buyer is also free to use the loan officer or Lender of their choice if they prefer.
Who are our preferred Lenders?
MetLife
Steve Switzer, Mortgage Consultant
Phone: 650-265-5020
Fax: 650-887-2257
Email: sswitzer@metlife.com
Wells Fargo
Eleanor Ng, Mortgage consultant
Phone: 925-460-2825
Cell: 510-368-2007
Fax: 925-469-0812
Email: Eleanor.ng@wellsfargo.com
Bank of America
Yolanda Liu, Mortgage Consultant
Cell: 650-270-8688
Fax: 866-613-3903
Are there any other costs related to the sale?
Yes. The Buyer is responsible for any closing expenses such as title insurance, escrow fees, recording fees, loan fees, appraisal fee, HOA fees, home insurance etc. These charges are outlined in a “Good Faith Estimate” (GFE), provided by your Loan Officer and Title Officer.
How much is Home Owners Association (HOA) fee?
HOA fees are due monthly and the amount depends on the size of your unit .
1 Br approx. - $250-320
2 Br approx. - $350-415
3 Br approx. - $415-435
HOA fee includes: Fire and Liability Insurance, garbage; all common area maintenance such as lobby, elevators, hallway, courtyard, exterior of the building, management fee, security and intercom system, common area water. HOA fee will also create and maintain budget reserves for future repairs and maintenance.
What kind of amenities are offered?
Club House and a Fitness facility are going to be on site and will be available for the residents to use. They will be a separate entity and therefore will be at additional cost via membership fee. Membership may be offered to the public as well. Resident will sign a separate agreement with the provider of these services. Both parties will be able to cancel the agreement at their discretion and the provider of these services reserves the right to use both or any of these designated areas for different purposes than listed above.
BBQ Area/Courtyard
This area will be used exclusively by residents. Residents will be able to reserve their date and time through HOA Management Company with applicable refundable deposits.
Where will I park my car?
One or more parking spaces are designated for each unit. One bedroom units have one parking space. Some of two bedroom units will have two parking spaces. Three bedroom units have two parking spaces. All parking spaces will be part of the Grand Deed. Renting of an unused parking space to another resident is permitted. Parking space renting is not allowed to outside parties.
Can I make changes to my home while under construction?
Millbrae Paradise, LLC (developer) takes pride in building quality, well-appointed homes with high end finishes at affordable prices. We are enabled to do so by working with select suppliers who are prepared to construct in accordance to our predetermined direction. Modifications to these plans are unavailable. In the event that the Buyer still wants to make a particular finish change, it will be subject to Seller’s approval. Special requests will be submitted to the Seller and an additional non-refundable deposit will be required,
Why are some of the finishes in my unit different than in the Models?
During the construction some suppliers may change and this could result in minor finish differences, however quality and type of material will not be compromised.
When will I be given a close of escrow (COE) date?
The Seller will notify you no less than 20-30 days prior to the COE day. Only in the event of unpredicted circumstances shall this day change and the Buyer will be notified immediately.
When do I move in?
Immediately upon the close of escrow and key delivery. Loan usually gets funded one day prior to COE day. Your deed is usually recorded the following day and once the deed is recorded, you will receive the keys. Please stay in close touch with your Sales Person, Escrow Company and Lender, so you can make accurate moving plans as the COE day approaches.
How to make move in arrangements?
You will receive a move in notice from the buildings management company when you receive your key. HOA will then approve the form and arrange a time for you to move in. This is necessary so that HOA can ensure that all appropriate areas are protected and free at the time of move in. HOA will also ensure that no other parties are moving in at that same time. Also, moving is only allowed in the P-2 level.
Millbrae Paradise Sales Office | 151 El Camino Real, Millbrae, CA 94030 | (415) 828-9300
