The earnest money deposit is the agreed upon deposit in the purchase contract, which is normally 1% of the purchase price. If you do not honor your requirements in the contract you are subject to losing this deposit. Otherwise, this deposit goes toward the purchase price.

The Lender orders the Appraisal of the property. You as the buyer will pay for the appraisal. Ask the Lender how much it will cost and ensure that it is ordered ASAP because you have a limited amount of time to ensure that the property appraises for the purchase amount before you can cancel the contract and receive your earnest money deposit back.

You will select and hire a Property Inspector to inspect the property to identify any major problems with the property. The average cost is $350-$450, depending on the size of the property. You will request repairs based on their report, which is normally provided within 24 hours of their inspection. They normally ask you to come along to the inspection. This does not include cosmetic repairs. You will also obtain a Termite Report (which is normal California but not so much in Nevada) & Environmental Report during this period. Click on the link below for Property Inspectors I've worked with in CA and NV.

You will choose a Home Owners' Warranty plan and any optional coverages, including but not limited to coverages for air conditioner and pool/spa. The seller normally pays for basic coverage and you as the buyer will pay the remaining, if applicable. Click on this link: Home Owner Warranty Companies options to choose from.

The Title Company will order a Preliminary Title Report which is used to show that the seller actually owns the property and is able to legally sell it. It also shows whether there are any liens on the property that need to be paid and removed prior to close of escrow.

Home Owners Association (HOA) Rules (if applicable) must be reviewed and signed by you as the buyer. They are requested by the seller and provided to you for your review. You will have 17 days or 5 days from receipt (whichever is later) to review those documents. It is important that you understand and agree with the HOA rules before you purchase a property subject to their rules.

You have 17 days or other agreed upon period of time to cancel the purchase contract if the appraisal is less than the agreed upon purchase price. You must cancel the contract within the agreed upon days or risk losing your earnest money deposit or pay the difference between the appraisal and purchase price of the property.

You have 17 days or other agreed upon period of time to cancel the purchase contract if the loan is not approved for any reason. You must cancel the contract within the agreed upon days or risk losing your earnest money deposit if you cannot purchase the property without the loan.

Sellers are required to provide a disclosure of major issues they are aware of with the property. You will have the opportunity to review their report and approve what they tell you prior to purchasing the property.

As a buyer, it is important to be aware of leased or liened items the property is subject to. You will get the opportunity to know what they are and agree to them prior to purchasing the property.