Inside this issue
  Acceleration Clauses -- Legal or not?  
By Tiffany Banks, NVR General Counsel

In our opinion, and consistent with the Nevada Real Estate Division position, inserting an "acceleration" clause in a contract would be a violation of fair dealing. The Nevada Law and Reference Guide specifically addresses this and states that the "acceleration clause" found in general contract or financing law is different than what we are talking about here. 
According to the Division, "an acceleration clause is a clause in which the offeror promises to pay a certain set amount above the highest offered sale price and usually provides for a maximum or cap amount. An example of an acceleration clause is, "I will pay $2,000 over the highest offer up to $300,000." This type of clause automatically gives one offeror a stated advantage over other offerors and may not allow fair dealing for the other offerors. Though the previous two activities (disclosing offer terms and inserting an acceleration clause) are not a direct violation of any law or regulation, and there is some controversy regarding this, nevertheless, the Real Estate Commission has found these practices highly suspect. Click here to read the full article. 

Top Five surprises learned house hunting in a pandemic  

Buying a home is never a simple undertaking. Even at the best of times, house hunting comes with lots of built-in stressors, from mortgage approvals to bidding wars and beyond.

But house-hunting during the coronavirus pandemic? That changes the game entirely. By the power of coincidence and bad timing, my home search started almost exactly as the crisis hit hard in the United States. Oh, and add to that the fact that I was moving cross-country, searching for a home remotely about 2,000 miles away! Read the complete article by clicking here.



  Client Behaviors Emerging From COVID-19  

As the effects of the pandemic continue, nine in 10 REALTORS® say their housing markets are in recovery mode, with many even saying their markets are hotter now than a year ago, recent member surveys from the National Association of REALTORS® show.

"The delayed spring market is definitely occurring now in the summer months," says Jessica Lautz, NAR's vice president of demographics and behavioral insights. The housing market is seeing unprecedented monthly jumps in existing-home sales, and home price appreciation remains strong. 

Lautz notes several insights, culled from recent NAR research, that show how buyers' and sellers' behavior is changing during the coronavirus health crisis. She highlighted those findings at Thursday's "REvive! From Crisis" virtual conference that featured an all-day lineup of industry leaders and speakers. Click here to read the full REALTOR Magazine article. 



  LVRJ: More than 10% of Las Vegas mortgage payments late in May  

Las Vegas' mortgage delinquency rate rose again in May after the coronavirus pandemic shut down much of the economy, a new report shows. Payments were at least 30 days late on 10.5 percent of home loans in the Las Vegas area in May, compared with 7.3 percent nationally, according to CoreLogic.

In April, payments were at least a month behind on 8.5 percent of Southern Nevada home loans, up more than double from 3.4 percent in March, the housing tracker previously reported. CoreLogic chief economist Frank Nothaft noted in a news release this week that the U.S. unemployment rate shot up from a 50-year low in February to an 80-year high in April after the pandemic sparked sweeping business closures and stay-at-home orders around the nation. Click here to continue reading the Las Vegas Review-Journal article.