Purchasing a house is a momentous occasion. Not only is it a personal milestone, it’s a form of a wealth that can be passed down to future generations. For this reason, the moment when the sale becomes final, known as the “closing”, is a celebratory moment. However, reaching this moment is easier said than done.
Every year, thousands of real estate closings are delayed, sometimes extensively, frustrating both the seller and buyer. The following are three common reasons for which closings can be delayed.
Mortgage issues
Even if the buyer has been pre-approved for a mortgage, issues can still occur. The mortgagee may require additional documents and information from the buyer which could delay the closing. Furthermore, lenders often change their mind before the closing.
Title issues
Issues with title frequently delay closings. Many homeowners are totally unaware that a previous lien or encumbrance is attached to the property. However, unlike most mortgage issues, problems with title can often easily be resolved by using a title curative service.
Repairs not completed
Many home sales are contingent upon the seller making certain repairs to the home. If the repairs aren’t completed before the closing, a legal battle may ensue. The buyer may demand a reduction in the house’s price or other incentives. All of this usually means the closing will be delayed.
Being prepared
Being involved in a real estate transaction means putting a lot at risk. There’s often a significant amount of money involved not to mention hard work and dedication.
For this reason, whether you’re buying or selling a home, having a real estate attorney by your side is invaluable. They can guide you through the process from the initial negotiation to the closing, ensuring you’re being treated fairly and your rights are protected.