Whether you’re buying or selling, getting to the closing on a real estate deal can feel like you’re finally approaching the finish line of a marathon – but don’t start celebrating too soon. There are a lot of things that can go wrong.
The closing is where contracts are signed, money changes hands and keys are passed over. That’s assuming that any of the following doesn’t get in the way:
The financing falls through
This can be painful for both the buyer and seller, but it happens. Financing can get held up because there are issues with the appraisal, the buyer went on a spending spree that affected their credit score or lost their job or they are the victim of wire fraud.
There are problems with the loan documents
This can involve mistakes, missing information or unclear terms in the closing disclosure documents that the buyer received before closing day, or something as simple as a misspelled name or another typo in the loan documents themselves.
The title is clouded
Title issues are among the most common reasons for closing delays. Common problems include undisclosed liens, boundary disputes and forgotten easements. Sellers need to be proactive about resolving title issues before they list, and buyers need to make sure that a proper title search is done before the big day.
The final walkthrough goes awry
That final walkthrough the buyer does is more than a mere formality – it’s the last chance they have to make sure that they’re getting what they expect. That means that the property hasn’t been damaged in any significant way since the deal was struck and all agreed-upon repairs have been done.
There’s no possible way to completely eliminate the chance that closing day will come and go without the deal going through, but you can mitigate the risk with the help of experienced legal guidance.
