Last Minute Closing Issues and How You Can Avoid Them
The process for a real estate sale transaction requires a lot of moving parts where everything needs to go smoothly so that a deal can actually close on your agreed upon date. However, there can be some hurdles that arise during the process and even up to the last minute. Some of these things are within your control, while others are not. The bottom line is to be aware of what can possibly happen so that you are best prepared. Here is a closer look at some issues that can arise.
While every buyer should get prequalified before searching for homes, most do but financing issues can still arise. A buyer could lose their job or make a significantly large purchase like a new car or the like that can jeopardize their qualification for a home loan. All sellers should make sure their offer is accompanied by a prequal letter at the very least.
Liens or Debts on Title
The title to your property allows you to rightfully own, use or sell your home. The title company will search and review any issues with the title so that a sale can be made. However, sometimes issues arise where there may be an unpaid debt that needs to be taken care of before the property can change hands.
Moving Day Mishaps
In most instances sellers will be all moved out by the time of closing as they should be. Buyers should also plan on moving in after the closing as well. However, it has happened where each party gets their signals crossed and move-in day timing creates some conflict. If one party needs to schedule any alternate arrangements, they need to clearly communicate this verbally and in writing.
Missing Closing Docs
There are countless documents to prepare and sign for every closing, but one of the most important is the closing disclosure form. The buyer must receive this ahead of time of the closing so that they know exactly all terms including what they are required to pay on the day of closing. It is a good idea to be in regular contact with all parties to ensure this gets delivered on time.
Incorrect Closing Docs
Issues can arise on closing docs where there can be mistakes whether it’s wrong addresses, unit numbers, misspelled names or the like. If possible, you may want to preview these docs prior to the closing day. Most real estate attorneys will help you avoid these issues when you hire them.
Final Walk Through Issues
One of the last things to be done before the closing is a final walk through of the property. These are usually conducted once the seller has moved out and the property is in the condition that it will be once conveyed at the closing. At times there can be a few issues that come up during this event. Missing appliances, unexpected damages or the like are examples of what may transpire.
Buyer’s or Seller’s Remorse
There is not much you can do if someone changes their mind about buying your home. However, ever buyer will put money into escrow as earnest money towards the closing. Should they change their mind they will lose these funds as a penalty. For sellers with cold feet, there is less to lose, but they should do a self check and ask themselves if staying is really the best financial, physical and emotional decision. There was a reason they originally chose to sell and should ask themselves why that has changed.
Death of a Buyer
You may think it won’t happen to you, but it does happen. In the event that it does occur, remain in regular contact with the buyer’s representation as the sale can still go through, but just anticipate a closing date to happen later on.
Do you have questions about the buy or sell process? Feel free to reach out and ask. I am happy to assist you.