A lot has to happen from when a buyer first puts in an offer on a home to the day final closing documents are signed. In the weeks between when the offer is accepted to when the title is transferred, financing may need to be secured, the title will need to be examined, the home needs to be inspected and appraised, and any final negotiations must be wrapped up. Even the slightest delay in any one of these areas can push back your closing date.
In this post, we’ll discuss a few common issues that cause delays in closings and steps you can take to prevent them (spoiler alert: find yourself a good team!).
Common Issues that Cause Real Estate Closing Delays
- Issues with the property title – First up is title issues. Problems with the property’s ownership history may include undisclosed liens, unresolved judgments or claims from previous owners. By working with a reputable title company, you can identify and resolve any title issues before the closing. Purchasing title insurance can also protect you in case any title defects emerge after the closing.
- Challenges with financing – Financing-related issues can cause delays or even jeopardize the closing. Buyers should stay in close communication with their lender and promptly provide any requested documentation to help ensure an on-time closing.
- Home inspection red flags – Any issues found during the home inspection may lead to delays with closing if they are not promptly negotiated and addressed.
- Contingency concerns – Residential real estate contracts may include contingencies, such as the sale of the buyer’s current home or the successful completion of a home inspection. If these contingencies are not met within the specified time frames, it can lead to complications, delays and potential contract termination.
- Errors in closing documents – Closing document errors are another cause for delays. They can also lead to legal complications. It’s crucial for all parties involved to carefully review the closing documents and work with a real estate attorney to ensure there are no discrepancies or errors.
One of the keys to preventing delays during this high-stress period is to ensure strong coordination among parties and maintain open lines of communication. Save yourself the headache of dealing with closing issues by working with experienced professionals. Our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Titles Services, Inc. have completed hundreds of closings in the greater Miami area and are ready to help you with yours. Contact us today to learn more.