Closing is one of the final and most important steps for both buyers and sellers in any real estate transaction. Even if everything seems to be on track, however, things can still go wrong that can hold up or even derail the closing and the transaction.
If the buyers are relying on a mortgage to pay for the home, the lender is a crucial party to the transaction, and issues with the loan or even the company can make the needed funds unavailable. Even a cash purchase doesn’t ensure that the closing will be free of problems. A lot of money needs to be moved, and that sometimes doesn’t go off without a hitch.
Paperwork issues large and small can also cause delays. Everything from a misspelled name to an incorrect address can be a problem. That’s why it’s critical that all documents are checked and double-checked. The earlier an inaccuracy is spotted, the easier it is to get it corrected prior to closing.
Title issues can be especially problematic
Title issues can cause a serious delay that could snowball, causing other agreements to expire and require myriad changes of plans. For example, a mortgage approval may have an expiration date.
Both buyers and sellers require a clear title for a sale to close. That’s why it’s crucial to ensure that there are no liens, lawsuits, unpaid taxes or fees or other issues that “cloud” the title.
If you’re buying a property, you should ask for a copy of the preliminary title report from the title company if you don’t receive one. Since titles can be difficult to read for the average person, it’s wise to reach out for legal guidance to make sure that someone who can spot issues that might not be obvious has examined them so that they can be fixed or otherwise addressed prior to closing.