Perhaps you are ready to purchase your dream home. You are looking forward to closing and picking up the keys to your new property.
However, it is best to anticipate an 11th-hour issue and have a solution at the ready. Here are four reasons your real estate closing could experience a delay.
1. Cloud on the title
The title company working on the home sale will commence a search to ensure the legitimacy of the title. A cloud on the title could exist for any number of reasons, from a paid debt that was not recorded correctly to an issue with a divorce decree to a delinquent property tax payment.
2. Final walk-through problem
The final walk-through is normally just a formality. However, the seller must make sure that all the agreed-upon repair work is done, and the house is in good, all-around working order.
3. Missing Closing Disclosure
The Closing Document, usually called the CD, basically outlines the closing costs and the buyer’s loan terms. The buyer should have this to review prior to closing. It is important to make sure agents are in touch with the title company and that the work is proceeding on a timely basis.
4. Document errors
Remember that documents can contain errors. Something as simple as a misspelled name or incorrect address can cause trouble at the closing.
Title problems represent 11% of all closing delays, but there are other issues that could cause an 11th-hour dilemma. With legal guidance, you can anticipate a resolution for many of the issues that might lead to a delayed closing—and look forward to picking up the keys to your dream house.