The process for a real estate sale transaction requires many details and a lot of moving parts. Everything needs to go smoothly so that a deal can actually close on your agreed upon date. However, there can be some snags that arise during the process and even up to the last minute. Some of these things can be within your control, while others will not. The bottom line is to be aware of what can happen so that you are best prepared. Here is a closer look at some potential issues.
Liens or Debts on Title
The title to your property allows you to rightfully own, use or sell your home. The title company that is hired to search and review any issues with the title will verify that it is a clear title and 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 changes hands.
Final Walk Through Issues
One of the last things to be done before the closing is a final walk through. These are typically 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 issues that come up during this event. Missing appliances, unexpected damages or the like are examples of what may arise.
Moving Day Mishaps
In most instances sellers will be completely moved out by the time of closing. 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 conflict. If one party needs to schedule alternate arrangements, they need to clearly communicate this both verbally and in writing.
While all buyers should get pre-qualified before even searching for homes, most will but issues can still arise. A buyer could lose their job or make a significantly large purchase like a new vehicle or the like that can jeopardize their qualification for a home loan. All sellers should be sure their offer letter is accompanied by a prequal letter at the very least.
Missing Closing Docs
There are several documents to prepare and sign for every closing. 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 is required to pay on the day of closing. It may be wise 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. Wrong addresses, unit numbers, misspelled names or the like can all happen. 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.
Buyer’s or Seller’s Remorse
There is not much you can do if someone changes their mind. However, ever buyer will put money into escrow as earnest money towards the closing. Should they change their mind they will forfeit these funds as a penalty. For sellers with cold feet, there is less to lose but they should really do a self check and ask themselves if staying is really the best financial, physical and emotional decision. There was a reason they originally decided to sell and should ask themselves why that has changed.
Death of a Buyer
It may sound rare or you may think it won’t happen to you, but it can and does happen. In the event that it does happen, 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.