Not all real estate transactions proceed according to plan. Closing on a residential or commercial property may prove stressful, especially if you face a delay.
Hold-ups happen from time to time, so before your stress level reaches a fever pitch, familiarize yourself with some common reasons behind closing delays.
Is there an unresolved property issue?
A final walkthrough of a property is something critical to closing. This allows the buyer to ensure that everything is in working order and according to any remedies set out in the contract. If an element of the property is not quite right, it needs fixing before closing can proceed.
Is there a document error?
You may not care if there is a misspelling or a typo in a closing document, but banks and title insurance companies do. When you get to the closing table and spot a mistake in a document, it may cause a pause until rectified. You may cross out and initial minor errors, but some require rewriting and possibly a change in terms.
Is there a problem with the title?
Almost nothing can cause a closing delay as often as a problem with the title. Without a clean title, free of encumbrances, the transaction cannot proceed. An encroachment, such as a fence or an easement that runs through the property, is a typical obstacle in gaining a clear title of the property. The sooner you can look at the title insurance, the better.
Closing on your dream property may have to wait until you sort out the details. However, in the long run, it is worth that extra time.