Why does closing get pushed back

Some sellers are completely unaware that there were previous liens on their property and buyers face the frustration of waiting out these sometimes complicated resolutions. Title release tracking and title curative services are the most effective ways to safeguard against these costly delays. After title report issues, which can be minimized with release tracking services, most real estate closing delays come down to money. Even if a buyer has been pre-approved for a mortgage, they still must provide the mortgage company with a list of required documents prior to closing.

Mortgage gymnastics aside, there may be disparities in the figures on the closing documents that need to be explained or adjusted before the closing can move forward. Either a bank may ask for repairs before closing or another appraisal needs to be ordered, thus delaying the proceedings. Just because a home has been bought and sold several times does not make it immune to potential instrument survey issues.

A home of any age can run into boundary line encroachment disputes with regards to the land the home is situated on. Property lines, walls or fencing may become an issue, and closing can be delayed until all parties can settle discrepancies through signed affidavits.

Home inspections are done early in the process for a good reason. Sometimes buyers purchase additional things like boat lifts, wine refrigerators and furniture. Most contracts have a specific list of property that the seller is giving to the buyer and require sellers to remove all other personal property that is not physically attached to the home.

If additional items are left behind and the buyer does not want them, the buyer is in a position to negotiate a credit from the seller to remove these items, delay the closing until they are removed or sue the seller for breach of contract.

As we stated before, there are many parties involved in real estate transactions. Many associations charge fees for the preparation of these documents and, as a result of these sometimes hefty charges, many times sellers wait until the last minute to order them. Buying or selling real estate is a big deal.

Adam Diamond Law will be there to guide you through the process and ensure your legal rights are protected. Contact us for legal assistance during your next Illinois real estate transaction. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, I always urge you to contact a local attorney for advice pertaining to your specific legal needs.

Close Search. The property did not appraise for the purchase price. The seller was not able to complete all of the required repairs in time. The well and septic inspection disclosed issues that need to be addressed. The seller was not able to completely move out before the closing.

The seller left additional personal property. A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues. Another task that a real estate attorney will perform is a review of an instrument survey.

An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on. Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes. An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.

The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures. Prior to a closing in real estate, both the buyer and seller are given their respective closing figures. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.

They are being replaced by the closing disclosure and loan estimate. Lender Requires Additional Documents. When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?

In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved , then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed.

For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing. The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. There are tons of reasons why home buyers have home inspections.

After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession , in lieu of the repairs. Final Walk Through Problems. The final walk through is an important step in the real estate transaction, especially for a buyer.

A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through. You guessed it, the real estate closing is delayed! Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through!

The answer is obviously no.