Buying or selling a property can be an exciting time. However, it can also be a complex process. Real estate closings involve many moving parts, and issues can arise. In this post, we’ll explore five common real estate closing problems and provide tips on how to avoid them.
5 Real Estate Closing Problems and How to Avoid Them
Title Issues
A clear title is crucial for the sale of real estate. If the title has issues, it can cause significant problems. Title problems can include anything from ownership issues to liens and property judgments.
Conducting a thorough title search before closing is important to avoid title issues. Working with a qualified title company or real estate attorney can help you catch issues before closing.
Financing Problems
Financing issues can also be a common problem during real estate closings. These can include issues with the buyer’s credit, appraisal problems, or the lender’s underwriting process.
Getting pre-approved for a mortgage is one way to prevent financing issues from coming up at the last minute. Sellers could also require pre-approval before engaging with potential buyers.
Inspection Issues
Home inspections are an important part of the home-buying process. They can sometimes uncover problems you need to address before closing. It can include issues with the roof, foundation, or other major systems in the home.
You can make these issues more manageable by scheduling the inspection as early as possible. It will give you time to address any uncovered issues and ensure the home is in good condition before closing.
Contingency Failures
Real Estate transactions often come with various contingencies. Buyers, sellers, and lenders add them to protect their interests in various ways. If one party can’t meet a contingency, the other might be able to cancel the deal. For example, there could be a contingency for the buyer to obtain home insurance before closing. If they fail to get insurance on time, the deal could fall through. The best way to avoid contingency failures is to review the deal. Make sure you understand the contingencies and what you need to do to fulfill them.
Paperwork Issues
Paperwork issues can also be a common problem during a real estate closing. They can range from problems with the contract language to missed filing deadlines. There can also be issues with one party or the other filling paperwork out incorrectly.
Working with an experienced real estate attorney is always a good idea. An attorney can review documents and ensure everything is legal and enforceable. They can also ensure everything is complete, proper, and filed on time.
Want to avoid real estate headaches?
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Tennessee Title Services
Do you need help with a closing in Tennessee? Click here to contact Title Group of Tennessee. Our team can help avoid problems when closing on a home.
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