Situations that could interfere with real estate closings
For many people, selling and buying residential real estate can be quite challenging. From the negotiations, inspections and financing to ending the deal at the closing, the process is often fraught with many unexpected details that could threaten the sale of the home. Florida buyers and sellers may want to be aware of some typical derailments before they embark on a property transaction.
A common problem that can delay or stop the closing on the property is when the lender refuses to pay all of the purchase price. Such a scenario can occur if the appraisal on the home is lower than the loan amount. This may put buyers in a financial bind since they must pay for closing costs, insurance, the down payment and other fees.
A lender may also deny the whole amount of the mortgage if the applicant incorrectly filled out the mortgage paperwork. To ensure a smooth loan process, the applicant could contact the lender periodically so that any problems can be immediately resolved.
Another issue that could potentially threaten the sale of the home is a failed inspection. For instance, potential buyers may back out of the deal if the inspection reveals a termite infestation, issues with the home’s foundation or electrical problems. The seller could resolve the problems by negotiating a plan with the buyer. Buyers can opt to include contingencies in the purchase agreement, which legally allow them to walk away from the sale if these problems arise.
Before a real estate closing can occur, there are usually financial and legal matters to be resolved. For example, the buyer may have trouble obtaining a mortgage, or title issues and zoning laws may prevent the sale from occurring. In these circumstances, the buyer or seller may want to obtain legal counsel to help them solve any issues that are preventing the closing from occurring.