Closing on a real estate property is a very intricate transaction, requiring the oversight and input of many parties. The buyer, seller, estate agents, closing agent, and loan broker all have a vested interest in the interaction. However, sometimes miscommunication between the different parties or failures for one of them to fulfill their obligations can lead to issues which come up during closing. Because buying or selling a home is likely one of the most significant transactions most people make, it is important to understand some of the most common problems that can come up during the closing process as well as ways to prevent and address them.
Document errors, inconsistencies, and misplacement can create tremendous problems if they are not discovered until closing. Things like incorrect names, addresses, and monetary values on contracts are more common than one might think and it is important that you thoroughly read through all documents well in advance and double check with your agent that all information is correct. Mailing delays for loans or closing documents can also delay or defer closing if they are sent last minute. Ensure that all documents are in the correct person’s hands well before closing so that it can go as smoothly as possible.
Last Minute Property Discoveries
Sometimes, the seller will damage the property in some way during the move-out or the move reveals an issue with the property which until then was not apparent. In a case like this, it is important to immediately address the cost of repairs and either have them done at the sellers expense or negotiate a change in price or closing fee distribution. To avoid last minute surprises, make sure to thoroughly check the property with your estate agent and investigate the history of the property to try and unearth any issues which may be hidden. Some properties may have issues with the title itself. These can vary from disputed property boundaries to liens placed on the property from unpaid fines and taxes, even to legal claims about ownership of the house from relatives. Make sure to do your research about a property and personally obtain a title report well before closing to ensure that there are no unknown factors which could affect your purchase.
Real Estate Settlement Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.