Buying a property can be both exciting and daunting for most individuals, especially if they are a novice at real estate investing. Having your closing date delayed due to last-minute issues is actually the last thing you need to come across on your home buying journey.
Below are four typical problems that can occur at closing and how you can prevent them:
Whether a name has been misspelled or address numbers are transposed, there is a wide range of mistakes in closing documents that could bring your transaction to a stop. You can prevent this by going over the paperwork as far in advance of the close as possible, and having your attorney review the documentation as well. Be sure to question anything you do not understand.
Some buyers come to the close and discover that the money for the purchase has not been transferred to the closing agent from their bank. The most effective way to make sure that funds clear in time is by sending them via a wire transfer. In the event you don’t know the exact final amount needed, send a little more than you think is required so as not to delay the close. You will receive a refund for any overpayment.
The lender is going to send the final loan paperwork to the closing agent, but at times they do not arrive in time for the close. To prevent this, talk with your agent well before the close and ask whether everybody involved has all they need. Also, be sure to get in touch with the lender one or two days before your close to confirm they’ve cleared the loan file to close.
#4: Clear Title
If the title company uncovers a lien on the property, this is going to delay your close. Be certain you ask for a copy of the preliminary title report and examine it for possible issues. Remember, you’re not covered by title insurance until after the closing date.
Our real estate attorneys represent parties on either side of real estate and financing transactions, including buyers, sellers, landlords, tenants, lenders, borrowers, trustees, guarantors, shareholders, partners, and others. We advise, structure, negotiate, and document a variety of real estate and financing transactions, including leases, purchase and sale agreements, financing agreements, and development agreements for a variety of commercial and residential projects. Contact us today and learn how we can help.