In nearly every residential closing, you'll face various contractual delays. From property appraisals to purchase agreements, you'll want to understand everything about the closing process. In order to accomplish a successful real estate transaction, many factors must work together in harmony.
With so many things to consider and likely a lack of experience in the real estate market, you may find yourself facing a range of issues before the closing date. An experienced attorney can guide you through these issues and mitigate surprises in your closing process.
Here’s what you need to know about residential closings:
- At Least 2 Property Inspections
- Property Appraisals
- Past Property Title Info
- Purchase Agreements
- Final Walkthroughs
At Least 2 Property Inspections
In the event that you are selling a property, a home inspection should be performed prior to your listing and soon after an offer has been accepted. It is crucial to examine each aspect of the property during the inspection. Inspections of this kind are critical, as they may uncover issues previously hidden to the owner's eye.
Structure issues, leaks, termite infestations, or other problems can slow down the closing process. In the event that the buyer does not want to deal with any issues, the seller will likely need to resolve them before a sale is finalized. If the issues are large enough to become a deal breaker for the sale, the buyer can walk away from the purchase.
Before you close on your residential property or even list your property for sale, you should consider getting an appraisal. The appraisal will often play an important role in appealing to the market prices and assisting a potential buyer's ability to get financing.
As a result, lenders are less likely to approve loans that exceed the sales price of a home if the appraised value is lower than the sales price. When the appraisal differs greatly from the sales price, the buyer may have to find additional funds to close the transaction. If this is the case, you could find it more difficult to sell your property.
Past Property Title Info
In the case of your property title, the closing process relies heavily on past property records, details and more. Issues here could result in a delayed closing. The title to a property establishes who has legal ownership of the property. A title search will be performed in order to confirm the seller is legally permitted to sell the property.
There is a possibility that a title search will reveal outstanding fees, such as taxes or liens, preventing the sale from proceeding. Another previously-unidentified co-owner, such as a bank, might also be revealed through the search. Issues such as these can be resolved or brought to a close with the help of a residential closing attorney.
To avoid a buyer or seller backing out of your purchase, your purchase agreement should properly establish your transaction. A purchase agreement should outline terms and conditions related to each party within the sale, and the actual transaction. These agreements can also outline situations that would require a buyer or seller to back out. These termination contributors can include inspection results, financing issues, and more factors. The chances of either party backing out of the deal are reduced greatly if all the necessary clauses and stipulations are in the purchase agreement. Staying on top of your responsibilities will make this outcome less likely, but unexpected issues can always occur.
Upon the closing of any piece of real estate, a final walkthrough must be completed. In this phase, the buyer will inspect the property to ensure that it looks the same as when the process began. Additionally, they will ensure that any repairs requested have been completed.
Repairs that are unfinished or new issues may delay the closing process. From leaky gutters and roofs to a broken heating and cooling system, issues that arise in a final walkthrough will need to be completed before a sale can be finalized. Getting legal assistance can mitigate these risks.
Contact Rochford Law & Real Estate Title
Hiring an experienced real estate attorney like Rochford Law & Real Estate Title in Nashville, TN can save you time and money in the long run. It’s best to cover all your bases and get through a real estate transaction with as little problems as possible. However, it’s comforting to know that should a dispute pop up, a real estate litigation attorney can help find a resolution.