Many people searching for the right property report difficulties understanding the entire real estate purchasing process. With that in mind, understanding everything you need to know about closing on your new property can be extremely beneficial in the long-run.
The real estate sales process can be confusing for those without the abundant experience of a real estate attorney. There are a lot of terms that don’t come up in day-to-day life like escrow, lien, and easement. Those entering the process often find that it doesn’t tend to be as straightforward as they might think.
With property closing as the end goal, there are a lot of things that have to be aligned for this to be completed. Many of the steps leading to closing can add unforeseen headaches, and delay your final transaction.
To avoid a delayed closing, here’s what you need to know:
- Make Sure You Have All Documents
- Set a Realistic Timeline
- Handling Appraisals
- Title Issues
- Repair Timelines
- The Final Walkthrough
Make Sure You Have All Documents
If you’re a first-time buyer, you’re likely to be overwhelmed or even shocked at how many documents go into the closing of a property. Most documents protect all parties involved—the buyer, the seller, and the lender, so they all hold a lot of importance.
With an abundance of documents comes an increased chance of something being neglected. This can often lead to a delay in your closing process. Many of these documents require verification and signatures from particular parties and missing one of them could lead to a slew of other issues. Making sure you have all the documents needed with appropriate signatures will be extremely helpful during your closing process.
Visit Rochford Law & Real Estate Title for help from an experienced real estate attorney today!
Set a Realistic Timeline
When purchasing a piece of real estate, delayed closings can occur not only from a lack of documents but from an unrealistic timeline. Working through appraisals, inspections, and other transaction contingencies can take time.
As a buyer, you’ll want to ensure these processes are completely thorough so as to make sure you don’t have to deal with extra costs or hazards in the future. Rushing anything in the realm of real estate can result in various issues leading to a delayed closing. A knowledgeable real estate attorney will insist the inspectors have adequate time to perform their duties and help you set a realistic timeline goal.
Typically, after an offer is accepted on a piece of real estate, the lender involved will issue an official appraisal. The value of the property as reflected by the appraisal can impact not only the taxes paid for the piece of real estate over the following year, but also how much the property itself is worth. The value also matters to the bank because they are in the business of getting their money back. They don’t want to hand out a large loan for a property that doesn’t show much promise as security for the loan.
If you land with an appraisal that comes in far below the asking price for the property, various issues can arise. These issues can sometimes send the buyer and seller back into negotiations and can lead to a delayed closing. A real estate attorney can help you handle these issues as they come and make sure you stay close to your realistic timeline.
Title issues can lead to significant delays in the closing process. With the help of a real estate attorney, these issues can usually be cleared up with a little bit of work and advice, but it can often take some time.
As there are many possible problems that a property owner can face with a title, it is essential to learn about these problems as early as possible to avoid delays. Possible issues can include:
- Boundary disputes
- An unknown will
- Public records errors
Before closing day, property inspections are another necessary contingency. Inspections are performed so that the buyer is aware of any potential issues with the property, and protects them from being tasked with costly repairs in the future. Any issues found during the inspection will want to be negotiated with the seller to avoid delayed closings. Oftentimes, many of these issues will be fixed before the buyer signs any papers, but certain repairs may take more time if there is a long list of issues.
The Final Walkthrough
As the buyer, you will likely get to take one final pass through the property before closing day. You’ll want to look to make sure there aren’t any unresolved issues with the property, and check for any new damage. Any issues found during this walkthrough can lead to delays in closing, but with the help of a real estate attorney, these issues can likely be mitigated. Issues found during the final walkthrough can often include new damage, faulty repairs, or incomplete repairs. Be sure to take the extra precautions by thoroughly walking through your new property before closing day.
John Rochford is an experienced real estate attorney. Visit Rochford Law & Real Estate Title for help with your real estate transactions today!