After months of working to get here, closing day on your new home is finally approaching. The excitement is building inside of you as you look forward to finally taking possession of the property. But there is also anticipation, and rightly so. There are still quite a few things which could go wrong when closing a home.
Major problems in the structure of the home
The home inspection is just one of the many things that had to be done before closing. You were not expecting anything to come of it and only had it done because it was required by your lender. It is a good thing that it was, because the inspection came back with issues that were not foreseen. If you had not had the inspection done, you could possibly have lost your deposit, and been responsible for the repairs yourself. What can you do? If you still want the property, your real estate attorney may suggest that you ask the seller to fix the issues. In the meantime, you have the option to extend the closing date. Your real estate lawyer might also suggest that you ask the seller to lower the price of the property in exchange for you fixing the problem. Make sure to have a dependable estimate of what it will cost before making this deal.
Issues with the title
Just like the home inspection, you never suspected an issue with the title when you ordered a title search done, nor when you purchased title insurance. Unfortunately, the title search has revealed that there is a lien on the property due to back taxes. Your closing attorney can help to ensure that this is taken care of before the closing date. Once again, you can request that the seller handle it, or you can delay the closing date, and ask for the seller to lessen the overall cost of the home in exchange for you handling the title issues.
Either Party Backs Out
Even though you have a signed offer to sale, and sale and purchase agreement, either party might still back out on the sale. If you decide to back out on the sale for issues such as those mentioned above, you would likely incur no penalties. If you just changed your mind, or found a house you would rather have, you would likely lose your deposit. The same goes for the seller. If he or she simple decides not to sell to you, you can legally seek financial damages.
There are many other issues which could cause problem during closing on a home. If you have questions about closing, or any other real estate issues, give us a call today.