As any real estate attorney can vouch to, many people begin the process of buying a home with optimism and excitement. Those same real estate lawyers can also share that all too often the process ends with disagreements and issues that were never anticipated by either party. As the saying goes, “An ounce of prevention is worth a pound of cure.” With that in mind, here are a few of the most common issues that are faced during the closing process.
Many buyers assume that if their closing attorney has conducted a title search, then there is no chance of having any issues with the property’s title. Unfortunately, this is not always true. There can be issues from the past on the title that owner might not disclose or even know about. These issues may not show up in a title search, but could cause problems later on for the buyer. Most of the time, title claims stem from issues that come from many years prior, and were missed during routine checks. This is why title insurance is so important, it can protect you from any issues which may come up with the property’s title.
Another problem that can arise during a property sale is the amount of the deposit to be made. If the sale is to be a quick one, with the closing date set for a month or less out, then this issue becomes less important. If the closing date is more than a month away, then the buyer may want less of their cash tied up in escrow, and might wish for a lower deposit amount. For the seller, however, it is better for the deposit to be higher. This protects them if, for any reason, the closing does not take place.
Most closing lawyers will insist that the buyer in any real estate deal hires a professional to conduct an inspection on the property. If there are any issues, such a structural problems, leaks, broken windows, broken locks, etc then the repair of such will usually be a condition of the sale. In most states, if the seller fails to take care of all of the repairs listed in the sale, then the buyer has the choice of either canceling the sale altogether, or postponing to give the seller time to get them done. Often, when this happens, the buyer will also ask that all or part of the escrow amount being held back for the seller be returned.
There are many more issues which can occur during the sale of property. For more information on how to prepare for a sale, give our real estate attorneys a call today.