Of course, purchasing or selling a property is a significant financial transaction that requires careful planning, coordination, and execution. Unfortunately, even with the best intentions, closing delays can occur, causing frustration, stress, and financial losses for all parties involved. The good news is that many of these delays are preventable with proper preparation and attention to detail. In this blog, we will discuss some of the most common preventable property closing delays and how to avoid them.
- Failure to obtain necessary documents — Though a seller isn’t required to submit documentation once a purchase contract has been agreed upon. There are certain municipal documents that must be shared prior to closing. It isn’t uncommon for these documents to be left to the last minute. To avoid delays, requesting municipal documents immediately following contract approval would provide enough time for the township to process the request and provide the documentation.
- Issues with title searches — Another common cause of property closing delays are issues with title searches. A title search is conducted to verify that the property being sold has a clear title and that there are no heirs, outstanding liens or judgments against it. If any issues are discovered during the title search, they must be resolved before the sale can proceed. To avoid delays, it’s good practice to provide the title agency with the full names, including other aliases, that the buyer is known for. This assists in weeding out non-related issues.
- Home inspections — Home inspections are another critical part of the property buying process that can derail a purchase. Inspectors may identify issues with the property that need to be addressed before the sale can proceed. Negotiating home inspection repairs to come to an agreement that is fair and reasonable for both parties is a delicate process. To avoid delays, make sure to put the agreed repairs and payments as an addendum to the purchase agreement.
- Communication breakdowns — Finally, communication breakdowns between the parties involved in the transaction can cause significant delays. Most delays happen because one party needs more time or there are problems presented during the walk through that need time to be resolved prior to the closing. Delays can be avoided by continually communicating and confirming in emails what was discussed. This will ensure that all parties are on the same page.
Obviously, property closing delays can be frustrating and costly for all parties involved. Fortunately, many of these delays can be prevented with proper preparation, attention to detail, and effective communication. By addressing these common causes of delays early in the process, buyers and sellers can avoid unnecessary stress and ensure a smooth and timely closing.