10 Common Closing Delays & How to Avoid Them
Getting a real estate transaction under contract is exciting, but there are still several important steps between an accepted offer and the closing table. Even a well planned transaction can encounter unexpected issues that slow things down.
The good news is that many common closing delays can be prevented, or at least addressed more quickly, with good communication and preparation.
Whether you are buying, selling, or helping a client through a transaction, here are 10 common issues that can affect the closing timeline and what you can do to help keep things moving.
1. Title Issues
A title search may uncover liens, judgments, ownership discrepancies, probate matters, or other issues that need to be resolved before the property can transfer.
How to help avoid delays: Open title as soon as possible after the contract is executed. The earlier the title work begins, the more time there is to identify and address potential concerns.
2. Missing or Incomplete Information
Incorrect names, missing contact information, incomplete documents, or unanswered requests can create unnecessary delays in the closing process.
How to help avoid delays: Provide complete and accurate information to the title company early and respond promptly when additional documentation is requested.
3. Financing Changes
A buyer's financial situation can affect loan approval right up until closing. New debt, large purchases, job changes, or unexplained deposits may require additional lender review.
How to help avoid delays: Buyers should stay in communication with their lender and avoid making significant financial changes before closing without first discussing them with their loan professional.
4. Survey Issues
An existing survey may not be acceptable for the transaction, or a new survey may reveal encroachments, boundary concerns, easements, or improvements that require additional review.
How to help avoid delays: Determine early whether an acceptable existing survey is available or whether a new one needs to be ordered.
5. Repairs That Are Not Completed
When repairs are required under the contract, waiting until the last minute can create problems with inspections, documentation, or lender requirements.
How to help avoid delays: Schedule agreed upon repairs early and keep invoices, receipts, and other documentation that may be needed before closing.
6. Appraisal Problems
An appraisal that comes in below the contract price or identifies property conditions that must be addressed can affect financing and the closing timeline.
How to help avoid delays: Buyers, sellers, REALTORS®, and lenders should communicate quickly when an appraisal issue arises so the available options can be evaluated without losing valuable time.
7. Homeowners Insurance Delays
For financed purchases, buyers generally need appropriate homeowners insurance in place before the lender can complete the loan process.
How to help avoid delays: Buyers should begin shopping for coverage well before closing rather than waiting until the final few days.
8. Last Minute Contract Changes
Changes to the sales price, credits, repairs, closing date, or other terms can affect documents and figures being prepared by multiple parties.
How to help avoid delays: Communicate amendments promptly and make sure the title company and lender receive copies as soon as they are executed.
9. Closing Funds Are Not Ready
Waiting until closing day to arrange funds can create delays, particularly when a financial institution has wire limits, transfer requirements, or other restrictions.
How to help avoid delays: Confirm the amount and approved method for delivering funds in advance. Never rely on emailed changes to wiring instructions without independently verifying them by calling a trusted phone number.
10. Final Walk Through Surprises
The final walk through is intended to confirm that the property's condition is consistent with expectations and that agreed upon repairs have been completed. Discovering an issue just before closing can delay the transaction.
How to help avoid delays: Sellers should have the property ready as agreed, and buyers should complete the final walk through with enough time to address concerns before the scheduled closing.
Communication Is One of the Best Tools for a Smooth Closing
No two real estate transactions are exactly alike, and not every delay can be anticipated. Getting information to your title and lending teams early, responding promptly to requests, and addressing potential issues as soon as they arise can make a significant difference.
At Integrity Land Title, our team works throughout the transaction to help identify title requirements, coordinate the closing process, and keep everyone informed as you move from contract to close.
Have a transaction coming up? Contact Integrity Land Title today and let us help you work toward a smooth, successful closing.