One of the most exciting days in any real estate transaction is closing day. The day the sale is finalized is one of triumph for the buyer, seller, and their real estate agent. Unfortunately, even the most organized and thorough realtor can find themselves dealing with less than pleasant closing day surprises. No matter how hard you work to prepare yourself and your clients for the big day, it is not unusual to be blindsided by something out of your control at the last minute. Being aware of a few of the most common closing day surprises can increase your chances of overcoming professional adversity if you are faced with any of these last minute problems.
An issue that occurs more often than some realize is a misunderstanding regarding what items are included in the sale. During the initial walkthrough and subsequent inspections, a buyer may fall in love with a specific aspect of the house such as an appliance, decorative ceiling fan, antique appliance, or even playset in the backyard. If a buyer made a final decision based on certain features of the house, he or she may be unpleasantly surprised to find those items missing during the closing day walkthrough. While people have canceled closings over appliances or other items that the seller took with them, you may be able to convince your client to overlook the absence. In the future, avoid the situation altogether by carefully outlining what stays and what goes in the sales contract.
Money Transfer Problems
Transferring funds is one of the primary pieces of business that occurs on closing day. If problems occur that prevent money from being transferred, then everyone involved can end up in an extremely awkward situation. Common issues that occur are parties not having certified funds, incorrect bank account numbers, or unexpected expenses. A few ways to plan for these scenarios is to double check what forms of payment are accepted and verify that all of the account numbers you have are correct. Also, be prepared to pay for any unexpected items such as an unpaid utility bill or shortfall due to someone being told an incorrect amount.
Mortgage Approval Issue
Perhaps one of the most stressful and unpleasant closing day surprises is finding out that the buyer no longer has a lender. Any changes in credit such as opening a new line of credit, failing to pay bills on time, or getting a new job could all lead to a lender withdrawing an offer to finance a mortgage. If your buyer’s lender is no longer willing to finance the sale, then closing cannot occur until another lender is found. The best way to avoid dealing with this type of scenario on closing day is to have the buyer check with his or her lender one or two days before closing to make sure there are no issues that would prevent them from finalizing the purchase.
When the Unavoidable Happens, Get Help
There are times when all of your hard work and foresight still does not prevent a problem that you cannot fix from occurring. When you find yourself faced with a closing issue that you are not sure how to overcome, contact the Adam Law Group. Our team of Real Estate attorneys are here to provide you with the legal representation necessary to manage, or completely avoid, common closing day problems. Contact our office today at 904-329-7249 to schedule a consultation at our Jacksonville office so that we can begin discussing your legal needs.