| You receive an offer on your home, you negotiate the price, you get through the buyer’s inspection, and you wait for your closing date to receive your proceeds so you can move on, but then there’s a delay. There are many reasons closings get delayed, and here a couple that I have seen recently.
My seller owned a condominium which I sold to one of my buyers and after all the negotiations and inspections were complete, we found out there was a law suit against the developer for construction deficiencies. The buyer and seller still wanted to move forward, but neither party had an estimate for how the settlement could impact the association dues or if there would be an assessment. The closing was delayed by 45 days to gather the settlement information. My clients agreed to split the assessment charges, and rescheduled a closing date.
In another case, my seller sold their home to a buyer that needed the proceeds from the sale of their home to close. The buyers for my listing sold their home to a buyer that also needed the proceeds from the sale of their home to close. All 3 homes were scheduled to close, one right after the other, on the same day. A week before closing, the buyer, for the first home, scheduled to close, lost his job, and no longer qualified for his loan, so all 3 home closings were delayed. Luckily, that home was put back the market and sold again in a day, so the closing wasn’t delayed for long.
In the condominium market, I see many lenders that tell their buyers they can do a loan, but ultimately end up denying the application. This can cause delays, as the buyers must find a new lender. It is very important to work with a condominium expert, if you decide to purchase one, to avoid many issues that can arise with them.
Another common cause for closing delays are non-compliant septic systems. Now that road restrictions are lifted, the contractors are very busy, so it is important to get your inspection sooner than later, to assure you are compliant by closing.
An experienced real estate agent, can help you get through closing delays, and keep your sale together.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet, who lives and offices in the Chisago Lakes Area. Submit your questions to firstname.lastname@example.org. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.