When a South Carolina home is up for sale, sellers and buyers typically want the closing process to be completed in a timely manner. In fact, this issue is sometimes a priority for a buyer or seller, and there will be a contingency incorporated into the deal stating that a closing must take place within a certain amount of time or by a specific date. Certain issues can cause closing delays, however.
A closing delay can lead to other problems, such as a buyer having to forfeit earnest money. It’s a good idea to learn more ahead of time about common issues that cause closing delays. This way, you might be able to avoid them.
Delay closings often occur because of finance issues
If you’re buying a house, your lenders (if you’re taking out a mortgage loan) will play a key role in the transaction. One delay can lead to another, meaning if finance issues arise that cause your lenders to delay loan approval, you may not be able to close on your new home by the date you initially had in mind.
Insufficient documents may cause loan approval problems, such as inability to verify income, lack of bank statements or external issues like child support payment history. This is why it’s always best to obtain loan approval before you even make an offer on a house.
If a problem arises with the title, it could delay the closing
A home carries a deed. The person whose name is on the deed owns the home. A deed is a physical document. A title is a “right to ownership.” In the past, unexpected issues regarding titles have arisen that have kept home closings from moving forward. Such issues include undisclosed liens on the property, forgotten heirs or forgeries.
A property survey might stir up trouble
What happens if a survey of the property you want to buy or sell sparks legal problems? For example, what if there is an encroachment issue, such as a neighbor’s fence being built over the boundary line of the property that’s for sale? The reverse could also be problematic—what if the home being sold has an outbuilding, fence, wall, etc., that is encroaching on a neighbor’s property? Such issues would have to be resolved before a closing could take place to sell the home.
Discuss closing delays ahead of time with an experienced sales agent
Ask your real estate agent what usually causes closing delays. An experienced agent understands such issues and can recommend ways to avoid them. If a problem does arise, your agent can help protect your interests and help you resolve the issue as swiftly as possible.