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CLOSING PITFALLS Sign In/Join 
Picture of real estate lady
posted
A sharp Realtor will help their buyers and sellers and buyers avoid closing pitfalls. Here are a couple

Design contract to include seller move out 72 hours after closing.

Make sure buyers loan committment date is 5 days
before closing date.

How many can you think of and why?
 
Posts: 9182 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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As a seller make sure to tighten and end contingencies.
 
Posts: 2438 | Location: Southern CA (Southbay) | Registered: Nov 08, 2005Reply With QuoteReport This Post
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If you are the seller or seller's agent, be sure to not only order the preliminary title report at least 20 days in advance of closing but ALSO to review it closely to make sure there are no problems with the title.

DO NOT WAIT for the mortgage company or lending institution to give a thumbs up or thumbs down on behalf of the buyers (which might only come within 24 hours of a closing). For example, nothing k*ills a deal like discovering at the last minute that the widow/widower who is convinced that she/he owns the property never actually completed the necessary legal proceedings to prove that they are indeed the sole owner. Cool
 
Posts: 6487 | Registered: Jan 01, 2008Reply With QuoteReport This Post
Picture of real estate lady
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OH, yea, for real..just experienced that. Sold a house quick close, cash. Then boom, discovered probate was filed several weeks before. Listing agent had no idea. Now 3 months to close. Best for listing agents to get their game on at listing and pre-research title.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9182 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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In addition to the probate issue, there are a number of other pitfalls to closing that can be avoided by examining a preliminary title report early on in your listing if you are the seller. In fact, forget what I said about getting a report at least 20 days before closing in an earlier post.

You should actually obtain the preliminary title report when you decide to list so that you have plenty of time to correct any problems that it might reflect. Most people are absolutely positive that there are NO PROBLEMS so they get blind-sided when one arises and causes the deal to fall through.

Like what? A second mortgage or equity loan that has long been paid only the correct paperwork was never filed, a judgment or civil action that placed a lien on the property that has long since been resolved/paid but, once again, the proper paperwork was never filed to remove it from the records or any number of other matters that can cloud a clear title causing you to lose the sale.

Bottom line, never assume anything if you are the seller. Get your ducks in line and know that no problem will magically appear on the title just days or hours before your scheduled closing. Cool
 
Posts: 6487 | Registered: Jan 01, 2008Reply With QuoteReport This Post
Picture of Charming
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I learned a lot on a recent closing.

First, the buyers were from out of town and fell in love with the first house I showed them. They would not even look at other properties during their visit. The made a full price cash offer.

Home inspection - the house had been gutted following smoke damage and redone on the inside. That was disclosed by the seller. Unfortunately, the contractor did not obtain a building permit. Still claims he doesn't need one. During the home inspection we discovered there was no insulation in half the ceiling.

On my recommendation my buyers had a survey done even though as a cash purchase it was not required. The surveyor discovered - the house was about half on their lot and half on their neighbor's. :eed:

The other agent - thought the seller was covered by his Title Insurance. Nope! Because he did not have a survey done. Took about 2 months to resolve.

Then at closing. My buyers had contacted their bank. Gave them wiring instructions and it was discovered the bank would only wire the money if they applied in person! The nearest branch of their bank was in Georgia.

The attorney was going berserk! It was a real nail biter to get it closed. The attorney had her assistant at the county office to record and discovered the seller had left out a form.

Finally closed after much blood, sweat and tears by all of us.
 
Posts: 3401 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
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