You’ve found the home of your dreams. You’ve gone through all the steps of the buying process. The last step of the process is closing on the transaction.
While this is typically cut and dry, it’s possible for problems to arise when closing on a home. If this happens, you may soon find that you are unable to take ownership of the property on that day. And as you know, there’s nothing more disappointing than that.
Here are some of the potential problems that can arise:
— The bank won’t fund the purchase. This can happen for many reasons, including an appraisal that comes back low. A problem like this should be discussed well in advance of closing, but you never know when something could slip through the cracks.
— Title concerns. A homebuyer should do a title search before closing on the home. They should also purchase title insurance. If an issue arises, if the seller is trying to hide something, it could delay the closing.
— The seller backs out. Unfortunately, there are times when the seller backs out at the closing table. There are multiple reasons for this, such as a better offer on the table. In this case, you may be in position to recover damages from the seller.
You can hope that everything goes as planned at closing, but there is no way of knowing for sure. This is why you need to be prepared during every step of the process.
If for any reason your deal doesn’t go through, it’s never a bad idea to look into your legal rights.
Source: FindLaw, “Problems When Closing on a House,” accessed Feb. 03, 2017