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What issues during closing can derail a real estate purchase?

On Behalf of | Feb 28, 2024 | REAL ESTATE LAW - Real Estate Law

Reaching closing during a real estate sale can feel like an achievement. At this stage, the seller and buyer are tying up loose ends in preparation to finalize the purchase. However, some issues can still arise during this part of the process. Specific problems can require intervention, which can happen after closing. However, certain issues can be so severe that they can derail or cancel the sale altogether.

The rules for closing a real estate sale can vary from state to state, but any purchase can go awry because of the following problems:

  • Property inspections show severe damage to the property or pest infestations
  • Property valuations prove that the property’s selling price is significantly inaccurate
  • A title search reveals glaring defects and claims
  • The lender withdraws approval for the loan
  • New documentation shows that the property is in a risky area
  • Someone made a mistake left undetected until closing

Sometimes, a purchase may fall through because the buyer had a sudden change of heart. Any reason can be valid to cancel the sale. Still, some problems with the property can have legal implications, potentially causing a repeat with the next buyer if left unresolved.

Transferring property ownership rights is a big deal

Real estate purchases require extensive time, effort and money to keep all transactions legally sound. There is no shortcut to finalizing a sale, especially if there are multiple parties involved in the transaction. Guaranteeing a purchase’s success is impossible, but seeking legal counsel can help plan and prepare sufficiently every step of the way. Doing so can help detect issues and determine appropriate ways to address them, keeping the best interests of the seller, buyer and lender in mind.