What are the most common issues that arise during pre-closing?
During pre-closing certain issues may come up which need to be resolved or the purchase agreement will become void. Following are the most common issues that arise with a solution to resolve:
Unsatisfactory home inspection:
If the fix is major, you may want to split the cost of the repair with the buyer, or give the buyer a cash credit at closing to cover the repair. If the fix is minor or you are selling in an active market, your sale might go through without any concessions on your part. Make sure that your sales contract is specific in its inspection contingency and doesn’t allow for the entire transaction to be renegotiated on the basis of the inspection.
Your deal could fall through if the lender refuses to issue a mortgage because the appraisal came in lower than the agreed-upon sales price. If this occurs, ask for another appraisal or renegotiate your price. It is helpful if you make sure your home is in top condition.
Cloud on the title:
Title problems can take several forms, including unsatisfied liens against your property, delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy. It is helpful if you check your own title before you put your condominium on the market.
Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the consequences. Try to work with the buyer’s agent to determine the problem. You may be able to suggest a solution that reassures the buyer and rescues the deal. It can help if you understand the buyer’s motivation before you accept an offer.