Buying a property is a big investment, and when you find the perfect home, you want the closing to go as quickly and smoothly as possible. Though it can in many circumstances, there are a few problems that can derail your purchase during closing. Keep in mind that most of these problems are things you can solve with enough time, but knowing what to expect can help you be better prepared. Here are some of the most common problems that Minnesota real estate attorneys see during home closings.
Unclear Ownership
In most transactions, it’s clear who has the right to sell the property, and typically, that person is the seller you’re working with. Prior to closing, your real estate attorney and the title insurance provider should perform a title search to verify ownership and ensure that there are no conflicting claims to the property. If there’s another potential owner, you may not be able to close on the property until the dispute is settled.
Outstanding Liens
If a homeowner falls behind on their taxes or obligations to another person or organization, they may end up with a lien on the property. If the seller doesn’t repay their debts, the lienholder has a legal claim to the sale of the property. If you purchase a home with a lien, there’s a chance that you’ll become responsible for the debt owed. This is why outstanding liens typically delay or derail home closings. If a lien is discovered, don’t close on the property before the lien is settled by the seller. This can take several weeks or months in some cases.
Problems After Home Appraisal
If you’re financing the purchase of your new home, your lender will need to appraise the home. This helps them determine if the home is worth at least what you’re borrowing. If they determine that the property is not worth the loan amount, you may not be able to finance the purchase without scheduling another appraisal or potentially finding a different lender.
Unresolved Contingencies
If you listed contingencies with your offer and the seller agreed to them, they’re required to live up to that agreement. For example, say you learned that the plumbing around the water heater needed to be replaced, and the seller agreed to replace it when they accepted your offer. If they don’t replace the plumbing by the time you close on the home, they’re in violation of the contract and your closing could be delayed.
Weather Delays
In most real estate transactions, the seller needs to be able to move out before you can take possession of the home and move in. Depending on the season and the seller’s timeline, severe weather like blizzard conditions or heavy rainstorms can create delays and keep their moving team from being able to do their job.
How to Protect Against Problems
Working with a Minnesota real estate attorney is a simple way to protect yourself and your real estate transaction from these problems. How? Your real estate attorney will be able to research the property before closing to make sure that there are no liens or defects with the title. If there are issues, they’ll make you aware long before you’re at the closing appointment.
Your attorney can also guide you through the closing process as the big day gets closer to help make sure you have everything lined up for a smooth transaction. If there are any concerns or issues, they can help you figure out the best next steps.
Schedule a Consultation Today
If you’re trying to buy a home, set your closing up for success and take the stress out of the buying process by working with an experienced Minnesota real estate attorney from the beginning. At Waypoint Law, our team is here to help. Contact us today to schedule a free consultation.