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20 Common Problems that Cause the Delay or the Cancelation of a Real Estate Closing

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20 Common Problems that Cause the Delay or the Cancellation of a Real Estate Closing

In most Florida residential real estate transactions, when there is no time of the essence provision in the sale and purchase contract, it is sufficient if the closing takes place within a reasonable time after the time named in the contract.

When a time of the essence provision is included in a contract, the terms of the contract will control as to when the closing must be completed and when a breach occurs, although the parties may also contract to limit damages in the event of a failure to perform by a certain date.

We have compiled a list of common problems that often cause a delay or canceling of a real estate closing, including;

1. The property doesn’t appraise
2. Discoveries during a final walkthrough
3. Lenders asking for more information or documents at the last minute
4. The Buyer doesn’t have enough money to close
5. Tenant or seller hasn’t moved out of the property
6. Discovery of a lien on the property
7. Errors in documents
8. The home can’t be insured – a hurricane is approaching and insurance companies stop insuring property
9. Large differences between the good faith estimate and closing statement or closing disclosure
10. Inspections Reveal Major Problems with the House
11. Unfinished repair work
12. The buyer’s existing home sale fell through
13. The seller’s new home purchase falls through
14. The Condominium hasn’t issued a certificate of approval or provided an affidavit regarding a notice of commencement (stating that the condo has enough reserves on hand to pay for work performed)
15. The Seller doesn’t show up to closing and/or no keys are given to the buyer at closing
16. Bank proceeds have not been received by the closing agent
17. Payoff figures from the existing lender are in dispute
18. Seller or buyer doesn’t bring identification to the closing
19. FIRPTA withholding requirements – Seller doesn’t want sale proceeds held and paid to the IRS
20. Realtor commission disputes

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