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 cancelling of a real estate closing, including;
1. Property doesn’t appraise
2. Discoveries on final walkthrough
3. Lenders asking for more information or documents at the last minute
4. Buyer doesn’t have enough money to close
5. Tenant or seller hasn’t moved out of property
6. Discovery of a lien on the property
7. Errors in documents
8. Home can’t be insured – a hurricane is approaching and insurance companies stop insuring property
9. Large differences between the good faith estimate and final closing statement
10. Inspections Reveal Major Problems with the House
11. Unfinished repair work
12. The buyer’s existing home sale fall through
13. The seller’s new home purchase falls through
14. Condominium hasn’t issued 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. Seller doesn’t show-up to closing and no keys are to 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
Read: 19 Reasons To Hire a Real Estate Lawyer When Buying or Selling Florida Real Estate (From Our Blog)
You may also be interested in:
- Anatomy of A Florida Real Estate Closing
- Frequently Asked Questions Regarding Real Estate Closings
- Duties of a Closing Agent
- Real Estate Pre-Closing Checklist
- Lost or Misplaced Deeds – Do You Need Your Original Deed When You Sell Your Home or Refinance?
- 3 Common Forms of Ownership of Florida Real Estate
- 3 Steps to Adding a Name to a Deed
- 9 Common Real Estate Contract Conditions
- 7 Things to Know About Real Estate Inspections
- Time is of the Essence – What it means and cases we may use to win a case.
- Can You Sell or Refinance Your Home in Florida If You Have A Judgment Against You?
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