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What problems can arise during a residential real estate closing?

Finding the right home can be a challenge for some Minneapolis buyers. After months of searching for the right house in the right neighborhood with the right amenities, it can seem like an eternity to finally get to the day of closing on the property. While many residential real estate closings go smoothly, there are some issues that can come up that can delay or even stop a residential real estate closing from happening.

The following paragraphs will discuss some of those issues, but individuals facing their own closing challenges are encouraged to meet with real property attorneys to discuss their specific legal difficulties.

First, a closing can be stopped if the home does not appraise for the amount of the purchase price. Lenders like banks are generally unwilling to give buyers more money than appraisers think they should need to buy homes and low appraisals can derail home closings. It is sometimes possible for buyers to secure additional appraisals to demonstrate homes’ values.

Second, problems with a property’s title can affect its closing. If there is evidence that a separate party may have an ownership interest in the property or that the seller does not have the right to sell the home, a closing can be stopped. Liens can also muddy a home’s title and make it unsellable.

Finally, a closing may be halted if a seller chooses not to go through with a sale. A seller could decide to stop a closing for many reasons, including but not limited to getting a better offer on the home or having a change of heart about moving. Depending upon the type of agreement that a buyer and seller had prior to closing, a buyer may be entitled to some form of damages from a seller’s unilateral withdrawal from the sale.

Closing on a home is an exciting event for many people. However, not all individuals who begin the home buying process actually get there. Attorneys who practice real estate law can help buyers work through the home purchasing process and find success as they approach their closings.