There are a lot of moving parts when it comes to closing on a home, and in order to avoid throwing a wrench in the works, it’s important to watch out for some of the more common snafus that can keep both the buyer and seller from closing on their desired date.

Snafu #1: Clouded Title

In order to sell your property, you must be able to prove your ownership is valid by having a “clear title.” For those not in the know, title is a collective term for your legal rights to own, use and sell any piece of real property, and it can become “clouded” by title issues that can bring the closing process to a screeching halt. 

Contractor liens, outstanding taxes, bankruptcies, or divorce decrees are all examples of defects that could delay your Fort Myers closing until they are resolved. That’s why your chosen title company will always perform a title search on the property being sold. That way, there are no unwelcome surprises lying in wait for the buyer.

If defects are found, they must be resolved before the closing can move forward. Sometimes defects such as misfiled records can easily be cleared up with a little bit of administrative help, while other defects can take weeks or months to clear, such as settling outstanding debts.

To avoid this issue, be sure to pay off any debts, loans, and taxes that may show up as a title defect against your property, since no buyer will ever be interested in inheriting those debts from you.

Snafu #2: Missing Closing Disclosure Form

The Closing Disclosure (CD) is a vital piece of paperwork that outlines the terms of the buyer’s loan and any other closing costs associated with the sale. The CD must be sent to the buyer by the mortgage lender no later than three days before closing so that the buyer has time to review the document thoroughly and acknowledge receipt.

If the buyer does not receive the CD in time, the closing will have to be delayed and rescheduled.

To make sure the CD is not sent out too late, it’s vital for both the buying and selling parties to stay in touch with the title company so they have all the information needed to pass on to the lender so the lender can send out the CD in a timely manner. Communication is key to ensuring a smooth and quick closing.

Snafu #3: Errors and Typos on Documents

Something as minor as a misspelled middle name or a street address that’s off by one digit can cause a bump in an otherwise smooth closing. Most people who show up to closing won’t have time to read through all their documents at the table, so it’s important to request your documents in advance and go over them with your real estate agent or attorney to make sure all the details are accurate.

At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.

Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: 3 Tips For Selecting Your Home’s Location

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