Why Real Estate Closings Get Delayed and How to Avoid It

Everyone involved in a real estate transaction wants the same thing: to close on time. Unfortunately, even a transaction that seems simple can hit a last-minute problem that pushes closing back.

Many closing delays are avoidable. Here are some of the most common issues we see in North Carolina real estate closings and what buyers, sellers, and agents can do to help prevent them.

One of the biggest causes of delay is financing. A buyer may be preapproved, but the lender still has work to do before the loan is ready to close. Underwriting questions, missing documents, employment verification, appraisal issues, or last-minute changes to the buyer’s finances can all slow things down.

Buyers can help by responding quickly to lender requests and avoiding major financial changes before closing. This is generally not the time to finance a new car, open a credit card, change jobs, or make a large unexplained deposit into your bank account without first talking to your lender.

Title problems are another common source of delays. Before closing, the attorney performs a title search to determine whether the seller can convey good title to the buyer. That search can uncover old deeds of trust, judgments, liens, estate issues, missing signatures, incorrect legal descriptions, or other problems that need to be resolved before closing.

The earlier the closing attorney receives the contract and begins the title work, the more time there is to address these issues. Sellers should also let the closing attorney know early if the property was inherited, is owned by a trust or LLC, is involved in an estate, or if there are other unusual ownership circumstances.

Payoff problems can also cause delays. If the seller has a mortgage, home equity line, judgment, or other lien against the property, the closing attorney may need an official payoff statement before closing. Some lenders provide these quickly. Others do not.

Sellers should provide accurate loan information as early as possible, including information about any home equity lines or other loans secured by the property.

Repairs and inspections can create problems when they are left until the last minute. If the parties agree that repairs will be completed before closing, waiting until the day before closing leaves very little room for unexpected issues.

Whenever possible, repairs should be completed early enough for the buyer to confirm the work before the scheduled closing date.

Survey and property issues can also appear late in the process. Encroachments, boundary discrepancies, access problems, shared driveways, or improvements located outside property lines may require additional investigation or documentation.

If a buyer wants a survey, ordering it early gives everyone more time to deal with any issues it reveals.

Another surprisingly common source of delay is simply missing information. The closing attorney needs information from multiple people and companies to prepare for closing. A missing payoff authorization, HOA statement, lender package, insurance information, wiring instructions, or other document can hold up the entire transaction.

Responding promptly to requests from the lender, agent, and closing attorney is one of the easiest ways to keep a closing on schedule.

Finally, remember that the scheduled closing date is a target that depends on a number of moving parts coming together. Buyers, sellers, lenders, agents, inspectors, surveyors, title companies, homeowners associations, and attorneys may all have a role in getting a transaction to the finish line.

The best way to avoid closing delays is simple: start early, communicate clearly, respond quickly, and do not wait until the week of closing to address known issues.

A smooth closing usually isn't the result of nothing going wrong. It's the result of identifying problems early enough that they can be fixed before they affect closing day.