The process of purchasing a home can be both exciting and stressful, even if everything goes smoothly. When there is a hiccup in the closing process, however, delays can occur which can extend the time you have to wait to close. It's important to keep a watch out for the most common reasons for closing delays.
Top Reasons for Delays in New York Residential Closings
If you have contracted to purchase a home and have negotiated with a seller to have improvements or repairs made on the property, you anticipate this work being done correctly. A final walk-through of the property before you close may uncover work which was not done or was completed improperly. Depending on the work that must be done to make you comfortable to move forward with the closing process, shoddy or incomplete renovations or repairs may hold up your closing date.
When you purchase a home, a title search will be conducted to ensure that the seller of the property is the true owner and has the capability to sell. If a title search uncovers a defect in title--more commonly known as a "cloud" on the property's title--curing the defect so that you can have marketable title to the property can take some time. Common issues which can be uncovered in a title report include liens and judgments attaching to the property, improper deeds in the chain of title, or easements that you were not aware of.
When purchasing a home or piece of property, it's always a good idea to have a survey performed, especially if a survey on the property doesn't exist or is several years or more old. A survey determines the lines of the property, and can uncover problems known as "encroachments." Examples of encroachments include your fence intruding onto a neighbor's property, or someone else's home being partly on your property. Depending on how difficult the problem is to cure, your closing could be delayed if an encroachment is uncovered.
If you are taking out a home loan in order to purchase your property, your lender will require an appraisal of the property. The results of an appraisal can be detrimental to your ability to purchase a home--your lender will only issue you a loan for what the property appraises for. If your contract price is higher than the appraised value of the property, you will either need to negotiate with the seller of the property to lower the sales price or come up with the difference in costs out of pocket.
The process of underwriting a home loan can be tedious and lengthy. Sometimes, issues will come up in this process which can delay your closing. Such issues include changes in employment, incurring more debt during the closing process, or a change in your credit score.
Ready to Close? We're Here to Help
If you are purchasing a home in New York City, it's important to enlist the help of a competent real estate attorney who knows the ins and outs of real estate closings. For more information on the closing process or to schedule your closing with Melvin Monachan, fill out an online contact form or call (347) 620-0565 today.