Protect Yourself When Faced With A Closing Mishap

The home buying process can be grueling, so the closer a buyer gets to the closing table, the more relief they feel. Unfortunately, for some people, this feeling of release is short-lived. Several things can go wrong to prevent you from closing on your dream home. Learn about a couple of the common issues, and how an attorney can ensure you are protected.

Seller Withdrawal

In the same way that you loved the property the first time you saw it, the person that is selling the home probably has even greater affection for it. For this reason, it is not unheard of for a seller to suddenly change their mind about selling their home, even after it is under contract.

If you put down an earnest money deposit, the seller is obligated to return these funds to you, but in some situations, getting this money back will not make you financially whole. For example, the buyer may have already sold their home and is living in temporary housing while they wait for closing. This buyer may be out of more money than just their deposit.

In this sort of scenario, an attorney can sometimes help the buyer recoup damages from the seller because after all, the seller and the buyer had a legal purchase contract. When the seller fails to meet their end of the agreement, they could face legal liabilities.

Inspection Surprise

The purchase of a home can easily exceed $100K, so it is important to know exactly what it is you are purchasing. Home inspections are intended to do just that, and sometimes, an inspection reveals information that can come as a surprise. 

Poorly wired electrical systems, botched roof work, and severe pest infestations are some surprises that can arise. If the seller presents the property in one way and the inspection reveals something different, the closing may need to be delayed. During this time, it is a good idea to have an attorney revamp the purchase agreement to add or update contingencies.

For instance, for a home with significant roof damage, you can include a contingency that requires the seller to repair the roof before closing, provide funds to you to have repairs performed, or to lower the cost of the home based on the cost of the repairs. Whatever option you choose, you need to ensure you are protected. 

This transaction is likely the largest one you will ever make in your lifetime; it is important to make sure your interests are protected. If you are confronted with a last-minute closing discrepancy, it is wise to speak with a law firm to learn what options you have and to ensure any money you have already invested is protected.