Common Real Estate Closing Issues 

 Posted on December 30, 2024 in Real Estate Law

As exciting as purchasing a home can be, "it is not over until it is over," as the saying goes.  Before you finalize the real estate transaction and get the keys to your home, you must first go through the closing process. 

Yet closing can be complicated by many moving parts, and issues can come up that can cause delays or threaten the transaction. An experienced Hood County, TX real estate attorney can help you navigate any hurdles and protect your interests during the closing process.  

What Happens at Closing? 

Closing is the final step in the transaction to purchase or sell real estate. The parties to the transaction will sign all the necessary documents, including loan documentation if the buyer is purchasing the property with a mortgage. If all goes well, on closing day the buyer will take ownership of the property while the seller will receive payment.

The closing process usually includes the following:

• Title search

• Home inspection

• Lender appraisal

• A final walk-through of the property

• Signing multiple legal documents 

Common Issues at Closing

Given that closing can be complex and involve multiple parties including the buyer, seller, realtor, lender, and the parties’ attorneys, issues can arise that can slow down or even derail closing. 

Issues with Closing Documents

Even small errors in closing documents such as the closing statement or bill of sale can hurt the closing process as the parties work to fix the errors. These documents are necessary to complete the transaction, and if they are flawed or incomplete, that can be a problem.

Title Issues

If a title search brings up title issues this can cause delays or even sink a real estate transaction. For instance, a prospective buyer may run a title search and discover that the title is not clear and that a third party has an easement providing it with access to the land. The buyer may not want to proceed knowing these new facts, or may demand that the seller lower the price. 

Home Inspection Issues

If a home inspection reveals significant issues with the property, this can lead to disputes and delay closing. The buyer may also wish to negotiate additional terms in the purchase agreement to cover the cost of repairs, and the seller may not agree. 

Failure to Disclose

Closely related to home inspection issues, any failure by the seller to disclose major issues such as roof damage or mold can negatively affect closing. In Texas, sellers must disclose information about the home including environmental hazards, water damage, and structural issues. 

Contact a Hood County, TX Real Estate Closing Lawyer

If you are purchasing or selling real estate in Texas, an experienced Hill County, TX real estate attorney can represent you during closing. At Cain & Kiel Law, our attorneys assist buyers and sellers in the closing process and throughout your real estate transaction. Contact our law firm for a less stressful closing at 817-645-1717.