The closing of title is the final step in a real estate transaction, where the buyer pays the seller the purchase price and the seller gives the buyer a deed to the property. However, getting to the closing can be problematic, as delays can arise for a variety of reasons.

Some closing issues relate to the seller’s right to convey the property without restrictions. A buyer must be sure that they are getting the property free from any third-party ownership claims or liens. The buyer verifies this through the chain of title or series of deeds recorded in the local land records office. If there is a problem, such as an old mortgage that has not been officially cancelled, there is a cloud on the title. Any title defects must be cured prior to the closing, and this can delay the process.

Another common obstacle is an issue with the property itself. Buyers should always inspect the premises to make sure that its condition is as expected. Inspections can frequently reveal problems, ranging from minor electrical faults to leaking roofs or major structural deficiencies. Once these are discovered, the parties must negotiate for repairs or an adjustment in the purchase price.

Other delays can relate to the buyer’s financing of the purchase. Mortgage lenders have multiple standards and requirements. Borrowers must prove creditworthiness, which entails supplying a great deal of personal financial information. Lenders also require an appraisal of the property. If there is a problem with the borrower’s credit or if the appraisal falls short of the lender’s expectations, the closing might be delayed or the deal may be in jeopardy. Another type of financing delay is simple administrative error. Loan documents may contain errors or may not arrive in time for the scheduled closing.

Closing delays are frustrating but they are often preventable. Sellers can minimize the chances of delay by carefully inspecting their property and either repairing defects or offering a credit to buyers. Sellers should also check the chain of title so that any problems can be fixed long before a sale. Buyers can help avoid problems by having their loans prequalified and by checking their credit reports for any inaccurate information. An experienced New Jersey real estate attorney knows how to keep the transaction on track and to remedy any mishaps.

The Law Offices of James C. Zimmermann carries on a full-service real estate practice from five office locations in Sussex, Bergen and Passaic counties in New Jersey. If you are buying or selling real property, feel free to call 973-764-1633 or contact us online for an initial consultation.