What Can Go Wrong at a Real Estate Closing in Florida?

A real estate closing is more than a formality and a matter of signing papers. A real estate closing protects buyers from hazards like the ones discussed in this post. In fact, in many cases, a real estate closing is the last chance to avoid such hazards. Generally speaking, these transactions are difficult to undo, absent clear evidence of intentional fraud.

A St. Petersburg real estate lawyer maximizes these protections. A lawyer is a buyer’s only true advocate in these situations. Real estate agents, even agents that technically represent buyers, are only interested in commissions. A St. Petersburg real estate lawyer, on the other hand, is only interested in you.

Title Issues

Surprisingly, easy-to-resolve title issues are near the top of the list of potential hazards at real estate closings.

Before a sale is finalized, the buyer’s title company must perform a title search to ensure the seller has legal ownership of the property. This search is not very thorough. Usually, title companies only look at official documents and don’t closely examine these issues.

Therefore, problems like unpaid liens, unresolved judgments, or ownership disputes often remain. For example, if the property has an unrecorded lien or if there is a dispute about who owns the property, the closing cannot proceed until these issues are resolved.

Sellers are legally responsible for conveying good title, but buyers must sit and wait while sellers take such action.

Inspection Issues

Buyers usually have access to preliminary inspection reports well before a closing date. But the final report may be unavailable until the eleventh hour. If the inspection reveals significant issues like structural damage, mold, or plumbing problems, a buyer has the right to renegotiate the price or request repairs.

Failure to agree on repairs can delay the closing or even cause the deal to fall apart if both parties cannot reach an agreement on who will cover the costs.

Undisclosed Problems

These problems usually include prior property condition matters, such as previous flooding, mold, or foundation issues. Under Florida law, sellers have a duty to disclose such matters prior to the closing. But in this imperfect world, for one reason or another, people don’t always do what they’re supposed to do.

A St. Petersburg real estate lawyer usually ensures that the aforementioned home inspection goes beyond the property’s current condition and also looks for prior issues, mostly through public records.

Closing Document Issues

Common problems include errors in the deed or the mortgage paperwork, which can hold up the transfer of ownership or final loan disbursement.

Florida has a high percentage of LEP (limited English proficiency) buyers. These individuals might not spot such technical errors, especially if the document is in Legalese instead of English.

HOA and Community Restrictions

In Florida, many homes are part of a Homeowners Association (HOA). Sometimes, the buyer must get approval from the HOA before the sale can go through. HOA issues, such as unresolved fees, violations, or lack of approval, could delay or even halt the closing. HOA restrictions may also impact the buyer’s intended use of the property, leading to last-minute negotiations or the cancellation of the sale.

Connect With a Hard-Working Manatee County Lawyer

Sellers and buyers both have important legal rights in Florida. For a confidential consultation with an experienced real estate lawyer in Bradenton, contact Drude Tomori Law. After-hours visits are available.

Source:

consumerfinance.gov/ask-cfpb/what-is-a-mortgage-closing-what-happens-at-the-closing-en-176/