Real estate deals are often killed or stalled because of common mistakes on either the seller or buyer’s part. Some mistakes can be worked through with a real estate lawyer, but others could be irreparable. Home sellers and buyers should be proactive in avoiding making mistakes that could prolong the time it takes to sell a home or kill the deal entirely.
Selling a Home After Divorce
When former spouses are on the title for a home, a problem could arise with getting the former spouse to sign off on the sale after a divorce. It is better to find out sooner rather than later whether an ex-spouse will hold up the sale of the home. It is advisable to have a preliminary title report run before putting the house on the market. This will alert the seller of any problems with claims on the title that could jeopardize the sale.
Failing to Disclose Issues with House
Home sellers are motivated to sell, and sometimes will try to keep quiet about potential issues with the home. Eventually, that moldy basement or sinkhole in the backyard will be found out by the buyer. It is better to disclose issues with the home before they are uncovered by the buyers or their inspectors after signing a contract.
No Permits for Remodeling Work
If improvements were made to the home and done without proper permits, this could hold up a sale. When inspections will be required with the sale of a home, it is advised to clear up any issues as early as possible.
Boundaries and Easement Issues
Issues can arise when property boundaries are questionable. It is a good idea to have a survey done by a professional surveyor. While a survey is not cheap, arguing over lot boundaries will be costlier and could delay the sale of the home.
Buyer Borrowing Issues
Buyers who pre-qualified and were pre-approved for a mortgage could suddenly no longer meet their lender’s requirements. The buyers could have opened new lines of credit or made a major purchase like a car. The lender might have suddenly changed requirements. It is a good idea for buyers to leave their loan contingency in place until funding comes through when signing the purchase agreement.