It takes weeks or more for those buying a home in Illinois to go from an initial offer to the closing table. There are many steps that each party involved in the transaction will need to complete during those weeks.
Unfortunately, no matter how excited people are to move forward, things can still go wrong. A small number of real estate transactions in Illinois each year end not in the transfer of real property but in a cancellation of the closing. The following are some of the most common issues that lead to major delays and/or cancellations in closing processes for residential real estate in Illinois.
Issues with the property
Most people buying a financed home will need to have an inspection performed on the property. Sometimes, the inspection process turns up unexpected issues with the home. The buyer may no longer feel comfortable completing the transaction, and the seller may not agree to make any concessions given the defects uncovered. Other times, there might be an issue with the title records that will prevent the closing from moving head smoothly.
Issues with financing
Maybe one of the spouses who just made an offer on a home will lose their job next week. A sudden change in financial circumstances, including a drop in income, could easily lead to a lender refusing to finalize the mortgage. There could also be an issue with the appraisal coming in low, at which point the buyer would either need to produce liquid capital to cover their expenses or negotiate a new arrangement with the seller. Even when the buyer comes to the table with the pre-approval letter, there can still be issues that prevent them from successfully closing on the home.
Either party changes their mind
Those seeking to buy a property usually include at least a few contingencies in their offer paperwork so that they can cancel the closing without penalty. Sellers could just as easily change their minds about the sale, and the contract may give them the ability to do so. Not having anywhere to go might lead to a seller panicking and canceling the closing at the last minute when there is a lack of inventory on the market, for example.
The parties involved in real estate transactions need to be aware of issues that might prevent them from moving forward with a closing. Seeking legal guidance and being prepared for the various risks that can impact a scheduled closing can help people better navigate the complexities of Illinois real estate transactions.