After you have spent weeks or months going over a real estate transaction, you would think that everything will be resolved by the time you need to close the deal. And yet, there is always the risk that something bad will happen at closing, resulting in potentially serious and costly legal issues. Here are just five of the potential problems that can happen at closing:
- Financing falls through at the last minute
- Most real estate transactions these days are done with a mortgage, generally meaning the buyer needs to obtain pre-approval for financing before the sale can go through. However, there is always the risk that the financing will fall through at the last minute, right before closing. If this happens, you may need a lawyer to help rescue the deal from falling apart.
- Inspections reveal structural defects
- Ideally, inspections for a property should occur long before you are set to close on a sale of that property. However, there is a chance that an inspection will reveal a previously unknown structural defect, endangering the deal. This may include water or mold damage, an infestation of rodents or insects, the presence of toxic materials, or code violations from unlicensed or DIY work.
- Previously unknown title issues emerge
- A title search is one of the most basic tasks that a real estate attorney will typically carry out as part of a real estate transaction. This search is meant to discover any potential title issues, such as an unpaid mortgage or lien against the property, undisclosed easements or covenants, or disputes over property boundaries. If these issues are not discovered until late, there is a risk that they may emerge at closing, putting your transaction at risk.
- Documents turn out to be fraudulent or erroneous
- Generally speaking, people can be entrusted to be forthright and careful when they submit legal paperwork for a real estate transaction. However, there is always the risk that some of the paperwork will turn out to have fraudulent or erroneous information. Without a lawyer present, there will be potentially serious ramifications to closing on a deal with this kind of faulty documentation.
- The other side gets cold feet
- Real estate transactions are the biggest financial transactions that most people will make in their lives, and that can engender a lot of anxiety. It is thus unsurprising that some people get cold feet at the last minute, getting second thoughts at closing. A real estate lawyer can help negotiate any last minute anxieties, helping the deal go through as intended.
At David J. Lorber & Associates, PLLC, we assist clients throughout New York who are looking to buy or sell real estate. We will guide you through the process and help you minimize your legal and financial risks. Call us at (631) 750-0900 or contact us online to schedule your Free consultation at our Setauket office.
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