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What Can Go Wrong During a Real Estate Closing?

What Can Go Wrong During a Real Estate Closing?

The time between contract and closing can be stressful for both buyers and sellers. Numerous hurdles could delay or kill a possible deal. Here is some of what gets in the way of real estate closing.


The buyer needs to have the money to complete the purchase. However, lenders may not like what they see in the buyer’s file. Some borrowers may have been pre-qualified but were not pre-approved, and their financing could fall through. Alternatively, the buyer’s financial situation may have changed since they were pre-approved.


The buyer’s inspection may turn up issues that need to be resolved before closing. The parties could disagree over whose responsibility it is to fix the issues. The buyer sometimes threatens to walk away from the deal over inspection issues because they either reduce the value of the home or mean more money out of their pocket.

Title Issues

A buyer must be allowed to take full possession of the home free of any encumbrances. If there are liens or any other clouds on the title, the mortgage lender will not finance the transaction. Sometimes a title search will reveal problems that could put the deal in trouble.


Financing could fall through when an appraiser says that the house is worth less than the purchase price. Then, the lender is worried that they could be left holding the bag on a property that is worth less than the mortgage. This could be resolved by reducing the sales price or by the buyer putting up more cash.

Experienced Encino Real Estate Litigation Lawyers

If you are in litigation because your deal has fallen through before it could close, contact a real estate attorney at The Urbach Law Offices online or call us at 888.212.9071.