Real Estate Closings

Common reasons real estate closings get delayed in Connecticut

Avoid these common delays to keep your closing process on schedule

Residential real estate home in Greenwich, CT

Published on

December 7, 2022

In this article:

Everyone’s time is valuable during the real estate closing process, and no one wants to see a closing get delayed, or worse, canceled due to avoidable mishaps. There are many moving parts and parties involved in a closing, so it’s not uncommon for some hiccups to occur. Here are some of the common causes of delays that we’ve seen while overseeing closings in Connecticut.

1. Delays with Mortgage Approval Process  

In our experience, delays most commonly stem from the buyer’s mortgage approval process.  Lenders will sometimes need more time than expected to organize, process, and analyze all the necessary materials — financial closing documents, home appraisal, etc. It’s also possible the lender will require additional documents or amended documents if any errors are made.

A closing date cannot be set until the lender gives the go-ahead to close, so the transition is really at the mercy of the lender’s timetable.  

2. Issues found during the walkthrough  

Just prior to the closing, buyers usually do one final walkthrough to check that no repairs are needed. If an issue is found, it can cause a small delay while a repair is made or a repair credit is negotiated.  

3. Seller relocation  

Property transactions can sometimes hinge on the seller making relocation plans, and delays with that can hold up a closing. We’ve also seen some cases in which a closing was held up while a tenant of the property relocates.  

4. Appraisal issues  

The appraisal - which lenders always require - is typically done within 14 days after the purchase contract is signed. However, it may take longer than that for an appraiser to become available. If the appraised value comes in lower than expected, a reappraisal may need to be done, adding additional time.  

An appraiser may also order repairs to be done before the sale closes. In this case, those repairs will add time, and the appraiser will need to return to check that the repairs were made.  

5. Inspection issues  

Issues that surface during the inspection that may require repair work, though these delays tend to be minor. Of course, the delay can grow if the necessary professionals are not immediately available.  

6. Open permits

If the seller has any building permits still open, they will need to get them closed with the town. This could cause a substantial delay, as you could be at the mercy of the town’s schedule.

7. Title Search Issues

If the title search reveals any unexpected liens, mortgages, or probate issues, this may delay the closing as the seller may need additional time to obtain releases, fix probate records, order payoffs, or negotiate payments.

8. You

Buying a home is time-consuming. You will need to be prepared to spend the necessary time filing paperwork, doing inspections, etc. The faster you get those things done, especially when responding to requests from your mortgage company, the more likely you will close on time.

About the author
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Pederson Real Estate Law

Pederson Real Estate Law is a boutique law firm based in Greenwich, Connecticut. We provide experienced, efficient legal services for clients in residential real estate closings —purchases, sales, and refinances.

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