Obstacles to a Successful Closing


Closing is the last hurdle to selling your home, buying your home, and getting the keys. It is a very common procedure, but it is also one that is incredibly stressful both for buyers and sellers. Let us give you some tips and tricks on how to make sure that these obstacles don’t trip you up on closing day.

1. The number one obstacle to closing is a clouded title. A clouded title means that clear title cannot be conveyed to the buyer for reasons that include previous liens or claims lodged against the property, long buried recording errors, title fraud, probate issues, or possible improper foreclosure. These are defects that must be cured before the title can be transferred.

2. A home inspection uncovers major defects. Most buyers agents will insert a clause in the contract called a “contingency clause.” These clauses can cover anything from financing falling through to allowing the buyer to exit the contract should major defects be uncovered in the property.

3. As I have mentioned previously in this blog, prequalifying for mortgage is not the same as being preapproved for mortgage. First-time buyers should seek preapproval to avoid this very thing. Banks can get twitchy about appraisals that do not match the proposed purchase price, sudden drops in the market, or a drastic change in employment or credit status. Even with a preapproved mortgage, having buyers should have this contingency clause in their purchase contract.

4. The home is uninsurable or uninsurable at an affordable rate. You may have your eye on the perfect place in Las Olas, and the mortgage payments may fit your budget. However, if you cannot obtain affordable insurance, your bank may refuse to make the loan for that particular property.

5. The seller or the buyer is unable or unwilling to make the deadline. Both buyer and seller are entitled to damages should one party or the other be unable to meet the deadline for closing, or moving in/out. Likewise, should the seller receive a better offer and break the contract, the buyer is entitled to damages.

6. The home is still occupied by tenants or by the seller after the agreed-upon vacation date. Unless a mutually agreed-upon date can be reached, even at this late date, the purchase contract could be voided.

7. Buyer or seller falls victim to a scam, or is otherwise unable to produce the closing fees on time for the closing to be completed.

Choosing a title insurance company is as important as choosing your real estate agent or inspector. A title insurance company with experience can help both buyers and sellers get to a successful closing every bit as much as their respective agents and other professionals. Having a clean chain of title to your home is possibly the most important aspect of home purchasing. While we can’t vouch for other circumstances, we are very proud of our work in making sure that our clients have best title possible to their property.


Founded in 2009 during one of the slowest real estate markets in the past half century, First International Title has grown from a handful of offices to over 30 offices throughout the state, from Key West to Pensacola, including its company headquarters in Coral Springs. We provide closing services in English, Spanish, German and French. With a combined 1,000 years of experience, our staff has extensive experience closing residential, refinance, reverse mortgage, short sale, REO, deed-in-lieu and commercial transactions. We do not outsource or offshore any portion of our core title services. We employ our own searchers and examiners to ensure quick turn times and accuracy. At First International Title, we put our customers first.

Tagged with: , ,
Posted in Real Estate, Title insurance
%d bloggers like this: