When I decided to buy my first home in Miami, Florida due to my wife's pregnancy the deal blew up in less than 45 minutes into the closing. I was going to sell my 1 bedroom condo on Brickell Avenue and purchase a 3/2 home in Coconut Grove on the same day! What could go wrong?
The Buyer of my apartment came to the closing but could not close the deal due to late arrival of the bank funds. The Tile Company refused to close that afternoon and wanted to do it the next morning.
Well needless to say, I was MAD!
I was going to use the excess monies from that Brickell Avenue deal as a down payment on the Coconut Grove purchase.
The current owner of the Grove House threatened to take my $12K deposit since we couldn’t close on the contracted date.
Thank God I had an attorney draw up the contract. There was a "subject to funding" clause in the contract
Note: Always have a Real Estate Attorney review your contract template. Check our Service Providers List for our preferred real estate attorney in South Florida.
The next day we closed but I couldn't sleep that night.
Soooooo….just because you have a contract doesn't mean you're going to close!
Below is a list I put together with help from Joseph F. Suarez that provides Ten Reasons Why Your Deal Fails at the Closing Table! (Sellers Beware):
- You Contract is not Correct – Too many mistakes can occur right here like wrong Platt numbers, improper property description, wrong dates, etc.
- No Financial Commitment By the Buyer
- No Money in Escrow
- No Money in Escrow
- Title Problems
- More/Different Sellers on Title
- Seller Not on Title
- Illegal Title Transfer
- Buyer has Collections & Judgments
- Check out the Buyer
- Deteriorating Market – Current Real Estate Market
- Deteriorating Market Value
- Deteriorating LTV Ratio .
- Deteriorating Interest Rates
- Open Permits and Liens – Hurricane Andrew caused a lot of problems with Open permits in Southern Dade County. I can’t tell you how many times I have been nailed on this item!
- Fraud/Foreclosure/Google – Again, Buyer Beware!
- Water & Waste Lien – This problem appears a lot with commercial properties that only have one water meter.
- Property Doesn't Qualify for Financing – Tax rolls list it as a 2/1 one but you think you are buying a 3/2 Uh?!
- Uninsurable Property – Property in a Flood zone, property not up to current code, etc.
Related Links, Blog Postings, Presentations or Articles:
| Written by +Bob Burns. | |
 | Yeah Baby! Real Estate Investor about.me/RobertKBurns Telephone #: 305-586-5280 email: rkburns@investmentpropertiesmiamiflorida.com |
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Thanks for sharing the nice point related to real estate business....
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I would like to say this is the best blog that I have ever come across. Very informative. Please write more so we can get more details.
ReplyDeleteGreat article with lots of informative information. I have been at the closing table only once before for one of my
ReplyDeleteCharleston real estate listings and the outcome was eerily similar to the one you experienced. I am impressed you are offering valuable information on what to expect for people who have not yet been in this situation. I wish I would have read this blog on my first go round but there is always next time! Happy Holidays
Another informative blog… Thank you for sharing it… Best of luck for further endeavor too.
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