Handling Closing Problems and the Final Walk-Through

Article highlights:

• What to look for in the final walk-through
• Complications with delivery of mortgage funds
• Keys and other items to get from the seller

Problems can crop up at the closing table. Most of them are easily fixed, some will take additional time to iron out, and in rare occasions, you might have what is called a “dry closing”. This is when all the documents are in order, but the funds from your mortgage lender have not arrived in the bank account of the title or escrow company. Once the funds arrive and the proceeds are distributed to the seller, title company and real estate brokers, you will have possession of your new home.

The final walk-through

Do a final walk-through of your new home within 24 hours of closing to verify that nothing has materially changed since the home inspection, that the seller has completed any required repairs and has left the home in clean condition. None of the seller’s personal property should be left behind, unless it was included in the purchase contract. Make sure floors are swept, carpets vacuumed, bathrooms cleaned, kitchen-cabinet interiors wiped down and no mountain of garbage left on the curb.

During the walk-through, you should also find the manuals for appliances, furnace and air-conditioner. If the home you’re buying has automatic-garage-door openers, they should be left out for you to test. Run any appliances, hot and cold water, and flush the toilets to make sure they are working properly. If there are problems, or it appears that the owners can’t vacate the home and deliver it to you at closing, tell your real estate agent or attorney.

If there are any repair issues, work them out with the seller at closing. You can ask him to compensate you for uncompleted repairs or for newly discovered damage to the property. To eliminate tension, your requests for credit should be reasonable.

On closing day, the title company will have completed a title search on your new home to discover any issues that could cloud your title. These issues might have to be resolved at the closing by all parties. Your attorney should examine the property survey and the legal description to verify that the diagram accurately represents the parcel of land you’re buying. If there are problems with either of these documents, they need to be resolved at the closing while everyone is present.

Where’s the money?

Among the most nagging closing problems, is when the mortgage funds from your lender are late or fail to arrive. Most lenders today wire the funds electronically, routing the money from your lender’s account to the Federal Reserve and then on to the title company’s account. Depending on the time of day the wire was sent, the funds won’t always arrive in time. So the first thing you do when you walk through the door at your closing is, “Have the mortgage funds arrived?”

Lastly, make sure you receive all the keys: a complete set to every door lock in the house, basement, shed and garage. And don’t forget to get the alarm codes. If you bought a condo, make sure that you’ve received the mailbox, storage locker and unit keys.

While problems do unfold at the closing table, some foresight by you, your attorney and real estate agent can help avoid them.

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