Closing on a property can be a joyous experience all around. However, there are times when a buyer might walk away before officially closing on a property.
Our team at Adam Diamond Law is experienced in helping both buyers and sellers close a deal. In this blog, we’ve explained why a buyer might walk away before the closing and what to do if this happens to you.
Why Might a Buyer Walk Away
- The home inspection discloses defects that the Seller is not able or willing to address such as:
- Electrical issues,
- Plumbing issues,
- Roof Issues,
- Radon Issues; and
- Mold Issues.
- The property does not appraise high enough for the Buyer to get their loan;
- The Buyer is not approved for financing;
- Title defects such as not having enough money to pay off mortgages or liens, judgements and other liens;
- Survey problems like a neighbor’s driveway or fence going onto your property;
- The Buyer does not like the homeowner’s association;
- The Buyer does not close on the sale of their home;
- You, as the seller are not able to completely move out before the closing;
- The property is damaged after the contract is signed and before the closing.
If your buyer is bailing out on the deal, the first thing you need to do is figure out if the contract has a contingency covering the reason why they are asking to get out of the contract.
A contract contingency protects both parties; it is a clause in your contract that gives you or the buyer an out if something unexpected happens during the buying process. A contingency is a qualifier of sorts.
You can think of it as a contract saying, “Yes, I’ll follow through and buy your home, unless…”
What Happens if a Buyer Walks
What is essential to know as the seller is to ensure that you have done everything you’ve agreed upon in the contract. This will be helpful to you if the buyer does decide to walk away before closing.
Another thing to do is to keep the home as sale-ready as possible. Having it always at sale-ready ensures a good show for inspections and appraisers.
What To Do If A Buyer Walks
One thing that could put you in a better position in case a buyer walks is having a backup offer (although it’s important to know that you cannot officially remarket your home until the contract’s cancellation and the deposit are settled).
Having a real estate expert to help through this process can help this process go smoothly. A closing attorney can help with the initial paperwork and make sure that the contract is being upheld and enable to pivot to a backup offer or remarketing.
Contact the office of Adam Diamond Law for more information
At Adam Diamond Law, nothing is more important to us than making selling your home simple, clear, and collaborative. That’s why we work hard and take the time to understand your unique situation.
Contact us today at 773-217-9623 so we can get started working together on selling your home.