A real estate closing seems straightforward enough: You sign the paperwork, the seller signs, and you officially become the owner of the property. It is yours to do with as you choose from that day forward. For homeowners, this just means moving in, but investors may be interested in selling the property, upgrading it for a flip, and much more.
Even though this seems straightforward, it can lead to disputes. How might this happen? Here are three possibilities:
1. One of you wants to move the closing date
Investors rarely want to move a closing date because they need to acquire the property quickly to begin making good on that investment. If the seller asks you to move it significantly, this could lead to a dispute because you or your company was expecting to own that asset and cannot allow such a delay.
2. The value of the property changes significantly
Buying property takes time. There can be months between getting the loan, making the offer and closing on the house. If the value changes significantly, one side may suddenly not approve of the deal. For instance, a plummeting value may make a buyer feel they’re now paying more than the asset is even worth, while a skyrocketing value may make a seller feel that they’re not getting enough.
3. There’s confusion over the costs
Closing costs can be significant. They’re most often the responsibility of the buyer, but the buyer may ask the seller to cover them as part of the transaction. Confusion can lead to both sides assuming the other will pay, which leads to a dispute.
If you get involved in a dispute for any reason, you must know what steps to take to protect your interests. Working with an experienced real estate attorney is wise.