How Realtors Delay Closings

Realtors typically do not have direct control over the loan closing process, as this primarily involves the lender, the buyer, and the seller. However, there are a few indirect ways in which a realtor might inadvertently contribute to delays in the loan closing process:

1. Incomplete or Inaccurate Documentation: If a realtor fails to ensure that all necessary documents are completed accurately and on time, it can cause delays in the closing process. This might include incomplete purchase agreements, missing addendums, or incorrect information on paperwork.

2. Poor Communication: Effective communication between all parties involved in the transaction is crucial. If a realtor doesn’t communicate important information promptly or adequately, it can lead to misunderstandings or missed deadlines, causing delays.

3. Inspection and Repair Negotiations: If negotiations between the buyer and seller regarding inspection results and requested repairs become protracted or contentious, it can delay the closing. Realtors can play a role in facilitating productive discussions to avoid these delays.

4. Failure to Address Contingencies: Realtors should help ensure that any contingencies outlined in the purchase agreement are met within the specified timeframes. For example, if financing or appraisal contingencies are not addressed in a timely manner, it can slow down the closing process.

5. Title Issues: Problems with the title search or title insurance can cause delays in closing. Realtors should assist in identifying and addressing any title issues promptly.

6. Delays in Scheduling Appraisals or Inspections: Realtors may be responsible for scheduling appraisals, inspections, and other necessary assessments. If these appointments are not scheduled promptly, it can lead to delays in the closing process.

7. Failure to Coordinate with All Parties: Realtors need to coordinate with the lender, title company, buyer, seller, and any other relevant parties to ensure a smooth closing. If there is a breakdown in coordination, it can result in delays.

Realtors are typically motivated to close deals efficiently, as their income is often tied to successful transactions. Deliberately delaying a loan closing can lead to legal and ethical issues, and it’s not in the best interest of the realtor, the client, or the real estate industry as a whole.  Click HERE to see if you qualify for a free review of your debt-to-income (DTI) ratio.