What Can Go Wrong in a Real Estate Closing?

 Posted on March 31, 2025 in Real Estate

Buying a home is exciting, and the personal and financial payoff can be gratifying. Selling a home can be exciting, too, as it can mean a new beginning or financial reward for a wise real estate investment. And yet, while some parts of the home purchase and sale process (like the search for the perfect property) may be fun, there are parts that are undeniably stressful.

That is even more so if something goes wrong during the real estate closing, potentially jeopardizing the transaction. But things do go wrong during closing sometimes. By having an experienced Greenwich, CT real estate lawyer, you can have a skilled advocate by your side to prevent issues at closing.

What Happens at Closing?

During closing, the buyer and seller finalize the transaction, which includes not only completing and signing all the documentation related to the purchase or sale of the house and the financing, but also completing a final walk-through of the property. 

What Can Go Wrong at Closing?

Financing or Down Payment Issues

If the buyer is unable to obtain financing or the money for the down payment, perhaps because of an unexpected financial situation or a loss of employment, this can put a serious damper on the transaction. 

Home Inspect Reveals Significant Issues 

The final walk-through should not generally reveal any big issues. After all, by this time the buyer has ideally seen the property several times and conducted an expert inspection. Life is nothing if not unexpected, however. If the final walk-through reveals a big issue that the home inspection missed, if there are significant issues that occurred after the inspection but were not disclosed, or if agreed-upon repairs have not been completed, the transaction could suffer. 

Someone Changes Their Mind

If one of the parties changes their mind about going through with the purchase or sale, this can obviously lead to issues at closing. The outcome will depend on the terms of the purchase agreement. An experienced real estate attorney can also assist with calming any last-minute cold feet. 

Disputes About Closing Costs

The real estate contract should address closing costs. However, if closing costs rise significantly above what was expected, or if the contract is vague on closing costs, there could be disagreements at closing. 

Call a Greenwich, CT Real Estate Lawyer

At Ivey, Barnum & O'Mara, LLC, we advise our clients on the purchase and sale of real estate. Our experienced New York Metro Area residential real estate attorneys can represent you in the purchase or sale of property to minimize any closing issues, or to help resolve any that come up. Call our office at 203-661-6000 for a complimentary consultation today.