What Are the Most Common Challenges Faced in a Real Estate Transaction?
August 15, 2023Real estate transactions can test your limits in many ways. Missteps can grow into legal issues and damage years' worth of financial investment.
Now, this is only the worst-case scenario. Dozens of closings take place all over Florida every day, with all parties involved feeling satisfied with the overall process. The point we want to drive home is that you can't have a successful closing without exercising due diligence, no matter which side you stand on in a real estate transaction.
Today, we'll discuss the most common challenges you can face during different stages of a real estate transaction, so you have the necessary resources to get ahead of any problem.
- Obtaining financing: You need to define your financial status before embarking on a real estate transaction, especially when it comes to investment properties destined to generate more revenue through rental services, resale, etc.
FortuneBuilders lists the main real estate financing options for different types of purchases. Mortgage holders and private money lenders have been a common choice for residential properties, but some buyers can get their financing through a beneficial agreement with sellers to sidestep negotiations with a seller.
- Time management: Many time-sensitive requirements can't be fit into a regular 9-to-5 work schedule. Getting hold of one agent can take longer than expected, and you need to plan multiple meetings while considering the availability of various relevant parties.
Communication is key to avoid last-minute inconveniences. When all parties are promptly updated about each development, it's easier to get through each step without reworking your schedule at each turn. This will also encourage cooperation between buyers and sellers.
- Breaching contracts and other legal issues: A breach of contract happens when the obligations stated in the sales contract are not met, even when sellers and buyers have agreed to these terms in advance. Some examples involve the property's price not aligning with its market value, delays to schedule property inspections, or one of the parties stepping down from an ongoing transaction.
Any of these issues can lead to a lengthy legal process if the parties at fault go on evading their contract obligations.
The website of Florida law firm Edward J. Jennings, P.A. states that how the role of real estate lawyer ranges from explaining the intricacies of a contract to drafting a contract from scratch. Lawyers can address a breach of the contract terms and even issue a lawsuit when negotiations fail to resolve the issue.
- Title searches and property inspections: Without the support of a real estate company, some hidden defects can escape the buyer's attention. For example, there are structural faults that can easily go unnoticed until years down the line, when they actively affect a property's value and safety conditions.
Title searches and multiple property inspections are basic steps to protect a buyer's investment. A title search will unearth liens, potential ownership disputes, and some issues that even sellers can be unaware of. Catching these problems on time can make all the difference in avoiding financial losses without delaying the settlement. Follow-up inspections are extra important when there are repairs listed in the sale contract. Even smaller details like cracked walls and peeled paint can compromise a property if they're not dealt with on time.
- The performance of real estate agents: The real estate industry is not free of questionable practices. Real estate agents can overlook important details, make intentional omissions, or be dishonest in their recommendations, all to complete a real estate transaction in less time.
Some real estate transactions can be understandably overwhelming for a single real estate agent. Beginner agents in particular can find trouble financing their operations while trying to sell themselves in the industry. This is why agents and clients often enlist the resources of a title and escrow company.
The client's peace of mind should always be the agent's number one priority; honest errors or small decisions made in bad faith can't be justified once they jeopardize that peace of mind in a tangible way.
Common Challenges of Real Estate TransactionsConcerns will shift from one point of view to the other. A buyer might not pay the expected deposits on time due to a lack of funds, or the seller could fall short when it comes to helping feedback, leading to unclear contractual obligations.
Sellers, lenders, buyers, and real estate agents have their own priorities while working toward a smooth process. That's why the input of real estate companies is so valuable, with many of these services overseeing the process from different angles.
Key Title & Escrow Helps You Face Any ChallengeNavigating a real estate transaction is a challenge all on its own. You don't need the stress of neglectful agents and shady business practices. Luckily, the best support system is right around the corner.
Key Title & Escrow helps you land the most beneficial deal, from drafting a thorough offer to safeguarding all your interests after getting word from the seller. As a seller, you can also get the best assistance to ensure that payments and other conditions are met before closing. We understand the local industry better than anyone and use that knowledge to help you plan ahead for any legal issue.
And if you're unhappy with your contractual obligations, our legal experts can help you fight for better terms according to what's reasonable under local real estate practices.
Key Title & Escrow offers the most thorough services to make your process go without a hitch. You can save time, fulfilling all the requirements in one place with reliable specialists who will always act with your best interests in mind. we combine years of experience in South Florida's real estate market with the latest technology to simplify the most demanding tasks. You don't have to look for other companies to conduct title searches and other record reviews, issue insurance policies, settlement services, etc.
Call (305) 235-4571 or toll-free at (800) 547-0006, and we'll be happy to assist you. You can also fill out the contact form on this page to learn more about our services, our team's credentials, and more. Get to the closing date without becoming overwhelmed by your real estate transaction. Key Title & Escrow is here to help you in any way you need!