Mississauga Home Evaluation Pitfalls before Closing

Written by Posted On Monday, 10 February 2014 04:02
Joe Battaglia Real Estate Agent Joe Battaglia Real Estate Agent

Once a seller receives and accepts an offer to purchase, they normally breathe a sigh of relief and start planning for the closing day. Unfortunately, there are many things that can happen during the time between the offer to purchase is accepted and the actual closing. During this time there are many things that are found that could potentially have a negative impact on the Mississauga home evaluation or value. Although these issues can cause major delays, or possible cancellations, they should be known by both buyers and sellers prior to any transaction.

1.Clouds On The Title – After there is an accepted offer to purchase, the title company (this is the company that handled title insurance) will perform a title search to see if there are any clouds on the title. Clouds are any negative claims, liens or other legal “rights” imposed on the property by a third party. This may include the local taxing authority, the CRA, contractors who performed work on the property and many other different possibilities. If there is a cloud or claim, the title company will require that it is cleared up and resolved prior to issuing a clean title. After these clouds are removed, the title company will issue proper title insurance which protects against any future claims.

2.The Home Inspection – The home inspection is a great safeguard for both buyers and sellers to ensure that the property‘s condition is completely known. During the home inspection period, the third party home inspector will outline any deficiencies and provide a complete evaluation. If this evaluation indicates there are major problems, most offers to purchase include a contingency that allows the seller to cancel the offer with no penalty. In addition, the home inspection may indicate that there are issues that need to be resolved through repairs or money being credited to the seller. This could delay the closing and have a substantial impact on the selling price. A Mississauga real estate agent is able to assist during this process and is fully educated on how to handle home inspection issues.

3.Appraisal Returns Not High Enough – After the accepted offer begins to be processed, the lender will conduct an appraisal to validate their involvement. The bank wants to ensure that the property’s value is at least the equivalent of what it is being purchased for. The appraisal is one of the key pieces of information that the bank will review to confirm their involvement with the property and process the loan. If the appraisal indicates that the property’s value is lower than what it is being purchased for the bank will not be able to recover any losses if there is a foreclosure or other action. This issue must be avoided and it is imperative that the property is being valued properly at all times.

There are many issues that may come up after an offer to purchase is accepted. Although these could have an impact on the closing date, or actual sale, buyers and sellers should be aware of these issues, how to prevent them and the impact they have.  For further information on the pitfalls to be aware of with the closing of your home or to obtain a Mississauga home evaluation and Mississauga House Prices contact Joe Battaglia and visit us as Mississauga-Homes.com

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