Common Issues That Could Delay a Closing

Common Issues That Could Delay a Real Estate Closing (and How to Prevent Them)

Closing day is one of the most exciting milestones in a real estate transaction — but sometimes, unexpected issues can push that date back. Whether you’re buying, selling, or refinancing, understanding common closing delays can help you avoid them altogether.

At Arizona Premier Title, we believe prevention is the best strategy. Here’s what you should know.

1. Title Defects

The Issue:
A title defect means there’s a problem with the legal ownership of the property. This could be anything from unpaid liens, boundary disputes, or even errors in public records.

The Impact:
Until the defect is resolved, the title company cannot issue a clear title — which means you can’t close.

How to Prevent It:

  • Order a title search early in the process.

  • Work with an experienced title company to resolve any red flags quickly.

  • Make sure all previous debts, liens, or judgments are cleared before closing.

2. Appraisal Disputes

The Issue:
The lender orders an appraisal to confirm the home’s value. If the appraisal comes in lower than the purchase price, it can create a problem.

The Impact:
A low appraisal can cause financing delays or even force renegotiations.

How to Prevent It:

  • Price your home realistically based on market data.

  • If you’re the buyer, be prepared with additional funds or be ready to negotiate.

  • Consider providing the appraiser with a list of upgrades and comparable sales.

3. Last‑Minute Lender Conditions

The Issue:
Even if you’re pre‑approved, your lender may request additional documents at the last minute — such as updated pay stubs, bank statements, or explanations for recent credit changes.

The Impact:
Failure to provide these documents quickly can delay the lender’s “clear to close.”

How to Prevent It:

  • Respond to your lender’s requests immediately.

  • Avoid making large purchases or opening new credit accounts before closing.

  • Keep your financial documents organized and updated.

4. Unverified Funds

The Issue:
If your funds for closing are not considered “good funds” — meaning immediately available and guaranteed — the title company cannot disburse money and close the deal.

The Impact:
Personal checks or unverified transfers can delay or even cancel the closing.

How to Prevent It:

  • Use a wire transfer or cashier’s check from your bank.

  • Confirm payment instructions with your title company in advance.

  • Send your wire at least one business day before closing.

The Key to Avoiding Delays: Communication and Preparation

The best way to ensure an on‑time closing is to:

  • Start early – Address potential issues as soon as possible.

  • Stay in communication – Keep your lender, title company, and real estate agent in the loop.

  • Triple‑check everything – Confirm funds, documents, and required signatures well before closing day.

✅ Final Tip: Work with experienced professionals who anticipate challenges before they become roadblocks. At Arizona Premier Title, our proactive approach helps keep your transaction moving forward — so closing day stays on track.