How do I handle closing delays?
Closing delays can come from financing, appraisal, title, repairs, or scheduling issues, so the first step is to identify the cause and timeline. Work with your agent to negotiate an extension addendum, adjust possession dates if needed, and keep all parties updated in writing so the contract doesn’t accidentally default.
Can a seller back out of a signed contract?
Backing out after signing is only possible in limited situations, such as when a buyer misses deadlines, fails to meet contingencies, or you have a specific cancellation right in the contract. Walking away without a valid contractual reason can expose you to legal claims, specific performance demands, and liability for the buyer’s costs.
What happens at the closing table?
At closing, the buyer signs loan documents, you sign documents transferring ownership, and funds are exchanged through the title or escrow company. The settlement agent reviews the closing disclosure or settlement statement, confirms wiring instructions, and ensures all conditions are met before recording the deed. Once everything is signed and recorded, the buyer receives keys […]
What is a liquidated damages clause?
A liquidated damages clause sets an agreed amount or cap—often the earnest money—that the seller can keep if the buyer breaches the contract without legal excuse. It’s designed to avoid fights over actual damages by predefining the seller’s remedy, subject to limits under state law. Not all contracts use this, so reviewing this section with […]
When can a seller keep the buyer’s earnest money?
A seller may keep earnest money if the buyer breaches the contract without a valid contingency or misses key deadlines without agreed extensions. If the buyer simply changes their mind outside contingency periods, the contract often allows the seller to claim the deposit as damages, subject to local law and any liquidated damages clause. Disputes […]
What is earnest money and how does it work?
Earnest money is a deposit buyers make with their offer to show they are serious about purchasing the home. It’s usually held in an escrow account and later applied to the buyer’s down payment or closing costs if the sale closes. If the buyer properly cancels under a contingency, they typically get it back; if […]
What are common contract contingencies I should know?
Common real estate contingencies include inspection, financing, appraisal, sale-of-buyer’s-home, and sometimes title or HOA review. These clauses give buyers defined timeframes to investigate the property and their loan; if contingencies aren’t satisfied, they can usually cancel and keep their earnest money. As a seller, understanding each contingency helps you judge offer strength and timelines.
What is a HUD-1 or closing disclosure?
A HUD-1 or Closing Disclosure is the detailed settlement statement that shows every charge, credit, and payout for both buyer and seller at closing. Today, most financed residential deals use the 5-page Closing Disclosure, while cash, HELOC, or certain non-TRID loans still use a HUD-1–style settlement statement.
What is an appraisal contingency from the seller’s perspective?
An appraisal contingency allows the buyer to renegotiate or cancel if the home appraises for less than the purchase price. From a seller’s perspective, this adds risk that the price may need to be lowered or the buyer may ask you to cover gaps if the appraiser comes in low. Strong buyers sometimes waive or […]
How does selling on Zillow Offers work?
Zillow Offers was an iBuyer program where Zillow made cash offers, handled repairs, and then resold the home, but the company has since exited that line of business and no longer buys homes directly. Today, Zillow mainly connects sellers with agents and marketing tools rather than acting as a direct buyer.?