At Clear Title, we help people make one of the biggest financial decisions in their life: purchasing a home. The closing process can be complex and challenging, so we have developed this Homebuying Horror Story Series to bring to light some of the situations that can arise during this process. Last month we covered closing at the beginning or ending of the month; this month we are focusing on what could happen if you make a big purchase during escrow.

Fictional Situation: Smith Family

• Jake and Alyssa Smith
• Married with 4 children under age 10
• 2 dogs
• Purchasing a larger home

With the birth of their fourth child, the Smith family realized they had outgrown their current home. With the challenges of a newborn consuming much of their time, they were anxious to find a larger home and get settled quickly.

To their amazement, they found the (seemingly) perfect home in a neighborhood with a respected school nearby. The title closing process was well underway and they were deep in the process of selling their own home. It was a lot to take on, but the Smiths felt it would all be worth the hard work. The closing date was set for 30 days out and the Smiths were 100% prepared for the move.

As part of the home buying process, they hired a certified home inspector to examine the home from top to bottom. Unfortunately, the inspection revealed that the home was unknowingly infested with termites: destructive household pests that were already causing thousands of dollars of damage to the structural system of the home. Knowing they could not move into a home with serious termite damage, the Smiths asked the seller to correct the problem. They took time to research ways the wood damage could be repaired in order to bring the home back up-to-code.

The seller’s first reaction was that the inspection had to be wrong. This resulted in the seller hiring their own inspector to do a second look at the home. This added 2 weeks to the timeframe of the sale and threatened to push the closing date.

When the second inspection revealed the same result, the Smiths had to negotiate back and forth with the seller to have the damage repaired. They discussed lowering the overall price of the home as well. Finally, the buyers and sellers made an agreement to have the damage repaired before the closing would be finalized.

Not surprisingly, the 30-day closing date came and went. The Smiths ultimately had to wait 4 months to move into their home. Because they had sold their current home, they were forced to move in with relatives until their house sale was finalized – crying infant, dogs and all.

While this type of stressful situation can’t be completely prevented, it does help to have experts on your side to help you weather the storm. Clear Title is a title company in Pensacola, Florida, led by Board Certified Real Estate Attorney Stephen R. Moorhead. For over 30 years he has honed his skills in real estate closing and built a team of experienced, trustworthy experts to keep the horror out of home buying. When you trust Clear Title, you’re getting 100s of years of combined experience in your home buying court.

To schedule a meeting with our experts and explore our Pensacola title services, contact us today at (850) 202-8518 or visit ClearTitlenwfl.com.