Delayed Closing ~ Who Pays?

Real Estate Broker/Owner with Beam & Branch Realty TREC #547752



I am sure that many of you have encountered the dreaded delayed closing!  It has become more of a norm these days and I am finding that the issues that are causing this are many times from someone dropping the ball in some way!  So when this occurs, who pays?


The buyer can be out financially as they may be in a temporary living situation.  Finding out that their closing may be delayed can cause them to have to make arrangements to extend a lease, pay additional days of rent or have to incur another interim move.


The seller may be in the same situation as the buyer with their new home.  The old domino effect is now in play.  Everyone along the chain is affected.


I have a first-time home buyer in this situation currently with a newly constructed home.  He was originally supposed to move in mid-October and the date is now set for December 30th!  Fortunately, his apartment company has agreed to extend his lease again and again but the rate has increased for him with each extension.


Going to bat for this young man, the new home company has agreed to increase the amount they were putting in towards his closing costs.  Additionally they have agreed to pay for the extra expense of paying additional costs of having the inspector have to come out again.  This doesn't always happen.


When the Lender/Underwriter delays however, I have yet to see anyone being compensated for their out of pocket expenses due to their delay.  Many times, the deal is just dead after delays such as this.


So who pays for the delay?  Sadly what I have seen is that the consumer is the one who ultimately loses out when there are closing delays.  It is an unfortunate event!


Having a real estate agent represent you is so important.  Being able to intervene on your clients behalf when a delay happens can help a lot.  We may not be able to prevent the delay but you can bet that we are going to do our dead level best to get to a solution to assist the client.


Make sure that you are fully represented in all real estate transaction by a licensed real estate agent!  We are your advocates and will be with you throughout the process.  Delays do happen so being prepared just in case is not a bad thing!


Posted by

Beam & Branch Realty       

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®, 

        Granbury, Texas 

 936-203-0279 Direct

Selling Hood County and surrounding areas! 



 John Maxwell

Farm & Ranch


          ABR                 Institute for Luxury Marketing                Institute for Luxury Home Marketing


Graduate Realtor InstituteC2EX


Copyright 2020 Paula McDonald


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Real Estate General Information
Bartender, Make it a Double
Old Farts Club
delays in closing

Spam prevention
Show All Comments
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

David Shamansky I have to agree with you that the feds have seriously messed up our closings!

Dec 16, 2014 06:46 AM #5
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Fred Griffin yep the gov. has caused our already difficult system to be even further messed up!

Dec 16, 2014 06:47 AM #6
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Nicole Doty - Gilbert Real Estate Expert that is great that the Lender's stepped up! That is the right thing to do if they were the ones causing the delay.

Dec 16, 2014 06:47 AM #7
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Susan Haughton very good that the Title Company did step up.  Such a tough situation for all when this happens.

Dec 16, 2014 06:48 AM #8
Jenna Dixon
DRA Homes | Cobb County Real Estate - Marietta, GA
Empowers You With a Better Real Estate Experience

I think with all of the new regulations in place now and more coming down the pike we are going to have to start setting expectations for buyers and sellers to account for more delays than ever before.  Not sure how we are going to address this going forward.

Dec 16, 2014 07:13 AM #9
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Oh yes, I see this all the time, too and it is unfortunate when it costs either party money.  I currently have a customer renting for longer (and it costs them extra money) and they've had to reschedule movers and pay for more storage time.  I've also seen jobs on my end canceled as people sometimes just run out of time. It can be a domino effect.  It's so important to have an experienced realtor on your sides as sometimes they can reduce the delays (just from good follow up) and second, sometimes help negotiate compensation.

Dec 16, 2014 07:47 AM #10
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Delays are more commonplace with additional checks in place, but I put a lot of it not only on regulators, but also on consumers - those people that got a mortgage knowing they were about to go delinquent on all of their accounts, or the ones who didn't tell anyone they lost their job a few days before settlement?  They're the reason for last minute verifications of employment, or last minute checks for credit inquiries, and a lot of the last minute, 11th hour requests for documents that lead to delays.  I feel really bad for qualfied borrowers that are good people just trying to buy a house - but there are still a lot of scam artists and people out there trying to commit fraud - it's largely on them that the process is so difficult for everyone these days.

Dec 16, 2014 10:59 AM #11
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Paula - Very true, delayed closing can cause financial issues and inconvenience.

Dec 16, 2014 11:55 AM #12
Winston Heverly
Winston Realty, Inc. - Atlantis, FL

Paula,  a nice read with some great pointed highlights to help in our businesses.

Dec 16, 2014 12:40 PM #13
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Paula McDonald ~ it is very refreshing to hear lenders are TCB, because delays are bad for all parties involved

Dec 16, 2014 02:30 PM #14
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

I had ran into this several times over the last few months. In my cases it was the agent who was at fault.  I cured that issue however last Monday.  Hope the agent does well at the new agency.....

Dec 16, 2014 07:55 PM #15
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Paula, I like reading that this builder has in fact taken some responsibility for the delay.  As you write, it can be really frustrating when we get these delays from lenders.  They seem to be the only party that is not held accountable in real estate transactions.

Dec 16, 2014 08:43 PM #16
Sharon Paxson
Compass - Newport Beach, CA
Newport Beach Real Estate

Hi Paula McDonald - nice post and delayed closings do create a domino effect. And sometimes the seller can charge a per diem rate for each day it doesn't close (if buyer is late).

Dec 17, 2014 01:08 AM #17
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Paula, Good advice as all buyers and sellers need a Good Realtor to reprsent them. many times new home buyers think they are getting a better deal without a Realtor. Thanks for the well written post. 

Dec 17, 2014 07:02 AM #18
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Paula,  My answer is everyone pays.  It causes bad ju-ju all the way around. It takes time and effort for those, like you, who go to bat for their clients.  I agree that delays happen one some one dropped the ball.

Dec 17, 2014 09:01 AM #19
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist


What the?

Dec 17, 2014 09:01 AM #20
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

I have never seen a lawyer penalized for delay of closing - perhaps because no one knows it was their issues ........    I just had such a deal

Dec 17, 2014 08:31 PM #21
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

These inconvenient and costly delays are more common than may home buyers and home sellers may realize. All need to be advised to have back up plans in the event of a delay. If possible this should be addressed in the contract.

Dec 18, 2014 06:46 AM #22
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I think when there is a delay most parties lose. The seller has made preparations to move and is depending on his money. The buyer needs a home. Rarely does the lender step up to make it right financially.

Dec 21, 2014 10:02 AM #23
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Paula, I think all too often those who didn't cause the problem end up taking it on the chin. When the lender is at fault they sure don't want to admit it or take financial responsibility. 

Dec 29, 2014 06:34 AM #24
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Paula McDonald ~ GRI

Granbury, TX 936-203-0279
Let's Find You a Home!
Spam prevention

Additional Information