By KC Costello and Kristen Peterson, Cornerstone Title, Portsmouth, New Hampshire
When your seller desires a quick closing and your buyer is on board, the pressure to move fast is understandable as you’re striving to meet everyone’s needs. You contact your title company partners to confirm if an expedited closing is feasible and are told it can happen in 8 business days. It seems perfect — until it isn’t.
While quick closings may seem appealing, rushing the process can lead to costly mistakes that could have been avoided with proper time management and thorough due diligence. Properly reviewing and completing all title-related tasks ensures that your buyer’s financial interests are protected, and helps avoid potential legal and financial complications down the road.
Why Can’t My Cash Deal Close in Three Days?
Even in cash transactions, title companies must take the time to conduct a thorough review. Title companies issue title insurance, which means they must ensure they have sufficient time to uncover and resolve any potential issues. Hidden tax liens, judgments, or ownership disputes could surface later, resulting in expensive legal battles or unexpected debt. For this reason, ample time is necessary to ensure all issues are fully addressed and to avoid complications. Additionally, when a seller holds title in a trust, selling from or is a probate estate, careful examination by a title attorney is required to ensure the proper transfer of ownership.
The Importance of Details
Even when time is short, Realtors must help their clients understand all closing costs. It’s crucial to review and explain these fees in detail as soon as estimates are available to avoid surprises and confusion at the closing table.
What Can’t Be Rushed
Several aspects of the closing process cannot be expedited without risking errors. Tasks like obtaining mortgage payoffs, verifying utility bill balances, and acquiring condominium certificates take time. Although some condominium-related documents can be rushed, they often come with hefty rush fees. If these details are not thoroughly verified, buyers could inherit unexpected debts or face issues that complicate the closing.
For buyers using lender financing, time-related restrictions become even more pronounced. Federal TRID (TILA-RESPA Integrated Disclosure) rules impose mandatory waiting periods that prevent ultra-fast closings. While the closing may seem imminent, these rules cannot be waived, and adherence is critical for avoiding issues down the line.
When ‘No’ Means ‘No’ for a Reason
Imposing unrealistic deadlines can force title companies to make rushed decisions, leading to costly errors. A reputable title company understands its limits and will not jeopardize the quality of its work in the name of speed. As a Realtor, your job is to ensure that your client’s best interests are always the priority. A trusted title company will work with you to ensure the transaction proceeds smoothly without sacrificing quality or accuracy.
In real estate, good things come to those who wait — and careful planning is essential for a successful closing. While speed may seem tempting, rushing the process can lead to expensive, avoidable mistakes.
KC Costello and Kristen Peterson are business developers and closing agents in New Hampshire and Maine with Cornerstone Title, LLC, Portsmouth, NH.
