This spring, we are sharing common questions that we receive from clients regarding real estate transactions. From transaction timelines to deposits, be sure to read our Q&A series on real estate matters. Find our first installment below:
Q: How long does it take to normally close on the house?
A: Essentially, the length of time to complete a transaction varies from transaction to transaction. Some transactions can be wrapped up rather quickly, but it really depends on the contingencies that are in place within the contract. For example, a cash transaction with limited inspections typically closes much faster than a transaction that requires a mortgage and/or might have prolonged inspections.
The typical length of time for a transaction that has a mortgage contingency, which means that the buyers are given a certain amount of time, is usually 30 day. To obtain a mortgage that has a full inspection contingency wherein the buyers will seek to obtain structural, mechanical, environmental, wood destroying insects, radon and oil tank tests is usually 60 days.
That said however, a cash transaction with limited inspections can be accomplished much faster than that. Even if a buyer who is doing a full range of inspections, can close within 20 to 30 days if it is a cash transaction.
Lastly, it should be mentioned that some transactions naturally take a long time because it may take longer to get approved for the mortgage loan, inspections may get complicated or there are some title issues that have to be resolved. Just because it takes a long time to complete a transaction, does not mean that it is not going to eventually close. A skillful and communicative attorney will not only be able to get the job done, but will be able to guide you through the process so that you’re not anxious about any delays that may occur during the transaction.
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