types of TURBULENCE we could run into

The Lender

• Decides they don’t like the property. 
• Requires a last minute second appraisal. 
• Loses a form or misplaces entire file.
• Does not simultaneously ask for all needed information from the buyer; they ask for information in bits and pieces.
• Pulls a "bait & switch" on the buyer.
• The market raises rates.
• Buyer does not qualify because of a late addition of information.
• The buyer does not like fine print in the loan documents that are received before the scheduled closing.

The Seller

• Loses motivation.
• Misrepresents information about the home and neighbourhood.
• Unknown defects that are subsequently discovered.
• Home inspection reveals average amount of small defects that the seller is unwilling to repair.
• Did not complete the repairs agreed to in the contract.
• Does not appear for closing and/or won’t sign papers.
• Delays the projected move-out date.
• Still not moved out at Possession time.

The Buyer

• Buyer’s family members or friends do not like the house.
• Wants to re-negotiate based on defects found in inspections.
• Finds another property that is a better deal.
• Brings a lawyer into the picture.
• Did not tell the truth to their realtor.
• Submits incorrect information to lender.
• Does not execute the paperwork in a timely manner.
• Loses job, job change, illness, divorce, or other financial setbacks.
• Loan program changes with higher rates and fees.
• Source of down payment changes.
• Finds out about additional debt after loan application.
• Comes up late with the money at closing.

The Realtor(s)

• Has no client control over buyer or seller.
• Delays access to property for inspection and appraisals.
• Does not get completed paperwork to the lender in time.
• Does not do sufficient homework on their client or the property and wastes everyone’s time.
• Unfamiliar with their client’s financial position – do they have enough equity to sell, etc.

The Property

• Home was misrepresented as to size and condition.
• Home is destroyed prior to closing.
• Home is uninsurable for homeowner’s insurance.
• Unique home and comparable properties for appraisal difficult to find.

The Legal Conveyancer

• Fails to follow-up on unsigned or unreturned documents.
• Lets principals leave town without getting all necessary signatures.
• Loses or incorrectly prepares paperwork.
• Poor co-operation between the legal firms.

The Appraiser

• Not local and misunderstands the market.
• Delays (too busy, etc.).
• Makes important mistakes on appraisal or brings in value too low.
• Not on lender’s “approved list”.
• Lender requires a second or “review” appraisal.

The Inspection Company

• Too picky with conditions and "scares" the buyer.
• Inspection reports alarm buyer and sale is cancelled.