Preventing Closing Delays: What You Can (And Can’t) Do

Common Causes of Closing Delays

Closing delays rarely happen in isolation. Most stem from a handful of predictable patterns that repeat across transactions. When you understand these patterns and why they cause delays, you can spot potential issues and take action before they can derail a closing. 

Documentation Issues

Certain documents and information are required to close, and without them, the transaction can't move forward. Because of processing timelines, these requirements can't be rushed when they arrive late.

Missing documentation creates immediate roadblocks. When someone arrives at closing with an expired ID, the entire closing must be rescheduled, since there's no workaround for invalid identification. Similarly, seller payoff authorizations that arrive too late create cascading delays because lenders can't finalize closing documents without accurate payoff information, which means the entire lending package gets pushed back. 

Incomplete documentation stops progress until gaps are filled. HOA information that's missing critical details, such as special assessments or pending violations, leaves the title company unable to complete its review and issue final title policies. The transaction sits in limbo until complete information arrives, and there's no way to expedite HOA responses that operate on their own timelines

Documents with deficiencies require correction or replacement. A power of attorney might exist but lack the specific language needed to grant signing authority for real estate transactions, making it legally insufficient for closing. Trust documents might be missing required amendments or notarized signatures. Unfortunately, these aren't simple oversights that can be overlooked. Instead, they're legal requirements that must be satisfied before any closing can proceed.

Prevention starts during contract review. Talk to your clients about their specific situation. Will everyone on title be at closing? Is the loan government-backed? Do you have an HOA? Is the sale part of an estate or a divorce? These questions reveal potential documentation challenges early.

When you identify concerns or red flags, communicate them to your title company immediately. Early awareness gives everyone time to gather what's needed and review documents for potential issues before they become closing-day problems.

Communication Gaps

Sometimes, requests for information from the title company to agents or clients go unanswered. Emails get lost, requests arrive during a busy period, or someone simply forgets to respond. The result is a gap in the information necessary to finalize the transaction.

The most common scenarios involve buyers or sellers who don’t respond to title company requests, late notification that certain parties won’t attend closing, and changes to contract terms that never reach the title company. Repair requests, escrow holdbacks, and price adjustments will all affect closing. 

However, even experienced agents can forget to complete tasks or communicate updates during busy seasons, and innocent mistakes, such as assuming the title company received information that was only shared verbally, create gaps that can delay the process.

One way you can minimize the risk of communication gaps is to bridge those gaps between the title company and your clients. Be the squeaky wheel when needed, and follow up with your clients to confirm they have received and understood requests. Provide support for clients who may not know what to do. For example, your clients may need you to clarify required steps or hold their hand to submit payoff authorizations. Lack of client action often stems from forgetfulness or confusion about what’s needed.

You should also work to minimize your own communication gaps. During busy seasons, use systems to track what information you've shared with your title company. Confirm receipt of important updates rather than assuming they were received. When contract terms change, even minor adjustments, notify the title company immediately and follow up to ensure the information reaches the right person. Most importantly, stay in contact with your escrow officer and title company throughout the transaction, not just in the 24 hours before closing. 

Issues with Wire Transfers

Wire issues don’t always stem from procrastination. Many buyers don’t understand what is required to transfer large sums of money. The prevalence of easy transfers within bank accounts, online bill payment options, and instant payments through PayPal or Venmo can create an expectation that all money transfers work the same way. Many buyers believe they can simply click a few buttons the morning of closing and be fine.

However, wire transfers can be complicated, and the requirements vary among institutions. Banks frequently require in-person visits for wires above certain amounts. Investment accounts need forms and additional processing time. Last-minute changes to the transaction can affect final numbers and further complicate the preparation of funds.

But when funds don’t arrive on time, the result is a dry closing. Sellers don’t receive their money, and many choose not to turn over access to the home until they do. 

To prevent delays from issues with wire transfers, ask about wire plans early. How will your buyer pay their portion at closing? Help them contact their financial institution well in advance to understand their specific requirements and timelines. 

Complex Transactions

If you’re working with a complex transaction, such as one that involves death, divorce, or a bank-owned property, there is always potential for cascades of delays. These delays are often outside the title company’s control. But required steps can’t be skipped, and resolution can’t be rushed.

For example, an estate sale might need a death certificate, which leads to probate proceedings, which require court approval before the property can be sold. A divorce situation might involve waiting for a judge to sign off on the settlement agreement. Bank-owned properties often have layers of corporate authorization requirements.

Clear communication with your title company at the outset prevents unnecessary delays, but some delays may be inevitable. The sooner your title company knows about potential complications, the sooner they can outline what will be needed and set realistic timelines.

In these complex transactions, it’s equally important that you communicate with your clients about the potential for delays. Set clear expectations about timelines and prepare contingency plans if needed to minimize frustration.

Delays Outside Your Control

Some delays have nothing to do with preparation, communication, or timing. They're simply part of processes that operate on their own schedules.

Lender-Controlled Timelines

When it's a financed transaction, the lender's requirements and process dictate much of the timeline. Underwriting timelines, conditions, and approval processes can't be rushed by the title company or by you.

Lender conditions must be satisfied before clear-to-close. Additional documentation requests can arise at any point in the process. Final approval timing varies by lender and loan type. Some move quickly, while others take longer by design.

Institutional Requirements and Processing Times

Certain processes take the time they take. No shortcuts exist for government-backed loan payoffs with mandatory waiting periods. Court processes for estates and divorces follow legal timelines set by the judicial system. Bankruptcy and foreclosure situations require specialized handling with specific procedures. Some liens need documentation that simply takes time to obtain.

These aren't inefficiencies or problems to solve, but rather built-in requirements that exist for legal or regulatory reasons.

Title Issues from Previous Transactions

Sometimes, the title search and examination process reveals issues from previous transactions. For example, a deed might have an incorrect legal description. A previous mortgage might show as unpaid due to recording errors. Boundary disputes from years ago might surface unexpectedly.

Any title issues that are revealed must be corrected before closing can proceed. You can help by responding promptly to any title company requests for assistance. What you cannot (and should not) do is pressure the title company to close with unresolved title issues. 

Some title problems require legal resolutions, such as affidavits, quiet title actions, or corrective deeds. These solutions have their own timelines. Pushing harder doesn't make them resolve faster. The title company's job is to ensure clean title transfers to the buyer, and that responsibility can't be compromised to meet a deadline.

Setting Realistic Expectations With Your Clients

Managing client expectations from the beginning prevents frustration when complications arise. Don't make promises about closing dates unless they're approved by both the lender and the title company. Your enthusiasm about getting a deal done quickly can create unrealistic expectations that lead to disappointment.

Communicate clear expectations from the start. Even cash closings can't close immediately—processing and due diligence take time. Title searches need to be completed, documents need to be prepared and reviewed, and parties need to be coordinated.

Unexpected issues can arise despite the best preparation. A previously unknown heir might emerge during the title examination period, requiring additional documentation before the sale can proceed. A seller's payoff might come back higher than anticipated. These surprises happen even when everyone does everything right. 

Most transactions close on time or even early, but it’s still important to be flexible. Build buffer time into your clients' expectations. When closings happen smoothly and ahead of schedule, everyone celebrates. When delays occur, prepared clients handle them with far less stress.

Tips for Managing Closing Delays

Delays are frustrating, but how you handle them makes a difference. Your response sets the tone for your clients and can either ease the stress or amplify it. Focus on moving the transaction forward rather than dwelling on setbacks.

1. Maintain active, clear communication with all parties. Keep your clients informed about what's happening and why. Update the lender on any issues that might affect their timeline. Stay in touch with the title company about progress and next steps.
2. Set realistic expectations based on the current situation. If a payoff authorization will take five business days to process, don't tell your client it might happen in two. If a title issue requires a corrective deed, explain that legal documents take time to prepare and record. Honesty about timelines prevents repeated disappointment.
3. Trust that the title company is working as quickly as possible. They want the closing to happen just as much as you do. Constant pressure doesn't speed up processes that have built-in timelines. What it does do is create stress and strain relationships.
4. Adopt a solution-oriented mindset. When problems arise, focus your energy on what can be done rather than what went wrong. Can you help track down a previous owner for a signature? Can you facilitate communication between parties who aren't responding? Can you help your client understand what documentation they need to provide?
5. Focus on problem-solving, not blame. Pointing fingers doesn't move transactions forward. Whether the delay stems from the lender, the title company, or the parties involved, the goal remains the same: getting to the closing table. Your role is to help facilitate that outcome, not to assign fault for obstacles along the way.

Delays are sometimes unavoidable, but preparation minimizes them. Early documentation review, clear communication, and realistic timeline discussions prevent many common roadblocks before they develop.

Your partnership with your title company serves everyone involved in the transaction. You bring knowledge of your clients and transaction details, while the title company brings expertise in navigating complex requirements. This collaborative approach leads to smoother transactions with fewer delays for your clients.