settled

Contract Settlement Issues: Financing and Appraisals are Major Issues

In reporting on their last contract that went into settlement or was terminated over the period July-September 2015, REALTORS® reported that 64 percent of contracts were settled on time, 30 percent had delayed settlement, and six percent were terminated, according to the September 2015 REALTORS® Confidence Index Survey Report.

settled

Of all contracts settled/terminated, financing, appraisal, and home inspection issues were the major problems: 18 percent had financing issues, 11 percent had appraisal issues, and 11 percent had home inspection issues.

Among contracts that had a delayed settlement (30 percent), 42 percent of contracts that were delayed had financing issues.

Among contracts that were terminated (six percent), home inspection and financing issues were the major causes, with 28 percent of contracts experiencing both these issues.

REALTORS® have expressed concern about the possible delays in closing arising from the new TILA and RESPA integrated disclosure regulations that took effect on October 3, 2015. About 92 percent of respondents reported taking measures to be ready for the implementation of the new disclosure regulations (that took effect on October 3, 2015) such as attending seminars, coordinating with lenders, advising clients, and revising model contracts in line with the new TILA-RESPA guidelines.

problemcontractsencountered