More than one-third of home deals miss closing date

The National Association of Realtors reported that 64 percent of contracts were settled on time, 30 percent had delayed settlement and six percent were terminated, according to the trade group’s the Confidence Index Report covering July through September.

Financing, appraisal, and home inspection issues were the major problems of all contracts delayed or terminated. Approximately 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.

NAR members 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 such as attending seminars, coordinating with lenders, advising clients, and revising model contracts in line with the new TILA-RESPA guidelines.