What Issues Can Make a Home Transaction Fall Through?

 Posted on July 22, 2025 in Estate Planning

Buying or selling a home can feel like chasing a dream. The excitement of finding the perfect property can quickly turn into anxiety when a last-minute appraisal shortfall or hidden title defect arises. Even the most thorough contracts cannot foresee every hiccup, whether it is unexpected inspection results or lender delays that threaten your closing date.

When a transaction stalls, homebuyers and sellers can face high costs, lost opportunities, and strained relationships. A DuPage County real estate lawyer can help you navigate these challenges, protect your interests, and keep your closing on track.

Are Contract Terms Clear?

Ambiguous or poorly drafted purchase agreements often lead to disputes over contingencies, closing costs, or possession dates. To avoid confusion:

• Include a "definitions" section that spells out key terms like "closing date," "loan contingency," and "inspection period"

• Use clear language for the delivery of documents and the transfer of the title

• Review the Illinois Residential Real Property Disclosure Act to verify that all required disclosures are defined and provided on time

Have All Material Facts Been Disclosed?

Under Illinois law, sellers must disclose known defects, such as structural damage, water seepage, or past pest infestations. The Residential Real Property Disclosure Act requires sellers to complete a detailed disclosure form, and failing to do so can lead to fraud claims or contract cancellation. Buyers should:

• Carefully review the seller’s disclosure statement

• Schedule a licensed home inspection and follow up on any red flags

• Reserve the right to terminate or renegotiate if undisclosed issues surface before closing

Is Financing or Closing Delayed?

Securing a mortgage approval and satisfying lender requirements can introduce unpredictable delays. When a lender asks for additional appraisals or paperwork at the last minute, the closing can be delayed, risking buyers’ earnest money or forcing sellers to push back their move-out plans.

To manage these risks, include reasonable extension clauses in the contract and maintain open communication with lenders and title companies. When you include a "time is of the essence" clause, build in extra days as a buffer to cover the lender’s underwriting process.

Are There Title Defects or Survey Issues?

Even if a title search appears clean, undisclosed liens or easements can emerge, threatening the buyer’s ownership rights. Survey discrepancies, like boundary issues or encroachments, can also derail closings.

To avoid these surprises, buyers should obtain a title commitment and a boundary survey early in the process. If any defects appear, the seller must clear liens or secure necessary easements before closing. Title insurance, governed by Illinois law and standard American Land Title Association forms, protects buyers against post-closing claims.

What Remedies Exist for Contract Breach?

If one party backs out without a valid contingency or fails to move out on time, the other party can pursue remedies under Illinois law. Specific performance, enforced by the Illinois Code of Civil Procedure, may compel the sale or purchase of the home when monetary damages are insufficient. Alternatively, the harmed party can recover actual damages for inspection fees, appraisal costs, and any difference if the home is resold at a lower price.

Contact a Cook County, IL Residential Real Estate Attorney

If your home transaction hits a roadblock, do not navigate it alone. Contact a DuPage County, IL real estate lawyer at Whitacre & Stefanczuk LTD by calling 773-622-6100. We treat our clients like family, and you can trust that we will maintain open communication throughout the process. We are here to help you clear title issues, interpret contract provisions, and assert your rights under Illinois law to get you across the finish line.