May 28, 2010

Tip 23-2010: Tax Credit Deadline

Great news—large numbers of closings are taking place in June. Realtors and lenders have worked the tax credit hard, and a lot of people are able to benefit. I’ve even noticed most people are trying to avoid the final three days of June to close. This is especially important considering the consequences if the closings are not completed before July.

With unusually high volume comes scheduling issues. Normally all the parties (lenders, realtors and attorneys) try to close on the scheduled date because the buyers and sellers may have made plans relying on the date. There will always be certain closings that are naturally delayed. But even assuming such normal delays, I recommend everyone be prepared for delays, especially around the middle of June.

Accordingly, it may be a good idea to inform the parties (especially the buyer and seller expecting to close between June 14-18, 2010) that there could be a short delay, but the closing will still occur within plenty of time for the tax credit. If the closing must occur on a specific date (movers schedule, domino closings, etc.) then please let the settlement attorney and lender know. Communicating early with everyone about a potential short delay will hopefully avoid any problems later on. Let’s all (realtors, lenders and attorneys) work together to minimize any problems during these exciting times!

Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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