Buying or selling a home is an exciting milestone, but sometimes real life throws in a surprise or two along the way. If you’ve ever wondered what happens if something goes wrong before closing a house sale, you’re not alone. From unexpected damage and financing issues to title problems or sudden life changes, even firm deals can face bumps before the keys change hands. The good news is that every situation has a process, and the right team can help you get through it calmly and confidently.
If an issue comes up while conditions are still in place, like during financing or inspection, it’s usually just a disappointment. Once the deal is firm, though, the agreement is binding and everyone has to work together to find a solution.
Here’s what that can look like, based on a few real experiences.
🔥 When the Property Is Damaged (Fire, Flood, or Burst Pipes)
One of our listings sat vacant while waiting for closing when a pipe burst and no one noticed for days. By the time it was discovered, the damage was substantial. Thankfully, the buyer’s agent arranged a final walk-through and spotted the mess before closing. Our seller acted quickly, got the insurance company involved, and started repairs right away. Both parties agreed to delay closing until everything was fixed, and it all worked out in the end.
In another case, a vacant property was robbed before closing. Thieves had taken copper from inside the walls. Once again, buyer and seller cooperated, insurance covered the loss, and everyone stayed focused on getting to the finish line together.
When a home is sold, the seller is responsible for maintaining it in the same condition it was in when the offer was accepted. If something happens, insurance and good communication are key to keeping the deal on track.
⚰️ If the Seller Passes Away Before Closing
It’s rare, but it can happen. When a seller dies before closing, their estate steps in through the executor to finalize the sale. That process can take time, especially if probate hasn’t been completed.
If the delay leaves the buyer without a place to go, they may have some options. Depending on the agreement and legal advice, they might be able to claim expenses or seek temporary accommodation at the seller’s expense. Most of the time, everyone involved works together to find a fair solution while the legal process catches up.
💔 If the Buyer Passes Away Before Closing
When a buyer passes away, their estate becomes responsible for the agreement. The challenge is that most lenders will not advance funds to an estate. This is why anyone who has worked with us knows we always recommend getting a simple term life insurance policy in the amount of the mortgage needed to close. It is usually very affordable, and unlike mortgage insurance, the policy value does not shrink as your mortgage balance goes down.
🧾 When Title Issues Appear Late in the Game
Sometimes lawyers uncover surprises during the title search, like unpaid liens, shared driveway agreements, or ownership discrepancies.
One of our clients had a fairly common name, and during the title search, the lawyer found a lien that had been meant for someone else with the same name who was behind on child support. The problem was that our seller was in his seventies, had been married to the same wife for fifty years, and lived next door to their daughter, who clearly had not been deprived of her dad’s support! We had to make sure that lien was removed before the sale could close. That time it was resolved easily, but it shows that truth can be stranger than fiction.
These issues have to be cleared before closing, and title insurance can offer protection for future claims. Delays can happen, but deals rarely fall apart entirely because of this.
💸 When Financing Falls Apart After the Deal Is Firm
If a buyer’s lender changes its mind at the last minute, perhaps because of a job loss or a credit change, the buyer is still legally bound by the contract. Sometimes the closing can be extended while they secure new financing. If not, the seller may have the right to keep the deposit and re-list the property.
Working with a mortgage broker can make all the difference here. A good broker keeps in close contact throughout the process, understands your personal and work situation, and can help you anticipate any changes that might affect your approval. If a job change is likely, your broker can steer you toward lenders who honour their mortgage commitments regardless of minor changes, or even help you set up a contingency plan in advance instead of scrambling at the last minute.
It’s also very important not to take on any new debt before closing. That means no new car leases, no new credit cards, and no furniture financing. Keep your financial obligations exactly as they were when you were approved so you don’t risk losing the loan you were promised.
🏠 When the Appraisal Comes In Low
If an appraisal doesn’t match the agreed purchase price, lenders may only fund based on the lower appraised value. The buyer might need to increase their down payment, renegotiate the price, or work with their lender to make up the difference. When the deal is still conditional, this is often the end of it, which is why we always try to get the appraisal in before removing the financing condition. But once it’s firm, it becomes a team effort to bridge the gap.
☕ The Bottom Line
Even when surprises happen, most real estate deals can be worked out with patience and the right support. Whether you’re buying or selling, having an experienced team in your corner makes all the difference. We’re here to support you through every step, answer questions, and make sure your next move stays on track from offer to closing day.
