Common Issues in Pennsylvania Real Estate Transactions

Buying or selling real estate in Pennsylvania is an exciting but intricate process. Whether you are purchasing your first home, selling commercial property, or investing in rental units, understanding the common pitfalls in Pennsylvania real estate transactions can help you avoid costly mistakes.

From title defects to financing delays, Pennsylvania real estate deals can be complicated by legal, financial, and procedural hurdles. This guide explores some of the most common issues and provides strategies for overcoming them.

1. Title Issues and Property Liens

One of the most significant obstacles in a real estate transaction is a defective title. Before closing on a property, a title search must be conducted to ensure the property is free from legal encumbrances.

Common title issues include:

• Unpaid property taxes or outstanding mortgages.

• Liens from contractors or creditors.

• Errors in public records (misspelled names, incorrect legal descriptions).

• Undisclosed heirs who may have a claim to the property.

• Fraudulent or forged deeds in the chain of ownership.

How to Avoid It: ✔ Conduct a thorough title search before closing. ✔ Obtain title insurance to protect against unexpected claims. ✔ Work with a real estate attorney to clear up title defects before finalizing the purchase.

2. Financing and Mortgage Challenges

Securing financing is a critical part of a real estate transaction. However, unexpected loan denials or delays can jeopardize closing timelines.

Common financing issues include:

• Low credit scores preventing mortgage approval.

• Insufficient funds for a down payment or closing costs.

• Issues with the property not meeting lender requirements.

• Unresolved debts or financial discrepancies discovered during underwriting.

How to Avoid It: ✔ Get pre-approved for a mortgage before making an offer. ✔ Maintain stable employment and credit leading up to closing. ✔ Ensure the property complies with lender inspection requirements. ✔ Work with a mortgage professional to resolve financing roadblocks.

3. Home Inspection Surprises

A home inspection can reveal costly structural or safety issues that could derail a deal. Buyers may back out or renegotiate based on the results of the inspection.

Common inspection issues include:

• Roof damage or leaks.

• Foundation cracks or structural instability.

• Plumbing or electrical system failures.

• Mold, radon, or asbestos concerns.

• Termite infestations or pest damage.

How to Avoid It: ✔ Always hire a certified home inspector. ✔ Review the seller’s disclosure statement for known issues. ✔ Negotiate repairs or credits before finalizing the deal. ✔ Consider a home warranty for added protection.

4. Property Boundary and Zoning Disputes

Boundary lines, easements, and zoning restrictions can cause unexpected legal challenges. Buyers should be aware of land use limitations before purchasing a property.

Common boundary and zoning issues include:

• Unclear property lines leading to disputes with neighbors.

• Easements allowing third-party access to part of the property.

• Zoning restrictions preventing intended use (e.g., converting a home to a business space).

• Illegal additions or modifications made without permits.

How to Avoid It: ✔ Obtain a property survey before closing. ✔ Check local zoning laws to ensure compliance. ✔ Request a title report that includes easements and restrictions. ✔ Work with a real estate attorney if disputes arise.

5. Delays in the Closing Process

Many real estate transactions experience unexpected delays that push back the closing date. These delays can be frustrating and may even result in the deal falling through.

Common causes of closing delays include:

• Loan processing issues or final approval delays.

• Last-minute title defects requiring resolution.

• Discrepancies in closing cost calculations.

• Buyer or seller failing to meet contract contingencies.

• Missing or incomplete documentation.

How to Avoid It: ✔ Communicate regularly with all parties involved (lenders, agents, attorneys). ✔ Stay organized and submit required documents promptly. ✔ Ensure all contract contingencies are met before the deadline. ✔ Consider using an escrow service to handle financial transactions smoothly.

6. Misrepresentation and Legal Disputes

Real estate transactions should be honest and transparent. However, some deals run into legal issues due to misrepresentation or contract disputes.

Common legal issues include:

• Failure to disclose known defects.

• Breach of contract by either the buyer or seller.

• Undisclosed encroachments or property disputes.

• Fraudulent misrepresentation by a seller or agent.

How to Avoid It: ✔ Ensure all disclosures are complete and accurate. ✔ Review all contract terms carefully before signing. ✔ Seek legal advice if you suspect misrepresentation. ✔ Work with a real estate attorney for contract review and dispute resolution.

When to Seek Legal Assistance

Given the complexity of real estate transactions, legal guidance can be invaluable. You should consult a real estate attorney if:

• You encounter title defects or ownership disputes.

• There are issues with boundary lines or zoning restrictions.

• The seller fails to disclose property defects.

• You need help reviewing or negotiating a real estate contract.

• A contract dispute or lawsuit arises before or after closing.

Conclusion: Protect Your Real Estate Investment

Navigating Pennsylvania real estate transactions can be challenging, but being aware of potential issues and seeking legal assistance when needed can help ensure a smooth process.

At Ament Law Group, we provide expert legal support for buyers, sellers, and investors facing complex real estate issues. Whether you need contract review, title resolution, or legal representation, we are here to help.

Call Ament Law Group now at (724) 733-3500 or visit www.ament.law for legal guidance on Pennsylvania real estate transactions.