December 15, 2025 | 2 Minute Read
Let me be clear before we go any further. The closing attorney I’ve worked with here in Birmingham for the last 14+ years is top-notch. Hundreds of deals, zero headaches—usually. Delays? Rare. Missed items? Even rarer.
But even the smallest slip-ups can cause big problems. After sitting in thousands of closings, I’ve learned what really trips people up—and I want to save you the stress.
This isn’t your step-by-step “how to close” guide. There are plenty of those online. This is about the things that actually derail closings—and how to spot them before they happen.
1. Title Commitment:
Think of the title commitment (aka title report or title binder) as a snapshot of a property’s legal status. It tells you what the title company will insure—and what it won’t.
Here’s what to watch for:
Correct ownership and legal description
Liens and debts you’re assuming
Easements, restrictions, or encroachments
Conditions for title insurance
Protection against unexpected claims
Even with a veteran attorney, I always double-check. One tiny error—like a parcel ID off by a single digit—can cost you time, even if it’s technically fixable.
2. Payoff Letters:
Payoff letters can kill your closing timeline. Private investors? Usually easy. Institutional lenders? Nightmare territory. Mortgages change hands so often that the servicing company might take two weeks ore more to finally issue the letter.
Rule #1: Don’t wait for your attorney to chase it. Stay on top, communicate constantly, and get ahead of potential delays.
Case in point: I’m refinancing a property using the BRRRR strategy. Same lender as my hard money loan. Sounds simple, right? Wrong. The closing attorney required by the seller’s bank never recorded the deed. In 25 years, I’d never seen this. We had to fix it before we could even schedule closing. Lesson learned: don’t blindly trust anyone, no matter how confident they sound. And this closing attorney I will never use again.
3. Mortgage Satisfaction Letters:
Refinancing? Make sure old mortgages are satisfied and recorded. Most attorneys say it’s the lender’s responsibility, but I insist it’s on the attorney to follow through.
I’ve had closings delayed because a loan paid off years ago never recorded a mortgage satisfaction letter. Tracking it down is a nightmare—and one you want to avoid.
4. Insurance:
Insurance might sound boring, but mistakes here can stall your closing too. Lenders usually require:
Replacement cost coverage: Covers full appraised value, not just what you invested
Loss of rent coverage: Typically six months
Minimum deductible: Often $5,000 for rentals
Lender listed as additional insured
It is pretty standard, but it often requires back-and-forth between your lender and insurance company to get it right. I make sure I’m copied on every email so questions get answered quickly—no surprises on closing day.
Boring? Maybe. But ignoring these details can ruin your closing day faster than anything else. Spend a little time now checking these items, and you’ll save yourself a ton of stress later.