What Can Delay Escrow—and How to Avoid It

Introduction

Even the smoothest transactions can get derailed during escrow. As a Realtor, knowing the common causes of delays—and how to prevent them—sets you apart as a true professional.

Top Causes of Escrow Delays — and How to Prosper Through Them

1. Incomplete or Incorrect Documentation
   Missing signatures or overlooked forms can cause escrow officers to hit pause.
   Prosper Preparedness: Use a shared checklist and send reminders ahead of deadlines. Double-check every document before submission.
   
   
2. Appraisal Issues
   When a property appraises for less than the purchase price, it can trigger negotiations and delays.
   Prosper Perspective: Set expectations early with clients. Discuss comps and be ready to pivot quickly if the appraisal comes in low.
   
   
3. Loan Funding Delays
   Last-minute lender requests for documents can stall funding and push back the closing.
   Prosper Pacing: Work with reliable lenders. Prep buyers on documentation early to keep things moving.
   
   
4. California Insurance Delays
   After a severe wildfire season, many insurers are retreating from fire-prone zones—making it harder for buyers to secure coverage on time.
   Prosper Protection: Encourage clients to begin shopping for insurance immediately after offer acceptance. Connect them with brokers who understand local risk zones and policy restrictions.
   
   
5. Title or Lien Issues
   Unknown liens or ownership disputes can halt escrow until resolved.
   Prosper Proof: Open escrow with a title team that moves fast and uncovers potential issues early.
   
   
6. Contingency Complications
   Inspection delays, buyer financing issues, or sale of the buyer’s prior home can all trigger hold-ups.
   Prosper Precision: Stay organized, set clear timelines, and push for early contingency removals.

Prosper Pro Realtor Tip

Build “escrow buffer time” into your offer. A 35-day escrow feels like a gift when things run behind.

Conclusion

Delays aren’t always avoidable—but they’re manageable with proactive communication and Prosper Escrow by your side. Your clients will thank you for keeping their deal on track.

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