What does a delayed closing due to an internal audit mean?

A delayed closing due to an internal audit typically indicates that the lender has requested a title audit. This process involves a thorough examination of the title record to ensure that there are no issues that could affect the property’s ownership or the lender’s security interest. The lender wants to confirm that the title is clear and that there are no existing claims, liens, or other complications that could impede the transaction.

This vital step is often necessary when a lender identifies potential discrepancies or risks associated with the property's title or the buyer's financial situation. Conducting a title audit can help protect all parties involved in the transaction by providing assurance that the title is in good standing before closing.

In contrast, the other options do not directly relate to the context of a delayed closing because of an internal audit. For instance, agent verification or financial obligations of the seller are different processes involved in real estate transactions that don't specifically involve the auditing of the title or internal checks. Similarly, a default by the buyer would manifest in an entirely different context and usually leads to different legal ramifications and procedures rather than a simple audit delay. Thus, the focus on verifying the title through an internal audit directly correlates with the reason for the delayed closing.