Title Mistakes That Can Delay Your Closing—and How to Prevent Them

When you’re gearing up to close a real estate deal, the last thing you want is to be hit with unexpected title issues that could send your closing date into a tailspin. Title problems can cause unnecessary delays and even prevent the deal from going through altogether—leaving you stuck in the fast lane with nowhere to go.

But don’t worry—knowing what to look out for can save you time, money, and headaches. In this post, we’re diving into the most common title issues that could arise during a real estate transaction and, more importantly, how you can address them before they bring your closing to a screeching halt.

Liens That Could Delay Your Closing (Or Kill It)

Imagine this: you’ve found the perfect property, the price is right, and you’re ready to seal the deal. But then, your title search reveals liens on the property—debts that haven’t been paid off by the current owner. These could be for unpaid property taxes, homeowner association fees, or contractor bills.

Liens aren’t just a small inconvenience—they’re a legal claim on the property that could keep you from getting clear ownership. Worse yet, they could be passed on to you once you take possession.

The Fix: Before you even think about closing, make sure the seller clears any outstanding debts. Ask for documentation that proves any liens have been resolved, and don’t move forward without a clear title.

Property Line Confusion: Is Your Fence Really Your Fence?

It may sound trivial, but a property line dispute can turn into a huge mess if not addressed before the sale. You could find yourself inheriting a chunk of land you didn’t expect, or worse, having to deal with a neighbor who isn’t too happy about it.

A boundary issue might arise when there’s no survey or the existing survey doesn’t match up with the reality of the land. Without a clear picture of where your property begins and ends, you could end up with an unpleasant surprise after the sale.

The Fix: A professional property survey is a must-have. It will clearly mark out the boundaries, giving you peace of mind. If any discrepancies are found, you’ll need to address them with the seller or potentially the neighbors before you proceed with closing.

Incorrect or Missing Paperwork: Who’s Really the Owner Here?

Nothing’s worse than realizing that critical property documents are either missing or flat-out incorrect. Sometimes, previous transactions weren’t properly recorded, or the deed has mistakes that make it unclear who actually owns the property. These issues can throw your whole transaction into question.

The Fix: Title companies will typically conduct a title search to uncover these issues. If something’s off, the seller will need to correct it by getting the proper documentation filed and recorded. Don’t skip this step—double-check that everything is in order.

Who Gets to Sell This Property? Missing Owners and Undisclosed Interests

In some cases, you could face an issue where the seller doesn’t have full authority to sell the property. This often happens when a previous sale wasn’t handled correctly, or if the property owner has passed away without properly transferring the title to their heirs.

The Fix: Make sure all parties involved in the transaction are on the deed and authorized to sell the property. A thorough title search will reveal any missing owners or undisclosed heirs who need to sign off on the sale. If someone else has a claim to the property, this needs to be resolved before you can close.

Fraudulent Transfers: When Someone Else Tries to Sell What Isn’t Theirs

Although rare, fraudulent title transfers can cause major headaches. This happens when someone sells a property they don’t actually own or forges documents to make it appear like they’re the rightful owner. The risk here is huge—you could end up with a property that’s legally tied up in someone else’s dispute.

The Fix: A thorough title search can often uncover fraudulent activity, but it’s best to also invest in title insurance to protect yourself. If fraud is detected, you’ll need to get legal assistance to untangle the mess before moving forward.

Inheritance Nightmares: Who’s Really the Owner?

If the property has been passed down through generations, it’s possible there may be an issue with the inheritance process. Maybe there wasn’t a will, or the seller hasn’t properly transferred ownership to their heirs. Any of these things could cause a significant delay, especially if other potential heirs come forward after the sale is in motion.

The Fix: Make sure the seller’s estate is properly handled before you close. The title search should reveal whether the property is clear of any inheritance issues. If there’s any question about ownership, it’s important to get it resolved before moving forward with the sale.

Judgments Against the Seller: A Legal Tangle You Don’t Want

Imagine moving forward with a deal only to find out that the seller has outstanding judgments or legal actions against them. Whether it’s a lawsuit or unpaid debts, these judgments can attach to the property, and if not cleared, they could become your problem.

The Fix: As part of your title search, make sure all judgments are disclosed and cleared. If the seller is dealing with legal issues, those need to be resolved before you proceed with the sale.

How to Avoid Title Issues Before They Hold Up Your Closing

While these issues might seem overwhelming, there’s good news—you don’t have to navigate title problems alone. Here are a few steps you can take to protect yourself:

Closing Thoughts: Don’t Let Title Issues Hold You Back

Title issues might seem like small roadblocks, but they can cause huge delays in your real estate transaction—if not handled correctly. By staying informed, working with the right professionals, and doing your due diligence, you can avoid the worst-case scenario and keep your closing on track.

Ready to Close Without the Headaches? Let Us Handle Your Title Issues!

Don’t let title issues stand in the way of your real estate goals. At DuFault Law, we specialize in ensuring smooth, hassle-free closings by addressing common title issues before they cause delays. Protect your investment and avoid costly mistakes. Contact us today for a thorough title review and expert legal guidance at (239) 422-6400 or email contact@dufaultlaw.com. Let’s make sure your closing goes off without a hitch!