Avoiding Common Title Issues Before Closing Day
The final steps of a real estate transaction should be smooth and celebratory, not stalled by preventable title problems. Yet, time and again, closings are delayed or derailed due to issues that could have been caught earlier in the process.
Whether you’re a buyer, seller, agent, or lender, understanding the most frequent title issues, and how to avoid them, can make all the difference. Here are the most common title problems and how to prevent them before closing day.
1. Unknown Liens or Unpaid Debts
Previous owners may leave behind unpaid property taxes, utility bills, contractor fees, or mortgage balances, resulting in liens that legally bind the property. If unresolved, these can delay or even cancel a transaction.
How to avoid it:
Work with a title company that performs a comprehensive title search to uncover and address any liens early in the process.
2. Errors in Public Records
Clerical mistakes happen, misspelled names, incorrect legal descriptions, or missing signatures can cause major closing delays.
How to avoid it:
A detail-oriented title examiner will review public records, flag inconsistencies, and work to correct them long before they impact your closing.
3. Unknown Heirs or Ownership Disputes
In cases of inherited property, there may be heirs who are unaware of their claim, or disputes between family members over ownership rights.
How to avoid it:
A thorough title investigation can reveal any potential claims and ensure proper legal procedures have been followed in transferring ownership.
4. Forged or Fraudulent Documents
While rare, fraud does happen. A forged deed or falsified ownership can jeopardize a transaction and result in costly legal battles.
How to avoid it:
Partner with a title company that not only checks historical ownership records but also verifies document authenticity through legal review processes.
5. Encroachments or Boundary Disputes
Sometimes structures like fences, driveways, or sheds extend over property lines, leading to disputes that can delay or prevent a sale.
How to avoid it:
An up-to-date property survey paired with the title search helps identify boundary issues before closing day.
The Bottom Line
A clean title is essential for a successful real estate transaction. By being proactive and partnering with an experienced title company, you can catch and correct these issues well before they become deal breakers.
We’re Here to Help
At New Door Title, we specialize in title examination and clearance with a focus on speed, accuracy, and clear communication. Whether you're preparing to close or just getting started, let us help you avoid surprises and ensure a smooth path to the finish line.