Purchasing a home is one of the biggest investments most Michigan residents will ever make. While the process can be exciting, it also comes with its share of legal complexities, particularly when it comes to the home’s title. A clear title is essential for ensuring that your property rights are secure and undisputed. Unfortunately, many buyers encounter title issues that can cause delays, unexpected expenses, or even loss of ownership rights.
This article examines the most common title issues in Michigan homes and offers practical steps to avoid them. Whether you’re buying, selling, or refinancing, understanding these challenges can save you time, money, and frustration.
1. Outstanding Liens and Mortgages
One of the most common title issues in Michigan involves liens—legal claims placed on a property due to unpaid debts. These debts may include:
- Unpaid mortgages
- Contractor’s mechanics’ liens
- Unpaid property taxes
- Child support or judgment liens
When a lien exists, the creditor has a legal right to be paid from the proceeds of the property sale. If not resolved before closing, the lien can transfer to the new homeowner, leaving them responsible for someone else’s debt.
How to Avoid It:
- Always order a professional title search before closing.
- Work with a title company or real estate attorney to ensure all liens are paid and released.
- Purchase title insurance for added protection against undiscovered liens.
2. Boundary and Survey Disputes
Property boundaries in Michigan can sometimes be unclear, especially in rural areas or older neighborhoods. Disputes may arise if a fence, driveway, or structure extends across a neighbor’s property line. In some cases, boundary disagreements arise from outdated or conflicting property surveys.
How to Avoid It:
- Have a current land survey conducted before finalizing your purchase.
- Compare the survey with the legal description in the deed.
- Resolve discrepancies with the seller and neighbors before closing.
A small encroachment today could turn into a major legal battle later, so it’s best to identify issues early.
3. Probate and Heirship Issues
Michigan law requires proper probate proceedings when property is passed down after an owner’s death. Problems can occur when heirs are not properly identified, paperwork is incomplete, or one heir sells without the consent of others. If you purchase a home with unresolved heirship issues, you could face claims from unknown heirs later.
How to Avoid It:
- Request verification of the seller’s legal right to sell the property.
- Ensure the property went through proper probate court proceedings.
- Confirm that all heirs or legal representatives have signed off on the sale.
Working with an experienced title company is essential in these cases, as they will check probate court records and confirm ownership.
4. Errors in Public Records
Even minor clerical errors in Michigan’s public records can lead to significant title issues. Common examples include:
- Misspelled names
- Incorrect legal property descriptions
- Recording errors with deeds or mortgages
These errors can cloud the title, making it difficult to establish clear ownership.
How to Avoid It:
- Hire a reputable title company to thoroughly examine the chain of title.
- Use title insurance to protect against undiscovered errors.
- If errors are found, request a correction from the appropriate county office before closing.
5. Fraudulent or Forged Documents
Unfortunately, fraud can occur in Michigan real estate transactions. In some cases, fraudulent deeds or forged signatures are used to transfer property illegally. If the fraud is discovered after your purchase, you could face serious challenges to your ownership rights.
How to Avoid It:
- Verify the seller’s identity and confirm that they are the true property owner.
- Use secure, verified channels for transferring funds.
- Purchase owner’s title insurance—this is one of the few ways to protect yourself against fraud-related title claims.
6. Unreleased Prior Mortgages
Sometimes, a previous owner’s mortgage is paid off but never officially released in the public record. This creates confusion and may appear as if the property is still encumbered by debt.
How to Avoid It:
- Have your title company verify that all prior mortgages are released.
- Request a recorded “discharge of mortgage” document from the lender.
- Do not close until the title is free of these old claims.
7. Easements and Rights of Way
Easements permit others to use a portion of your property for a specific purpose, such as utility access or shared driveways. While easements are not always problematic, undisclosed easements can restrict how you use your property.
How to Avoid It:
- Review the property’s title report and survey for easements.
- Ask questions about any recorded rights of way.
- Consider how an easement may impact your future property use before making a purchase.
8. Undisclosed or Missing Heirs
In cases where a Michigan homeowner dies without a will, heirs may later surface claiming ownership of the property. Even years after a sale, these heirs could challenge the validity of your ownership if probate was not properly settled.
How to Avoid It:
- Confirm through your title company that probate was handled correctly.
- Require seller affidavits confirming there are no outstanding heirs.
- Title insurance can protect against later claims by unknown heirs.
9. Restrictive Covenants and HOA Issues
Many Michigan properties, particularly those in subdivisions or condominium communities, are subject to restrictive covenants and homeowners’ association (HOA) rules. These restrictions may limit renovations, exterior colors, or even the ability to rent your property. In some cases, unpaid HOA dues may also create a lien.
How to Avoid It:
- Review all HOA documents and bylaws thoroughly before making a purchase.
- Confirm there are no unpaid HOA dues or assessments.
- Make sure the restrictions align with your intended use of the property.
10. Unpaid Property Taxes
Delinquent property taxes are another frequent issue in Michigan real estate. Counties can issue tax liens or, in severe cases, foreclose on the property. If you purchase a home with unpaid taxes, you may inherit this burden.
How to Avoid It:
- Confirm with the local county treasurer’s office that property taxes are current.
- Ask your title company to verify that there are no tax liens.
- Require the seller to settle unpaid taxes before closing.
Final Thoughts: Protecting Yourself as a Michigan Homebuyer
A home is more than just an investment—it’s your safe space, your future, and often your legacy. Title issues can threaten that investment if left unchecked. The good news is that most problems can be identified and resolved before closing with the help of professionals.
To protect yourself when buying a Michigan home:
- Work with a reputable title company that will conduct a thorough title search.
- Always purchase title insurance—it’s a one-time cost that protects you for as long as you own your home.
- Review all documents carefully and ask questions about anything unclear.
- Resolve disputes promptly rather than assuming they will resolve themselves after closing.
By being proactive and vigilant, Michigan homebuyers can avoid common title issues and enjoy peace of mind in their new homes.
Learn more about our comprehensive title insurance services here.
Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!
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