Common Title Issues Found in Dearborn Homes
When purchasing a home in Dearborn, Michigan (or anywhere in Michigan, for that matter), one of the most critical aspects to verify is the condition of the title. A “clear title” means that the ownership history of the property is clean and free of claims, liens, or defects. However, in practice, many homes come with hidden issues—sometimes referred to as “clouds on title”—that can delay closings, incur costs, or even threaten ownership down the road. Wikipedia+2Noble Path Legal+2 Below are several of the most common title problems found in the Dearborn market and how buyers, sellers, and real?estate professionals can protect themselves.
1. Unpaid Property Taxes or Special Assessments
In Michigan, unpaid property taxes and municipal assessments (for example, for water, sewer or roads) can create liens on the property that survive the sale unless properly cleared. As noted by title professionals, these unpaid taxes and assessments are “deal-breakers” if not discovered early. Blue Pointe+1
Why it matters in Dearborn:
Why it matters in Dearborn:
- Older homes and city properties may have past special assessments or unpaid tax balances.
- A buyer may inherit the debt if the seller has not cleared it.
What to watch for: - Check with the Wayne County Treasurer’s office for tax delinquency records.
- Ensure the title company includes a search for municipal liens.
2. Unknown or Missing Heirs / Probate Defects
When a previous owner has passed away and the property passed via intestate descent (without a valid will) or was never properly probated, future claims by heirs may surface. One Michigan title search blog lists “unknown heirs” as a common title defect. Blue Pointe+1
Relevance for Dearborn homes:
Relevance for Dearborn homes:
- Family-held properties that have been passed down may lack full documentation.
- If a property is transferred without addressing all heirs, someone can later challenge ownership.
Precautions: - Have the seller provide evidence of a proper probate or heirship affidavit.
- Title companies should search for all possible heirs in the chain of title.
3. Unreleased or Undisclosed Liens and Mortgages
Even when a mortgage is paid off, the recorded public record may still show the lien if the lender did not properly file a release. Michigan title experts highlight this as a frequent issue. Sonic Title+1
How this plays out:
How this plays out:
- A buyer may assume the previous lien is gone, only to find it re-emerges when refinancing or selling.
- Lenders may refuse to issue a bond or title insurance if the release is missing.
Recommended steps: - Require the seller to provide proof of payoff and a recorded lien release.
- The title search should include a “discharge of mortgage” check in the register of deeds.
4. Boundary, Survey, or Easement Disputes
Older neighborhoods, subdivisions, and city lots (such as those in Dearborn) may have ambiguous lot lines, unrecorded easements, or driveways/fences encroaching on neighbors’ property. According to Michigan title advice, these boundary issues are common. Sonic Title+1
Potential risks:
Potential risks:
- You build a garage, only to discover part of it lies on a neighbor’s lot or easement.
- An unrecorded utility easement permits access across your backyard, limiting future use.
Mitigation tactics: - Consider ordering a current land survey, especially for older homes or those with irregularly shaped lots.
- Review any recorded easements and verify utility/rights?of?way with the title report.
5. Clerical Errors and Public?Record Inaccuracies
Simple mistakes—such as misspelled names, incorrect legal descriptions, missing notarization, or improperly indexed deeds—can cloud the title. These are frequently ignored but can derail a sale or refinance. Sonic Title+1
Why is this relevant in Dearborn?
Why is this relevant in Dearborn?
- High volume of older properties, with records dating back many decades.
- Small errors can accumulate, such as transfers via quitclaim or name changes after marriage.
What to do: - Ensure the title company conducts a thorough chain-of-title search that extends back sufficiently (typically 20+ years in Michigan). markmuellerattorney.com
- If errors are found, correct them via deed amendment, affidavit, or quiet title action.
6. Deed Fraud or Forged Documents
While perhaps less common than tax or lien issues, fraud is a real risk in Michigan real estate. For example, forged deeds or unauthorized transfers can significantly cloud title. Noble Path Legal
For Dearborn homebuyers, this means:
For Dearborn homebuyers, this means:
- Always verify the seller’s identity and that they are the legitimate owner.
- Be alert to unexpected changes in ownership or unknown filings on your property after you purchase it.
Protective steps: - Buy owner’s title insurance as well as lender’s title insurance.
- Monitor your property’s public records periodically to catch unauthorized transfers.
7. Restrictive Covenants, HOA Liens, or Subdivision Rules
Many suburban neighborhoods in and around Dearborn are subject to homeowners’ associations or recorded covenants. Unpaid HOA dues may result in a lien, and the restrictions may affect your use of the property. Michigan title guidance emphasizes the importance of reviewing these obligations. Sonic Title
Why this matters:
Why this matters:
- You may purchase a home and later find you cannot change the exterior color, add a shed, or rent out the property due to covenants.
- Unpaid HOA fees may be lurking in the title chain and transfer to the new owner.
Advice: - Obtain the HOA’s statement of dues/assessments and verify they are paid in full.
- Review the recorded covenants, conditions, and restrictions (CC&Rs) before purchase to ensure your planned use aligns.
Buyer & Seller Checklist for Dearborn Homes
- Order a professional title search early in the process to ensure a smooth transaction.
- Require both the buyer and the seller to agree on who will clear outstanding liens, taxes, or assessments.
- Purchase a comprehensive title insurance policy to lock in protection against unknown defects.
- Consider hiring a local real estate attorney familiar with Wayne County and the City of Dearborn to review any unusual issues.
- For sellers: disclose any known issues (e.g., unpaid municipal bills, easements, probate status) to avoid surprises and ensure a smoother closing process. sellsoonbluemoon.com
- For buyers: allocate a line item in your budget for title/showing resolution costs (surveys, clearances, corrections).
- If you detect complex ownership (trusts, estates, unclear heirship), opt to resolve these before closing rather than “hoping” they won’t surface later.
Final Thoughts
Owning a home in Dearborn—or any Michigan city—is not just about the structure and the mortgage—it’s about secure ownership. A seemingly small title defect today (unreleased lien, missing heir, boundary question) can escalate into a costly legal problem years later. Fortunately, most issues are identifiable and solvable during the purchase process. By being proactive—ordering a full title search, buying title insurance, and working with experienced professionals—you safeguard your investment and your peace of mind. As one title-industry article put it: “Even minor defects can surface at the worst time — right before closing.” Blue Pointe+1
In short: when buying in Dearborn, don’t only inspect the home—you need to inspect the title. It’s just as critical.
In short: when buying in Dearborn, don’t only inspect the home—you need to inspect the title. It’s just as critical.
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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