Avoiding Common Title Issues in Allen Park Real Estate

Purchasing a home in Allen Park, Michigan, is an exciting milestone, but, as with all markets in Michigan, it comes with its own legal and procedural intricacies—especially when it comes to title matters. A “title” refers to the legal right to own a property. Ensuring the title is free of defects is fundamental to protecting your investment, avoiding delays at closing, and preventing costly headaches down the line.

Here’s a breakdown of the typical title issues in Allen Park real estate, why they matter, and how you can avoid them.

1. Outstanding Liens and Unreleased Mortgages

One of the most frequently encountered issues is a property carrying liens—claims for unpaid debts such as property taxes, contractor work, judgments, or old mortgages that were never properly released. In Michigan, if a lien isn’t discovered and removed before closing, it may transfer to the new owner. Sonic Title+2sellsoonbluemoon.com+2
Avoidance tip: Order a comprehensive title search as early as possible. Partner with a trusted local title company familiar with Wayne County records (Allen Park is in Wayne County). Confirm that all prior mortgages are released and that tax payments are current.

2. Boundary Disputes & Survey Errors

Especially in older neighborhoods (such as Allen Park, which has many homes built decades ago), issues can arise around property lines, encroachments, or outdated surveys. Sonic Title. For example, a fence might sit astride a neighbor’s lot, or a driveway may border a right-of-way.
Avoidance tip: Request or commission a current land survey (if one has not already been done). Compare it with the legal description in the deed. Ask the seller directly about any known boundary issues.

3. Probate, Undisclosed Heirs & Ownership Irregularities

If a previous owner passed away and the property did not undergo proper probate, or the heirs didn’t record their interest appropriately, someone could later emerge, claiming ownership rights. Noble Path Legal+1
Avoidance tip: Ensure the seller has clear authority to transfer the property. Verify that any required probate has been completed and that the property is properly titled. A title company can flag unresolved issues related to heirship.

4. Errors in Public Records

Even minor clerical errors—misspelled names, wrong lot numbers, improperly notarized deeds—can “cloud” a title and reduce marketability. Sonic Title+1
Avoidance tip: Review the chain of title carefully with your title company. If an error is found, request correction before closing the case. It’s better to clear up mistakes early than face delays later.

5. Easements, Rights of Way & Restrictive Covenants

Properties might carry easements (such as utility access or shared driveways) or restrictive covenants (HOA rules, neighborhood agreements) that affect how you can use the land. If those aren’t disclosed or understood, you may be surprised. Sonic Title+1
Avoidance tip: Ask your agent and title company to provide all documentation related to easements or covenants. Understand any limitations on usage, maintenance obligations, or unpaid assessments.

6. Fraudulent or Improper Transfers

Unfortunately, forgery, unsigned deeds, or transfers by unauthorized parties can and do occur. In Michigan, this risk underscores the importance of title insurance. Sonic Title+1
Avoidance tip: Work with reputable professionals (a title company and a real estate lawyer). Verify the seller’s identity and the property’s history. Consider buying an owner’s title insurance policy even if your lender requires only a lender’s policy.

Why Allen Park Needs Extra Vigilance

In Allen Park (and Wayne County broadly), many homes are older, have had multiple owners, and may have undergone short sales, foreclosures, or informal family transfers. Those kinds of histories increase the chances of title defects. Sonic Title+1
For instance, if a previous owner left unpaid contractor bills and a lien was filed but overlooked, you might become responsible after you purchase. The local context means you’ll benefit from a title partner that knows the Wayne County records inside and out.

Proactive Steps for Buyers & Sellers

Here’s a checklist to safeguard against title issues:

Start early: order a title search as soon as you’re under contract. That gives time to resolve problems before closing.
Choose your title company wisely: pick one with local experience in Allen Park/Wayne County and a strong reputation.
Obtain owner’s title insurance: While often optional for the buyer, an owner’s policy is a one-time cost that provides long-term protection. Sonic Title+1
Request full disclosure from the seller: ask about unpaid taxes, liens, boundary disputes, past transfers, and prior uses or easements.
Review all documents: deeds, surveys, plat maps, HOA/association documents, and easement records. Ensure that legal descriptions match and names are accurate.
Resolve issues ahead of time: don’t assume problems will “fix themselves” at closing. If there’s a lien, boundary discrepancy, or heir interest, tackle it early.
Keep good records: After closing, retain your title policy, recorded deed, and survey. They matter if you ever sell or refinance your home.

When Issues Arise — What to Do

If a title issue is discovered:

Don’t panic: Many problems are common and solvable (e.g., mis-recorded mortgage, minor boundary encroachment).
Engage professionals: A real-estate attorney familiar with Michigan law and a seasoned title company can advise on correction paths. Detroit Legal Group+1
Use quiet-title actions if needed: For lingering ownership disputes (such as an unknown heir or a fraud claim), you may need to file legal documents to “quiet” the title and clear the property.
Leverage title insurance: If you purchased an owner’s policy, check whether the issue is covered and whether the insurer will defend your title or reimburse loss.

Final Thoughts

For anyone buying or selling real estate in Allen Park, understanding and proactively dealing with title issues is not optional—it’s essential. Title problems are rarely glamorous, but they can silently derail transactions, saddle buyers with unexpected debts, or even threaten ownership rights.

By partnering with a knowledgeable local title company, verifying documentation early, ordering the correct insurance, and staying vigilant, you’ll be far better positioned to close smoothly and own with confidence. With these steps, you’ll turn what could be a legal minefield into one of the most stable, rewarding investments of your life.

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!

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125

Avoiding Common Title Issues in Allen Park Real Estate