Buying a Historic Home in Dearborn? Watch for Title Problems

Purchasing a historic home in Dearborn, Michigan, can be a thrill for the preservation-minded buyer. These homes offer character, architectural distinction, and a strong sense of community. But along with charm, historic homes can carry some hidden title risks that may complicate ownership. Understanding the title history and securing proper protections are key to safeguarding your investment.

Why title issues matter with historic homes

When you buy a home, what you’re really buying is the title — the legal chain of ownership and rights attached to the property. According to the Michigan Department of Insurance and Financial Services’ guide, the title “includes all previous transfers of ownership and liens on the property.” Michigan+1
Historic properties often have longer chains of ownership, may have undergone additions and alterations, or are located in neighborhoods that have undergone significant evolution — all of which can increase the chances that something may have slipped through the cracks.
In Michigan, homes have been subject to title fraud, forged deeds, quitclaim deeds, and other defects that only become apparent after closing. Blue Pointe+1
In Dearborn and the surrounding region, given the age of many homes, the possibility of missing documentation, prior liens, or unrecorded easements is higher. A buyer of a historic home should therefore be especially cautious.

Common title problems to watch for

Here are specific title issues that are more likely to pop up with older homes, especially historic ones:

Forged or improperly recorded deeds
In Michigan, deed-fraud schemes have targeted homes via forged signatures, quit-claim deeds, or false transfers. Blue Pointe+1
For a historic house, you may find that a prior owner transferred ownership via a quit-claim deed (which provides little warranty) or that a deed was recorded incorrectly decades ago.
Undisclosed liens or tax issues
If a previous owner failed to pay taxes, had contractor liens from renovation work, or the property is part of a land contract rather than a conventional deed transfer, there may be hidden claims. The state guide lists “liens on a property… lost, forged or incorrectly filed deeds” as title defects. Michigan+1
With an older home, many renovations may have occurred over time without formal recording — for example, a previous owner may have added an extension or made modifications without clear permits or recorded easements.
Access or easement issues
For historic homes in tight older neighborhoods of Dearborn, there may be alleyways, right-of-way issues, or shared driveways. If a title search doesn’t reveal a prior owner granting easement rights (or failing to do so), you may face future restrictions.
Missing or broken chain of title / heirs
Older properties may have been transferred via wills, intestate succession, or bequests that were never properly recorded in a deed. The Historic Society of Michigan notes that many historic homes require “chain of title research” going back years to ensure each transfer was properly documented. Bay County Library System
A missing link could mean a long-lost heir has a claim, or the property may have been transferred improperly at some point.
Historic district designation and regulatory overlays
While not strictly a title “defect,” historic homes may fall under historic-district restrictions or preservation overlays. In Michigan, if your property is located in a local historic district, exterior changes may require approval from a historic district commission. City of Ann Arbor
While this doesn’t affect the title directly, it can affect your use of the property, which is part of your ownership rights. Make sure any historic district status is clear to you as part of due diligence.

How to protect yourself — step by step

If you are considering buying a historic home in Dearborn, here’s a roadmap to protect yourself:

Hire an experienced title company.
Select a title insurer or attorney who is familiar with older properties in Michigan. A reputable title company will conduct a thorough search, identify any known defects, and either clear them or disclose them to the buyer before closing. The Michigan guide says: “Before issuing a policy, the title agent or company conducts a detailed review of historical public records …” Michigan
Purchase owner’s title insurance
Many buyers assume only the lender needs a title policy (as part of the mortgage closing). But Michigan’s guide emphasizes that an owner’s policy protects you from unknown defects that pre?exist your purchase. Michigan+1
Given the extended history of a historic home, this protection is especially valuable.
Review the title commitment carefully.
After the search, the title insurer will issue a commitment showing existing issues (liens, easements, etc.). You should review it — ideally with your real estate attorney or agent — and ensure that any problematic items are resolved or deemed acceptable.
Perform independent due diligence specific to historic homes.
• Request the chain of title going back as far as feasible (especially if major renovations or transfers occurred). The Historic Society guide suggests tracing back to understand all transfers. Bay County Library System
• Check municipally for unrecorded work, historic district status, or prior land?contract sales.
• Verify any easements, driveway access, shared walls/structures, if the home is part of an older subdivision of Dearborn.
• Check for outstanding tax obligations or special assessments (many historic neighborhoods may have local improvement districts).
Understand regulatory implications
If the home is part of a designated historic district (local or national), inquire about the applicable restrictions. These may not affect ownership, but they affect rights — and if they were not disclosed, future use may be limited.

Why it’s worth the extra work

Although the steps above may seem like extra hassle, the payoff is substantial. Historic homes often hold great value — architecturally distinct, characterful, and embedded in established neighborhoods of Dearborn. With title protections in place, you can enjoy your home with far greater peace of mind.

Additionally, Michigan has taken steps to reduce the likelihood of title fraud. New legislation signed in 2024 targets filing fraudulent real estate documents with stiffer penalties. BridgeDetroit
Still, older records and historic transfers remain more vulnerable — so your due diligence matters.

Final thoughts

If you’re buying a historic home in Dearborn, treat the title as the foundation of your investment. Beware of the unique issues that historic properties bring: long ownership chains, potential for undocumented transfers or easements, older systems, and regulatory overlays. Use a skilled title company, obtain an owner’s policy, review the commitment, and conduct extra diligence around the home’s history and condition.

By investing a little more time up front, you’ll protect yourself from nasty surprises later — allowing you to enjoy the character, charm, and legacy of your historic home without the worry of hidden title risks. Buying smart in Dearborn means combining passion for historic architecture with solid legal protection.

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

Buying a Historic Home in Dearborn? Watch for Title Problems