The Most Common Title Problems Found During Searches
When buying or selling real estate, a title search is one of the most critical steps in the transaction. A title search examines public records to confirm a property’s legal ownership and identify any issues that could affect the buyer’s rights. While many transactions proceed smoothly, title searches often uncover problems that must be resolved before closing. Understanding these common title issues can help buyers, sellers, and investors avoid costly delays and surprises.
Below are the most common title problems found during searches and why they matter.
1. Outstanding Liens
One of the most frequent issues discovered during a title search is an outstanding lien on the property. Liens give creditors a legal claim against a property for unpaid debts. Common liens include:
- Mortgage liens
- Tax liens
- Mechanic’s liens from unpaid contractors
- HOA liens
If a lien exists, it must be paid off or released before ownership can transfer. Otherwise, the new owner could become responsible for the debt. This is why lien resolution is a top priority before closing.
2. Unpaid Property Taxes
Unpaid or delinquent property taxes are another major red flag in title searches. Local governments place tax liens on properties when taxes go unpaid, and these liens often take priority over other claims.
If not resolved, unpaid taxes can lead to penalties, interest, or even tax foreclosure. Buyers typically require proof that all property taxes are paid in full before finalizing the transaction.
3. Errors in Public Records
Clerical or filing errors in public records are more common than many people realize. These errors can include:
- Misspelled names
- Incorrect legal descriptions
- Wrong property boundaries
- Recording documents under the wrong parcel number
Even small mistakes can create serious legal complications. If a document is recorded incorrectly, it may cast doubt on ownership or create disputes later. Title professionals work to correct these errors before closing.
4. Unknown Heirs or Ownership Disputes
Properties passed down through inheritance often carry title complications. If an owner dies without a clear will or a probate process, unknown heirs may later come forward to claim ownership rights.
These disputes can delay or completely halt a sale. Title searches help uncover prior ownership transfers, but resolving heirship issues often requires legal action, affidavits, or involvement in probate court.
5. Boundary and Survey Disputes
A title search may reveal discrepancies related to property boundaries or easements. These issues often arise from outdated surveys, unclear legal descriptions, or neighboring encroachments such as:
- Fences crossing property lines
- Driveways shared with adjacent properties
- Structures built outside legal boundaries
Boundary disputes can affect property value and use. Updated surveys and legal clarification are often required to resolve these issues.
6. Easements and Rights-of-Way
Easements grant others the legal right to use part of a property for specific purposes, such as utility access or shared driveways. While easements are not always problematic, undisclosed or misunderstood easements can catch buyers by surprise.
Common easement issues include:
- Utility company access
- Shared access roads
- Drainage or sewer easements
Title searches reveal recorded easements so buyers know exactly what rights others have on the property.
7. Forged or Fraudulent Documents
Although less common, forged or fraudulent documents can appear in a property’s chain of title. This can include forged deeds, fake signatures, or fraudulent transfers made without the true owner’s knowledge.
These issues are serious and can invalidate ownership claims. Title insurance plays a crucial role in protecting buyers from losses caused by fraud discovered after closing.
8. Breaks in the Chain of Title
The “chain of title” refers to the complete history of ownership transfers for a property. A break in the chain occurs when a transfer is missing, improperly recorded, or legally defective.
Examples include:
- A deed that was never recorded
- An incorrect transfer after a divorce
- Missing documentation from a past sale
A clean, continuous chain of title is required to confirm legal ownership. Breaks must be corrected before closing can proceed.
9. Unreleased Mortgages
Sometimes, a mortgage that has been fully paid off still appears as an active lien in public records. This happens when the lender fails to record a satisfaction or release of the mortgage.
Even though the debt no longer exists, the unreleased mortgage clouds the title. Title companies work with lenders to obtain proper documentation to clear the lien.
10. HOA and Covenant Issues
Properties governed by homeowners associations (HOAs) or restrictive covenants may have additional title concerns. These can include:
- Unpaid HOA dues
- Violations of community rules
- Restrictions limiting property use
Title searches identify these obligations so buyers understand their responsibilities and any limitations tied to ownership.
Why Title Problems Matter
Unresolved title problems can delay closings, increase costs, or even cause deals to fall apart. In worst-case scenarios, buyers may face legal disputes or financial losses after purchase. That’s why lenders require title searches and title insurance for most real estate transactions.
How Title Insurance Helps
Title insurance protects buyers and lenders from financial losses arising from covered title defects. If a hidden issue surfaces after closing—such as an unknown lien or ownership dispute—title insurance can cover legal costs and losses, providing peace of mind.
Final Thoughts
Title searches are essential to ensuring a smooth and secure real estate transaction. While many properties have minor issues that are easily resolved, some title problems require additional time, legal work, or negotiation. By understanding the most common title problems found during searches, buyers and sellers can better prepare for the process and avoid unexpected setbacks.
Working with experienced title professionals and securing title insurance are the best ways to protect your investment and ensure clear, marketable ownership.
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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