Table of Contents
- Worried About Title Issues at Closing?
- 10 Potential Title Problems at Closing
- Lien on the Property
- Boundary Disputes
- Unreleased Mortgage or Deed of Trust
- Easements and Encroachments
- Forged Documents
- Outstanding Judgments or Liens Against Previous Owners
- Unreleased Heirs or Spouses’ Claims
- Missing Heirship Affidavits or Probate Proceedings
- Errors in Public Records
- Undiscovered Liens or Encumbrances
- How to Resolve Title Issues
- How Long Does It Take to Resolve Title Issues?
- Our Conclusion on Potential Title Problems and Resolution
Worried About Title Issues at Closing?
If you’re in the process of selling your home, title issues can cause unexpected delays or even prevent a sale altogether. Title problems affect thousands of real estate transactions annually. According to the American Land Title Association (ALTA), title defects impact nearly 36% of real estate transactions, requiring additional research or resolution before closing.
10 Potential Title Problems at Closing
1. Lien on the Property
A lien is a legal claim against a property due to unpaid debts. Common types include tax liens, mechanic’s liens, or unpaid mortgages.
2. Boundary Disputes
A boundary dispute occurs when there is a disagreement over property lines, often due to unclear surveys or conflicting legal descriptions.
3. Unreleased Mortgage or Deed of Trust
A prior mortgage or deed of trust might not have been properly released, leading to complications at closing.
4. Easements and Encroachments
An easement allows someone else to use a part of your property, while an encroachment is an unauthorized structure extending onto your land.
5. Forged Documents
Title fraud is a growing problem. Fraudulent deeds, fake notary stamps, or forged signatures can create ownership disputes.
6. Outstanding Judgments or Liens Against Previous Owners
If a previous owner had unpaid debts, those liabilities can sometimes pass on to the new owner.
7. Unreleased Heirs or Spouses’ Claims
In cases of inheritance, unknown heirs may come forward claiming ownership, causing delays in the sale.
8. Missing Heirship Affidavits or Probate Proceedings
A property that has not gone through proper probate proceedings might have unclear ownership, creating legal hurdles.
9. Errors in Public Records
Clerical errors, such as incorrect property descriptions or misspelled names, can lead to legal disputes.
10. Undiscovered Liens or Encumbrances
Some liens might not be apparent during an initial title search but could emerge later, requiring legal resolution.
How to Resolve Title Issues
- Identify the Issue Clearly – Understand the specific problem causing the delay.
- Consult Expert Advice – Seek help from a real estate attorney or title company.
- Conduct an Extensive Title Search – A thorough investigation helps uncover potential issues.
- Acquire Comprehensive Title Insurance – Protect yourself from future claims.
- Address the Specific Problem Methodically – Resolve each issue step-by-step.
- Rectify Documentation Errors Promptly – Ensure all documents are accurate.
- Explore Mediation or Legal Resolution – Some disputes may require negotiation or court intervention.
- Ensure Proper Recording of Documents – Proper filing helps prevent future claims.
- Thoroughly Review Title Commitment and Policy – Understand the exclusions and coverage of your policy.
- Continuous Professional Guidance – Work with professionals to avoid new title issues.
How Long Does It Take to Resolve Title Issues?
The time required to resolve title issues depends on the complexity of the problem. According to industry reports, minor title defects can be resolved in 7–14 days, while more complicated issues like probate cases or fraud can take several months.
| Title Issue | Estimated Resolution Time |
|---|---|
| Clerical Errors | 7-10 days |
| Liens & Judgments | 2-6 weeks |
| Probate & Heirship | 1-6 months |
| Boundary Disputes | 3-12 months |
Our Conclusion on Potential Title Problems and Resolution
Dealing with title issues can be complex and time-consuming. If you’re facing title challenges, XLNC Exotic Homes can help streamline the home-selling process by offering a hassle-free sale with a free consultation. Avoid delays and legal complications—get professional assistance today!
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