You’ve found your dream home, negotiated the price, completed the inspection, and set your closing date…only to hear that the sale is “on hold due to a title issue.” Few things are more stressful for buyers and sellers than last-minute delays, which is why understanding the common title issues that can delay your closing is essential. With the right preparation, many of these problems can be identified early and resolved before they derail your timeline.

1. Liens: One of the Most Common Title Issues That Can Delay Your Closing

Liens are among the most common title issues that can delay your closing because they represent unpaid financial claims against the property. These may include:

• Contractor or mechanic’s liens for unpaid work
• Delinquent property taxes
• Outstanding child support obligations

A title search will uncover these claims, but they must be cleared before ownership can legally transfer. Resolving liens can take time, especially if the debts are old, disputed, or poorly documented.

2. Unreleased or Old Mortgages

Sometimes public records show a mortgage as unpaid even though it was satisfied years earlier. This often happens when the lender didn’t properly file a release. In such cases, sellers may need to locate proof of payoff or request a formal release from the lender, another title issue that can delay your closing if not addressed promptly.

3. Unknown Heirs and Estate-Related Complications

Properties passed through inheritance can bring unexpected surprises. A distant relative may claim ownership rights, or an heir may not have been properly notified during probate. These ownership disputes must be legally resolved before the sale can proceed, making them a significant title issue that could delay your closing for weeks or even months.

4. Clerical Errors and Recording Mistakes

Even small record-keeping errors can create major title headaches. Examples include:

• Misspelled names
• Incorrect legal descriptions
• Misrecorded property transfers

Because these inaccuracies affect the legal chain of ownership, they must be corrected through the proper channels—another example of common title issues that can delay your closing if not caught early.

5. Boundary Disputes and Survey Problems

When property lines don’t align with official records, neighbors may disagree over fences, driveways, or easements. A current property survey can reveal these discrepancies before they turn into closing-day delays. Resolving boundary disputes often requires negotiation, updated surveys, or legal agreements.

6. Undisclosed Easements or Encroachments

Easements grant others—neighbors, utility companies, municipalities—the right to use part of a property. While many easements are recorded and expected, undisclosed easements may impact how the buyer plans to use the land. Encroachments, where a structure extends over a property line, can also become time-consuming title issues that delay closing.

How to Prevent These Common Title Issues From Delaying Your Closing

The best way to stay ahead of potential problems is to partner with a reputable title company early in the process. A thorough title search can uncover hidden issues long before closing day. Purchasing an owner’s title insurance policy adds an extra layer of protection, shielding you from future disputes or unknown claims that may surface after you take ownership.

Most common title issues that can delay your closing are fixable, especially when experienced real estate and title professionals are involved. By understanding potential red flags and addressing them proactively, you can enjoy a smooth path to homeownership and ensure your closing stays on schedule.

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For more information, please contact our Clear Title in downtown Pensacola (850) 361-4029, Pace (850) 994-3838 or Pine Forest (850) 202-8518.  You can also reach us online and one of our professionals will be happy to speak with you.