Quick Answer
Open title early, provide complete documentation from the start, disclose the transaction structure clearly, respond quickly to title requests, supply entity documents upfront, and identify any known title problems before closing.
Title delays are one of the most common reasons investor transactions fail to close on time. The good news is that most delays are avoidable. Here are seven ways investors can reduce the risk of title delays.
Seven Ways to Reduce Title Delays
- Open title early. The single most effective way to avoid delays. Opening title early gives the title company time to identify and resolve issues before your closing deadline.
- Provide complete documentation upfront. Send the full contract, all assignments, and all entity documents when you open the order, not after the title company requests them. For a full list, see what investors should send to title.
- Disclose the transaction structure clearly. If this is an assignment, a double closing, or a subject-to transaction, say so early. Surprises cause delays.
- Respond quickly to title company requests. When the title company asks for documents or information, respond as quickly as possible. Every day of delay compresses the remaining timeline.
- Supply entity documents before they are requested. If the buyer is an LLC, trust, or other entity, provide formation documents, operating agreement, and authorization to sign when opening the order.
- Identify known problems early. If you know the property has an old mortgage that was never released, a deceased owner, or a boundary question, tell the title company immediately. For more on what can go wrong, read what prevents clear title.
- Confirm lender or funding details. Make sure the title company has accurate contact information for your lender or funding source and understands the fund flow.
Do Not Hide the Weird Stuff
Some investors hesitate to disclose unusual transaction structures or known title problems, afraid the title company will reject the file. In reality, hiding issues almost guarantees delays when the problems emerge later. A good title company would rather know everything upfront so it can plan accordingly. For more on difficult title issues, see Title Problems and Curative Solutions.