Quick Answer
The most common title problems found before closing include old mortgages never released, tax liens, judgments, mechanic's liens, HOA liens, deceased owners, unknown heirs, incorrect legal descriptions, incorrect names, broken chains of title, trust and entity problems, incorrectly recorded documents, divorce issues, and conflicting public records.
Title problems are discovered every day during the title examination process. Knowing which ones appear most frequently helps buyers, sellers, and real estate professionals prepare and respond. Here are the most common categories of title problems found before closing.
1. Old Mortgages Never Released
A mortgage that was paid off but never formally released from the public record is one of the most common issues found during a title search. The lender may have gone out of business, merged, or simply failed to record the release. Learn why an old mortgage may still show on title.
2. Tax Liens, Judgments, and Other Liens
Unpaid property taxes, state or federal tax liens, judgments against the seller, and mechanic's liens from contractors are frequently discovered during the title search. These must typically be paid and released before the title can be transferred free of the lien.
3. Deceased Owners
When a previous owner died and the property was never properly transferred through probate or survivorship, the title examiner must determine who currently holds title. See what happens when an owner dies before selling.
4. Unknown or Missing Heirs
An heir who was not included in a prior probate proceeding may still hold an ownership interest. Learn whether an unknown heir can stop a closing.
5. Incorrect Legal Descriptions
A prior deed may contain an incorrect legal description that affects the current transaction. Learn what happens when the legal description is incorrect.
6. Incorrect Names
A misspelled name, wrong name, or name that does not match the person's legal name can create a title problem. Learn how to fix a misspelled name on a deed.
7. Broken Chain of Title
A gap or break in the recorded ownership history. Learn what happens when the chain of title is broken.
8. Trust and Estate Problems
Improper trust administration, missing trust documents, or confusion about trustee authority can delay closing.
9. Entity Problems
When the owner is an LLC, corporation, or partnership, proper documentation of authority to sell is required.
10. Incorrectly Recorded Documents
A document that was recorded with errors may need correction. Learn what happens when a deed was recorded incorrectly.
11. Divorce Issues
A former spouse may still have an ownership interest if the divorce decree did not address real property.
12. Conflicting Public Records
Different government records may disagree about ownership, boundaries, or other facts. Learn what happens when public records conflict.
Is This a Closing Killer?
No single category is an automatic closing killer on its own. The severity depends on the specific facts, the jurisdiction, the parties involved, and the time available before closing. Most common title problems can be resolved, but they require attention and, in many cases, experienced title professionals who know how to navigate them.
The Biggest Mistake
The biggest mistake people make with title problems is waiting too long to address them. When a title issue is discovered early in the process, there is time to gather documents, contact parties, pursue curative actions, or seek legal guidance if needed. Waiting until the week before closing significantly reduces options. Tell your title company about any known issues when you open the title order. Read about what happens when an old mortgage was paid but never released.
FAQs
How often do title problems appear?
Title problems are discovered in a significant percentage of transactions. Some are minor and easily resolved. Others require more extensive curative work.
Can a title problem be fixed before closing?
Most can, given enough time and the right curative steps. The earlier the problem is identified, the more options are available.