Quick Answer
An unknown or unaddressed heir can delay or stop a closing if they may hold an unresolved ownership interest in the property. The title company may require probate, heirship documentation, affidavits, deeds from the heirs, or court orders before the title can be insured.
How Does This Happen?
When a property owner dies, their interest in the property passes to their heirs according to state law, the terms of a will, or the rules of intestate succession. If the estate was never properly probated or if some heirs were not included in the probate proceeding, those heirs may still hold an ownership interest that was never transferred.
Example
A father died and left his house to his son. The son lived in the house for years, paid taxes, and maintained the property. When the son tried to sell, the title examination revealed that the father had another child from a previous marriage. The other child never signed any deed and was never included in any probate proceeding. The title company needs to determine whether the other child holds an ownership interest before the transaction can close.
What Does Title Need?
To resolve an unknown heir situation, the title company typically needs to establish the complete list of heirs and confirm that all heirs have either participated in the transfer or had their interests properly addressed. This may involve probate, affidavits of heirship, or documentation from the estate administration. Learn what happens when an owner dies before selling.
Is This a Closing Killer?
Not necessarily. Many unknown heir situations can be resolved, particularly if the heirs are cooperative. The delay depends on how quickly the heirs can be identified, located, and brought into the process. When heirs are uncooperative or cannot be located, the resolution may require a quiet title action.
FAQs
How does the title company find unknown heirs?
Title professionals use probate records, family history information from the seller, genealogical research services, and other methods to identify potential heirs. The process can be straightforward or complex depending on the family situation.
Can the seller close without including an unknown heir?
If an heir holds a legal ownership interest, their interest must typically be addressed before the title can be transferred free of that claim. The specific requirements depend on state law and the title insurer's underwriting guidelines.