Quick Answer
If the legal description is wrong, investigate before closing. Depending on the nature of the error, solutions may include correcting the commitment, recording a corrective deed, ordering a new survey, revising transaction documents, or seeking underwriting and legal guidance.
Finding an error in the legal description on your title commitment can be unsettling, but it is a problem that can often be resolved before closing. The key is to identify the issue early and work with the right professionals to address it.
Common Legal Description Problems
- Mismatched description: The description on the commitment does not match the purchase contract or the deed
- Outdated description: The description reflects a prior subdivision or lot configuration that no longer exists
- Missing parcel: The description omits a portion of the property the buyer expects to receive
- Typographical errors: Mistakes in lot numbers, block numbers, bearings, or distances
- Incorrect reference: References the wrong plat, survey, or document
What Happens First
When a legal description issue is identified, the title company investigates whether the description on the commitment is correct based on the public records. If the error is in the commitment itself (the title company entered it incorrectly), a corrected commitment may be issued.
Possible Solutions
Correct the Commitment
If the title company made an error transferring the legal description from the records to the commitment, the commitment can typically be corrected without significant delay.
Corrective Deed
If the error is in a prior deed in the chain of title, a corrective deed from the party that made the error may resolve the issue. For example, if a prior deed incorrectly described the property, the grantor in that deed may execute a corrective deed.
New Survey
If the legal description is ambiguous or does not match the physical property, a new survey may be needed to establish the correct boundaries. The survey can then be used to prepare an updated legal description.
Revise Transaction Documents
If the legal description was wrong in the purchase contract, the contract may need to be amended to reference the correct property description.
Underwriting and Legal Guidance
For complex legal description issues, the title company's underwriting department and a real estate attorney may need to be involved to determine the appropriate solution.
Can You Close Anyway
Whether the transaction can close with a legal description error depends on the nature and severity of the issue. Minor typographical errors may be corrected before or at closing. More significant discrepancies may require resolution before closing can occur. Your title company and attorney can advise on the specific situation.
For more on legal descriptions and how to review them, read What Does the Legal Description Tell You? and Why Should Buyers Review the Legal Description?
Key Takeaway
A wrong legal description can be corrected in most cases, but it requires timely action. Identify the issue early, work with your title company and attorney, and do not assume the problem will resolve itself. The sooner it is addressed, the less likely it is to delay closing.
FAQs
Who pays for correcting a legal description error?
It depends on who made the error. If the title company entered it incorrectly, the title company typically corrects it at no charge. If the error originates from a prior deed or document, the cost of a corrective deed may fall on the party that caused the error or as negotiated in the transaction.
Does a legal description error affect title insurance coverage?
Yes. The policy insures the property described in the legal description. If the description is wrong, the policy may not cover the correct property. This is why correcting the description before closing is important.