Common Title Issues Uncovered in Real Estate Transactions

Common Title Issues Uncovered in Real Estate Transactions

Common Title Issues Uncovered in Real Estate Transactions
By Real Estate Law Corporation

Real estate transactions are intricate affairs, where numerous details must align to ensure a smooth process. Among these details, perhaps none are as crucial as the title review. The title is a legal document that establishes ownership of a property. A clean, clear title is essential for a successful real estate transaction. However, in practice, common title issues can arise and potentially derail even the most well-planned deals.

At Real Estate Law Corporation, we understand the significance of identifying and addressing these issues promptly. In this article, we will explore some of the most common title issues encountered in real estate transactions and why a comprehensive title review is essential in safeguarding your investment.

1. Unpaid Liens and Mortgages

One of the most frequent title issues involves unpaid liens or mortgages on the property. These can arise due to unpaid property taxes, unpaid construction bills, or outstanding debts secured by the property. Such encumbrances can hinder the transfer of a clear title and may need to be satisfied before the transaction can proceed. Unresolved liens can become the buyer’s responsibility or result in disputes between buyers and sellers.

2. Errors in Public Records

Public records are the foundation of title searches, but they are not infallible. Clerical errors, omissions, or inaccuracies in public records can create significant title problems. This could include misspelled names, incorrect legal descriptions, or the failure to record a crucial document. These errors may lead to disputes over property boundaries, ownership, or other legal matters.

3. Boundary Disputes

Boundary disputes can arise when the legal description of a property is unclear or when neighboring property owners have differing interpretations of their property lines. Such disputes can complicate property transactions, delay closings, and potentially result in costly legal battles. It’s crucial to resolve boundary issues before proceeding with a real estate transaction.

4. Forged or Fraudulent Documents

Instances of forgery or fraudulent documents in the chain of title can cast doubt on the validity of a property’s ownership history. These issues can be particularly challenging to detect without a thorough title search. In some cases, unsuspecting buyers may find themselves in possession of a property with a clouded title due to fraudulent activities by previous owners.

5. Easements and Encroachments

Easements are legal rights that allow third parties (other than the property owner) to use the property for specific purposes, such as access to utilities or roadways. Encroachments, on the other hand, occur when a portion of one property crosses the boundary onto another. Both easements and encroachments can create complications for real estate transactions and may require negotiation or resolution.

6. Unreleased Previous Mortgages

When a property changes ownership, any existing mortgages should be properly released or satisfied to clear the title. Failing to do so can result in a clouded title, as the previous owner’s mortgage may still be recorded against the property. It’s crucial to ensure that all previous mortgages are properly released during the transaction.

7. Judgment Liens and Bankruptcy

If a property owner has unpaid judgments or has filed for bankruptcy, these legal actions can affect the property’s title. Judgment liens can attach to the property and must be satisfied before a clear title can be transferred. Bankruptcy proceedings can also impact the transfer of property and require specialized legal attention.

8. Missing Heirs or Unknown Ownership Interests

In some cases, a property’s title history may reveal missing heirs or unknown ownership interests, particularly if a property has been in the same family for generations or has a complex ownership history. Identifying and addressing these interests can be crucial for establishing a clear title.

9. Unresolved Legal Disputes

If a property is involved in an ongoing legal dispute, such as a divorce settlement, inheritance dispute, or other litigation, it can create significant title issues. Resolving these disputes and ensuring a clear title is essential before proceeding with a transaction.

The Role of Real Estate Law Corporation

At Real Estate Law Corporation, we recognize that navigating these common title issues requires expertise, attention to detail, and a deep understanding of real estate law. Here’s how our experienced team can assist you:

1. Thorough Title Research: We conduct meticulous title searches, examining historical records and documents to identify potential issues early in the process.

2. Issue Resolution: If title issues are discovered, we have the negotiation skills and legal expertise to address and resolve them efficiently, ensuring a smooth transaction.

3. Title Insurance: We can guide you through the process of obtaining title insurance, providing an extra layer of protection for your investment.

4. Legal Compliance: Real estate transactions involve complex legal requirements. We ensure that every aspect of the title review and transaction adheres to local, state, and federal laws and regulations.


In the complex world of real estate transactions, title issues are not uncommon. However, with the assistance of a trusted legal partner like Real Estate Law Corporation, these issues can be identified and addressed promptly, safeguarding your investment and ensuring a successful transaction.

Whether you are a buyer, seller, or lender, understanding the common title issues in real estate transactions and the importance of a comprehensive title review is paramount. By proactively addressing these issues, you can protect your interests and navigate the real estate market with confidence.

Whether you’re a property owner, investor, or business owner, Real Estate Law Corporation™ is your trusted partner on the path to legal success. Contact us today to embark on a journey of exceptional legal support. Our team of seasoned attorneys brings decades of experience to every case, demonstrating a profound understanding of real estate law, transactions, litigation, business intricacies, and estate planning. With a proven record of success, our portfolio is adorned with numerous landmark cases that stand as a testament to our dedication, expertise, and commitment to achieving favorable outcomes for our clients.