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Buying a home is a thrilling adventure. You've found the perfect place, imagined your life there, and are ready to make it yours. But just when you're about to cross the finish line, unexpected problems with the property's title can bring everything to a halt.​

A property's title is like its birth certificate—it proves who owns it. If there are issues with the title, it can delay or even cancel your home purchase. Understanding these potential pitfalls is crucial to ensure a smooth closing process.​

This guide explores common property title issues that can disrupt your closing and how to protect yourself from them.​

What Is a Property Title?

A property title is a legal document that proves who owns a piece of real estate. It includes details about the property, such as its boundaries and any restrictions or claims against it. When you buy a home, you want a "clear title," meaning there are no legal issues that could affect your ownership.​

Common Property Title Issues

1. Errors in Public Records

Sometimes, mistakes happen when documents are filed with the government. These errors can include misspelled names, incorrect property descriptions, or missing information. Even small mistakes can cause big problems during closing. For example, if your name is spelled incorrectly on the deed, it could delay the transfer of ownership.​

2. Liens on the Property

A lien is a legal claim against a property for unpaid debts. Common types of liens include:​

• Mortgage liens: If the previous owner didn't pay their mortgage, the lender can claim the property.
  
  

• Tax liens: Unpaid property taxes can result in the government placing a lien on the property.
  
  

• Mechanic's liens: If a contractor did work on the property and wasn't paid, they can file a lien.​

Liens must be resolved before the property can be sold, which can delay or prevent closing.​

3. Boundary Disputes

Unclear property boundaries can lead to disputes with neighbors. If a fence, driveway, or structure encroaches on another property, legal action may be necessary to resolve the issue. This is particularly important in densely populated areas where properties are close together.​

4. Illegal Deeds

If a previous deed was executed by someone not legally authorized—such as a minor or someone of unsound mind—it can affect the validity of the title. These issues may not surface until a thorough title search is conducted.​

5. Unknown or Missing Heirs

When a property owner dies without a clear will, heirs may come forward years later to claim ownership. This can lead to disputes and legal challenges, complicating the sale of the property.​

6. Forgery and Fraud

Fraudulent documents, forged signatures, or impersonation can all cloud a property's title. These issues can be difficult to detect and may require extensive legal work to resolve.​

7. Undiscovered Encumbrances

Encumbrances are claims or restrictions on a property, such as easements or covenants. These may limit how you can use the property and might not be discovered until a title search is performed.​

How to Protect Yourself from Title Issues

To safeguard your home purchase:​

• Hire a real estate lawyer: They can conduct a thorough title search to uncover any issues.
  
  

• Purchase title insurance: This protects you from financial loss due to title defects.
  
  

• Review all documents carefully: Ensure all information is accurate and complete.​

The Bottom Line

Property title issues can be complex and daunting, but with the right guidance, you can navigate them successfully. Understanding these common problems and taking proactive steps can help ensure a smooth closing process.

Need expert assistance? The Johnson Team is renowned for our market knowledge and commitment to client satisfaction. Whether you're buying or selling, our experienced agents will work diligently to meet and exceed your expectations. Contact us today to start your real estate journey with confidence.​