Top Title Issues That Delay Closings (and How to Avoid Them)
Buying or selling a home is exciting—until an unexpected title issue stalls the closing table. Even the most prepared buyer, seller, or agent can get blindsided by problems hiding deep within the property’s history. Title issues aren’t rare; they’re one of the most common reasons a closing gets delayed or, in worst cases, canceled altogether.
The good news? Most title problems can be prevented or resolved early when you know what to look for. Whether you’re a buyer, seller, lender, or real estate professional, understanding these common title obstacles helps ensure a smooth, stress-free closing. Below are the top title issues that delay closings—and practical steps to avoid them.
1. Unpaid Liens and Judgments
One of the most common title complications arises from unpaid debts tied to the property or the seller. These may include:
- Mortgage liens
- Tax liens
- HOA liens
- Mechanic’s liens (contractor or repair work not fully paid)
- Judgments against the seller
Even if the seller wasn’t aware of them, these liens must be paid off before the title can transfer cleanly. Buyers cannot legally take ownership until the title is free of encumbrances.
How to Avoid This Issue
- Order a preliminary title search early. Don’t wait until the week of closing.
- Encourage sellers to pull a personal credit check if they suspect past financial issues.
- Provide payoff information early—especially for multiple mortgages or HELOCs.
- Sellers should resolve disputes with contractors before listing, to avoid mechanics’ liens surfacing mid-transaction.
2. Errors in Public Records
Clerical errors happen more often than you think. Something as small as a misspelled name, an incorrect legal description, a wrong parcel number, or an outdated recording can cause delays, because the title company must correct the record before issuing a clean title policy.
These errors typically occur in older documents—sometimes decades old—and aren’t discovered until a title examiner reviews the chain of ownership.
How to Avoid This Issue
- Use a reputable title company that thoroughly checks legal descriptions and recording accuracy.
- Encourage sellers to gather old deeds, surveys, and documentation before the listing goes live.
- Submit all documents with accurate spellings, signatures, and notarizations to prevent new errors from being added to the chain.
3. Unknown Heirs or Ownership Disputes
Properties that were inherited—especially those passed down informally—carry a high risk of ownership disputes. Title can get clouded when:
- A deceased owner’s estate was never properly probated.
- Unknown or missing heirs later come forward claiming interest.
- One heir sells without the others’ permission.
- A past divorce decree was never recorded.
These issues can stop a closing in its tracks because the true legal owner must be identified and any disputed interests resolved.
How to Avoid This Issue
- Always verify probate completion for inherited properties.
- If multiple heirs are involved, ensure they all sign the required documents upfront.
- Provide the title with death certificates, wills, and probate orders early in the process.
- Avoid quick seller deadlines—estate-related closings often need extra time.
4. Boundary and Survey Discrepancies
Survey issues arise when the legal property lines don’t match the actual physical boundaries. Common problems include:
- A fence or driveway built over the property line
- Neighboring structures encroaching onto the property
- Outdated or incomplete surveys
- Disputes over shared access, easements, or right-of-way
If the survey doesn’t match the legal description or shows an encroachment, lenders typically won’t approve the transaction until it is resolved.
How to Avoid This Issue
- Buyers should request a new survey, especially for older homes with additions or fencing.
- Sellers should disclose known encroachments or easements early.
- Consult with the title company or attorney if you suspect disputes with neighbors.
- Address shared driveways or access agreements before signing a purchase contract.
5. Unreleased Mortgages
Sometimes old mortgages appear on the record even though they were paid off. This usually happens when:
- A prior lender failed to file a satisfaction or discharge.
- The lender merged, closed, or transferred ownership.
- Paperwork from older refinances was never recorded.
The title company must track down documentation proving the payoff, which can take days—or, in complicated cases, weeks.
How to Avoid This Issue
- Sellers should locate payoff letters, HUD-1 forms, and satisfaction documents from previous loans.
- If the original lender no longer exists, start the research immediately—you’ll need successor information.
- Work with a title company experienced in locating old lender records.
6. Forged or Fraudulent Documents
Unfortunately, real estate fraud is on the rise. In some cases, documents in the chain of title may have been forged—such as fraudulent deeds, falsified identity signatures, or unauthorized transfers. These issues can cloud ownership and stall closing while attorneys and title underwriters investigate.
How to Avoid This Issue
- Choose a title company with strong fraud-prevention protocols.
- Use secure communication for wiring and document transfer.
- Verify seller identity thoroughly—especially in vacant properties or investor-owned homes.
- Agents should confirm seller authorization when dealing with LLCs or trusts.
7. Missing or Unrecorded Easements
Easements grant someone else the right to use a portion of the property—for utilities, driveways, shared access, etc. When easements are missing, unrecorded, or unclear, lenders may delay closing to confirm who legally has access to the property.
How to Avoid This Issue
- Review the title commitment’s Schedule B exceptions to check for easements.
- Order a survey that maps utility or ingress/egress easements.
- Have sellers provide private road or shared driveway agreements before signing a contract.
- Clarify any non-recorded agreements in writing to protect all parties.
8. Title Chain Gaps
A “gap” in the title chain means a missing transfer at some point in the chain of ownership. For example:
- A deed was never recorded.
- A transfer was done incorrectly.
- A foreclosure or tax sale wasn’t completed properly.
This prevents the title examiner from confirming clear legal ownership.
How to Avoid This Issue
- Let the title company investigate gaps early in the commitment phase.
- Sellers should provide copies of any missing deeds they may have in their personal files.
- Avoid fast closings when selling distressed or previously foreclosed properties, as they often need extra verification.
Final Thoughts: Preparation Prevents Delays
Title issues can feel overwhelming, but most delays are avoidable with proactive steps. By ordering title work early, providing complete documentation, and working with experienced professionals, you can eliminate surprises long before closing day arrives.
When buyers, sellers, real estate agents, lenders, and title companies communicate clearly from day one, the closing process becomes faster, safer, and far less stressful. A clean title isn’t just a requirement—it’s the foundation of a smooth real estate transaction.
Learn more about our comprehensive title insurance services here.
Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!
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