Property title issues are one of the most common reasons for delayed closings during a real estate transaction. A property title is a legal document proving homeownership, outlining boundary lines, legal rights, and any existing liens. Before you can close on a new home, the title must be clear of defects. If not addressed early, title issues—ranging from clerical errors to disputed ownership—can disrupt or even cancel the sale.

What Is a Property Title?

A property title establishes legal ownership of a home and includes crucial information such as:

Title Component	Purpose
Ownership Rights	Identifies the rightful owner(s)
Legal Description	Defines boundary lines and lot details
Liens or Claims	Lists unpaid debts tied to the property

Before a property can transfer ownership, the title must be free from defects. If problems exist, they must be resolved before closing.

5 Common Property Title Issues That Can Delay Closing

Issue	Description
Public Record Errors	Misspelled names, missing signatures, or incorrect legal descriptions can delay closing until corrected.
Unpaid Liens	Tax debts, child support, or contractor bills can lead to a lien, giving third parties a claim on the property.
Boundary Disputes	Neighbors may dispute property lines or claim portions of land. A survey is often needed to resolve this.
Fraudulent or Invalid Deeds	Past transactions signed by unauthorized individuals or involving forgery can void ownership.
Unknown or Missing Heirs	Inherited properties may face claims from heirs not previously identified, stalling the transaction.

How Title Problems Are Discovered and Resolved

To protect both buyers and lenders, several measures are taken during the homebuying process:

Title Search

Title companies perform a comprehensive review of public records to confirm ownership, identify liens, and check for legal issues.

Title Insurance

Lenders require title insurance to protect their investment. Buyers are encouraged to purchase an owner’s policy to safeguard against future claims.

Legal Assistance

If a defect arises, a real estate attorney may be needed to resolve issues like contested wills, boundary disputes, or the re-filing of documents.

What About Open Permits or Missing Surveys?

Open permits do not usually appear on a title report. Buyers should ask for a permit history search to check for unresolved work—like unfinalized electrical or structural permits—that could delay closing or affect future renovations.

If no survey exists or boundary concerns arise, ordering a professional property survey ensures clarity and avoids future disputes.

Why You Should Always Get Title Insurance

Although some see it as an unnecessary cost, title insurance protects you from costly legal battles if problems—such as a hidden lien or undisclosed heir—surface after closing. It’s a one-time purchase that offers long-term protection.

Tips to Prevent Title-Related Delays at Closing

Stay proactive during the transaction to ensure a smooth closing:

• Choose a reputable title company or closing attorney
• Ask early about permit history and property surveys
• Respond promptly to any title defects identified
• Purchase an owner’s title insurance policy for added protection

Avoid Surprises—Close with Confidence

At Loan Pronto, we simplify the homebuying process by offering more than just mortgage expertise. Our in-house sister company, Title Pronto, provides end-to-end title services, ensuring a smooth and secure closing experience. From title searches to insurance and legal coordination, Title Pronto helps you move forward with clarity and peace of mind.

Have questions about your property title? Let Loan Pronto and Title Pronto handle it—so you can focus on getting the keys to your new home.

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