Why title problems matter

Title issues interrupt the closing because mortgage lenders need assurance they’re taking a valid, enforceable security interest in the property. If a title search finds anything that might challenge ownership or create a prior claim—like unpaid taxes, judgments, or unrecorded contractor liens—the lender will usually refuse to fund until the issue is cleared or protected by title insurance.

Common title issues that delay closings

  • Unpaid property taxes or tax liens. Federal or local tax liens must be released or subordinated before closing (see IRS guidance on tax liens).
  • Judgments and collection liens against the seller.
  • Mechanic’s or contractor liens recorded after work was done but before closing.
  • Unknown heirs or probate gaps that challenge ownership.
  • Recording errors or incorrect legal descriptions.
  • Easements, use agreements, or covenants not disclosed on the preliminary report.

How long do title delays take?

  • Minor issues (misspelled name, small reconveyance) — often resolved in days.
  • Typical lien payoffs or release requests — 1–3 weeks depending on third-party responsiveness.
  • Complex ownership claims or probate/heir disputes — weeks to months; sometimes litigation is required.

In my practice, a contractor’s $5,000 lien found days before closing typically delayed funding by about two weeks while we negotiated removal and confirmed payoff. Faster resolution usually depends on prompt communication from the seller, lender, title company, and any claimant.

Practical steps to prevent or shorten delays

  1. Order an early title search and review the preliminary title report as soon as your offer is accepted. Catching defects early gives time to cure them before the scheduled closing.
  2. Buy lender and owner title insurance. Lender policies are nearly always required; owner policies protect you from post-closing claims. For basics, see our glossary on understanding mortgage title insurance.
  3. Ask for seller payoffs in writing. Require the seller to clear known liens or escrow funds to pay outstanding obligations at closing.
  4. Use curative language or escrow holdbacks. Lenders sometimes allow funds to be held in escrow until a specific title defect is cured—ask your lender or title company about approved curative clauses.
  5. Hire a real estate attorney for disputed heirs, boundary disputes, or unusual encumbrances. Legal resolution may be the fastest path when parties won’t cooperate.
  6. Verify recording details. After closing, confirm that the deed and mortgage are recorded correctly with the county recorder.

What the title company and lender will do

The title company typically conducts the search and issues the preliminary report noting exceptions. Lenders expect either: (a) documented releases/payoffs for all prior liens, or (b) a lender’s title insurance policy with endorsements covering the lender’s risk. Title companies also handle many curative tasks, such as coordinating payoff demands and filing corrective affidavits.

Costs and who pays

  • Title insurance premiums are usually a one-time charge at closing (amounts vary by state and loan size).
  • Legal or curative costs (attorney fees, probate filings, subordination requests) are additional and often fall to the seller, but responsibility depends on the purchase contract and local practice.

When you need an attorney versus when the title company can help

  • Use the title company for standard curative steps: ordering payoff statements, filing releases, correcting recording clerical errors.
  • Hire a real estate attorney when a claim involves heirship, claims of adverse possession, complex boundary disputes, or when litigation may be required to quiet title.

Authoritative sources and further reading

  • Consumer Financial Protection Bureau, “Title Insurance” (consumerfinance.gov) — practical overview of title insurance and why lenders require it.
  • IRS, “Tax Liens” (irs.gov) — guidance on federal tax liens and priorities.
  • American Land Title Association (ALTA.org) — industry guidance on title searches and curative practices.

Internal resources

  • Learn more about how title insurance affects closings: Understanding Mortgage Title Insurance and Why It Matters (finhelp.io).
  • For common curative measures, see Title Issues That Commonly Delay Closings and How to Fix Them (finhelp.io) and Title Curative Clauses: Fixing Problems Before Closing (finhelp.io).

Professional disclaimer

This article is educational and reflects common industry practices as of 2025. It is not legal advice. Consult a licensed real estate attorney or a qualified title professional for guidance tailored to your transaction.