Why curative clauses matter

A title curative clause turns a title report red flag into a defined process rather than an open risk. In practice, these clauses protect buyers, lenders, and sellers by:

  • assigning responsibility for resolving defects (seller, buyer, or third party);
  • setting timing and proof standards so the closing can proceed on schedule; and
  • creating fallback options (escrow holdbacks, seller payoff, or insurance endorsements) if a full cure isn’t possible in time.

In my 15 years helping clients close transactions, I’ve seen clear curative language prevent last‑minute walkaways and costly postponements.

Common title problems curative clauses address

  • unpaid mortgages or tax liens
  • judgment liens and mechanic’s liens
  • errors in deeds or missing signatures
  • undisclosed easements, boundary disputes, or adverse possession claims
  • probate or heirship issues affecting ownership

Typical elements of an effective curative clause

  1. Description of the defect identified in the title commitment or search.
  2. Responsible party and required actions (e.g., payoff, release, deed correction).
  3. Deadline for cure and what constitutes acceptable proof (recorded release, paid invoice, corrected deed).
  4. Remedies if cure fails: postponement, escrow holdback amount, seller credit, or title insurance endorsement.
  5. Allocation of cure costs and authority to obtain third‑party assistance if needed.

How the process usually flows

  1. Title search and issuance of a preliminary title commitment.
  2. Contract includes a curative clause referencing specific exceptions or objections.
  3. Parties work to clear defects by the deadline—title company coordinates payoffs and recordings.
  4. If unresolved, the contract’s fallback (escrow holdback, lender approval, or endorsement) determines whether closing moves forward.

Interaction with title insurance and endorsements

Curative clauses often work together with title insurance. If a defect can’t be fully cured before closing, a lender or buyer may accept an endorsement or expanded coverage instead of a full cure. See our primer on how title insurance affects closings and the role of endorsements for extra coverage for related situations (Title Insurance Endorsements — When Lenders Require Extra Coverage, Title Insurance and Mortgage Closings: A Beginner’s Guide, Title Exceptions: How Minor Title Issues Can Delay Closings).

Practical tips for buyers, sellers, and agents

  • Involve a real estate attorney or title company early to draft precise cure language and timelines (Consumer Financial Protection Bureau; American Bar Association).
  • Be specific: name the exception from the title commitment and state the exact deliverable needed to satisfy it (recorded release, corrected deed, lien payoff).
  • Add an escrow holdback formula if a last‑minute money cure is possible but recording will lag.
  • Confirm who pays cure costs and whether credits will appear on the closing statement.

Common mistakes to avoid

  • Vague cure deadlines (“as soon as possible”) instead of fixed calendar dates.
  • Failing to define acceptable proof of cure (recording numbers, lien satisfactions).
  • Relying solely on title insurance without addressing curable recorded defects that can delay funding.

Short FAQs

  • If the issue isn’t resolved, closing can be delayed, canceled, or proceed with an escrow holdback or insurance endorsement as the contract allows.
  • Curative clauses are not legally required, but they are best practice when title exceptions exist.
  • Lenders may refuse to fund without a cure or acceptable collateral (endorsement or escrow).

Sources and further reading

  • American Bar Association (guidance on title matters and contract drafting)
  • Consumer Financial Protection Bureau (closing and settlement rules and best practices)

Professional disclaimer: This article is educational and does not constitute legal or title advice. For guidance tailored to your transaction, consult a licensed real estate attorney or a licensed title agent.

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(Authority links: American Bar Association, Consumer Financial Protection Bureau.)