Common title issues that cause delays

  • Liens: unpaid contractor bills, judgment liens, tax liens (federal or state) that attach to the property and must be paid or subordinated. See IRS guidance on federal tax liens for details: https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien
  • Unreleased mortgages: previous loans that weren’t properly released or recorded by the prior lender.
  • Clerical or legal description errors: incorrect parcel numbers, misspelled names, or wrong lot descriptions in public records.
  • Ownership disputes: competing heir claims, divorce splits, or missing spouse consents.
  • Boundary and easement issues: recorded easements or unclear boundary lines that affect marketability.

Why lenders, title companies, and buyers care

Lenders need clear, marketable title to secure their mortgage. Title defects increase lender risk and can prevent underwriting or cause a funding hold until the defect is cured or insured. Title insurance reduces but does not eliminate the need to fix many defects before funding (Consumer Financial Protection Bureau: https://www.consumerfinance.gov/consumer-tools/title-insurance/).

Quick fixes and who does them (actionable steps)

  1. Get the title exception report early
  • Order a preliminary title report as soon as the purchase agreement is signed. Review exceptions with your title officer.
  1. Resolve liens and judgments
  • Request payoff statements from lienholders and obtain a written release or lien satisfaction to be recorded. For federal tax liens, request a Certificate of Release from the IRS after payment or a discharge/subordination if only a portion of the lien attaches to the property (IRS: https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien).
  • If payoff isn’t possible before closing, negotiate an escrow holdback or lender-approved payoff at closing.
  1. Correct clerical errors
  • File corrective documents (corrective deed, affidavit of scrivener’s error, or corrected mortgage release) with the county recorder. Title companies commonly prepare these and can often fast-track recording.
  1. Prove or quiet title for disputed ownership
  • Collect deeds, probate records, affidavits of heirship, or releases from claimed owners. If claims persist, a quiet title action through the courts may be required — this can take months.
  1. Use title insurance and escrow tools
  • Obtain owner and lender title policies; discuss with the title company which exceptions can be insured versus which must be cleared. Escrow holdbacks and special endorsements are often effective solutions for minor issues.
  1. When to involve an attorney
  • Complex disputes (heirship, forged documents, boundary lawsuits) or contested tax and judgment liens should involve a real estate attorney. They can file quiet title actions, negotiate subordinations, or prepare court documents.

Expected timelines and realistic expectations

  • Clerical fixes and releases: days to a few weeks depending on county recording speeds.
  • Mortgage payoff documentation from small lienholders: typically days to two weeks.
  • IRS and state tax lien resolutions or subordination: several weeks to months depending on agency processing.
  • Quiet title or contested ownership litigation: several months to a year.

Preventive checklist (before listing or applying for a mortgage)

  • Order a preemptive title search.
  • Gather prior deed(s), mortgage payoff confirmation, and any settlement paperwork.
  • Resolve known contractor or HOA balances.
  • Disclose known encumbrances to the buyer and lender early.

Practical examples from practice

In my 15 years advising buyers and sellers, the most common preventable delay comes from overlooked contractor or HOA liens. A pre-listing title check and asking the seller for a recent lien search often saves two to four weeks at closing. For tax liens, I’ve had clients use a IRS lien subordination or a payoff escrow at closing to keep transactions moving while full resolution was scheduled.

When a delay may be unavoidable

If competing heirs contest ownership, or if a forged deed is discovered, lenders often refuse to fund until a court resolves the matter. That can push closing beyond normal timelines and may require re-negotiation of loan terms or an extension of contingency deadlines.

Helpful resources and internal articles

Final tips

  • Communicate: keep lenders, title officers, and agents updated daily when issues appear.
  • Document everything: get payoff letters, lien releases, and recorded corrections in writing.
  • Consider contingencies: ask for closing date flexibility or escrow remedies in the sales contract.

Professional disclaimer: This article is educational and does not replace legal or tax advice. For case-specific action, consult a licensed real estate attorney, your title company, or your lender.

Author note: The guidance above reflects common practice and my 15 years helping clients navigate title-related delays.