Background and why this matters

Title obstacles are one of the most frequent reasons closings slip. A title search or title commitment performed before closing uncovers encumbrances or gaps in the record that can stop lenders from funding and buyers from taking ownership. In my practice, a missed lien release from a previous contractor added two weeks to a closing because the title company wouldn’t insure the property until the lien was removed.

How title problems surface

  • Title search/commitment: performed by a title company or attorney; lists exceptions and clouds on the title.
  • Lender underwriting: lenders require clear title or exceptions they will accept in writing.
  • Buyer/seller disclosures: sometimes reveal unrecorded issues (e.g., easements, boundary disputes).

Common title issues and practical fixes

  • Outstanding liens (mechanics’, judgment, tax liens)

  • Cause: unpaid debts attached to the property.

  • Fix: obtain payoff or lien-release documentation before closing; use escrow holdback only in limited, agreed cases. For federal tax liens, see guidance on release or subordination strategies and work with the IRS or a tax attorney: https://www.irs.gov/ (see “Tax Liens”).

  • Internal link: For complex tax-liens, read our guide on navigating IRS tax liens: “Navigating IRS Tax Liens: Release, Subordination and Effect on Title” (https://finhelp.io/glossary/navigating-irs-tax-liens-release-subordination-and-effect-on-title/).

  • Unclear or disputed ownership (heir claims, probate gaps)

  • Cause: death of an owner without probate, missing deeds, or conflicting conveyances.

  • Fix: obtain a probate order, deed correction, quitclaim from heirs, or a court action to quiet title. Engage a real estate lawyer early.

  • Unrecorded or unexpected easements and rights-of-way

  • Cause: older informal agreements or surveys that reveal neighbor access rights.

  • Fix: negotiate a recorded easement, secure a release, or obtain a survey and resolution. If the easement can’t be fixed quickly, title insurance endorsements or negotiated credits may allow the closing to proceed.

  • Clerical errors and name discrepancies

  • Cause: misspelled names, incorrect legal descriptions, or missing signatures.

  • Fix: corrected deeds, affidavits of identity, and updated record filings. Simple clerical fixes can often be handled in days.

  • Missing lien releases or payoff statements

  • Cause: creditor fails to record release after payoff.

  • Fix: request a formal release or recorded satisfaction; obtain an affidavit and recorded release before closing.

When to use escrow holdbacks, curative clauses, or title insurance

  • Escrow holdback: a portion of proceeds held to allow agreed curative work after closing. This is a short-term tool and should be used with specific deadlines, documented authority, and lender approval.
  • Curative clauses: contract language that assigns responsibility, timelines, and remedies to fix title issues (see our article on title curative clauses).
  • Internal link: Learn more about steps for curing problems before settlement: “Title Curative Clauses: Fixing Problems Before Closing” (https://finhelp.io/glossary/title-curative-clauses-fixing-problems-before-closing/).
  • Title insurance: protects buyer and lender against covered title defects discovered after closing. Ordering an owner’s policy plus the lender’s policy reduces post-closing risk and can be a condition of the loan. See our primer on title insurance basics for why lenders require it.
  • Internal link: “Understanding Title Insurance and Why Lenders Require It” (https://finhelp.io/glossary/understanding-title-insurance-and-why-lenders-require-it/).

Practical checklist to prevent or shorten delays

  1. Order a title search/commitment as early as possible (pre-inspection period).
  2. Request payoff statements and lien searches for judgments, mechanics’, and tax liens.
  3. Ask the seller for recorded deed history and any releases of lien.
  4. Obtain a current survey when boundary or easement issues are possible.
  5. Build curative timelines into the contract and include escrow holdback terms if appropriate.
  6. Confirm lender requirements and title exceptions early—don’t wait for underwriting.
  7. Buy owner’s title insurance and review exceptions; ask for endorsements when needed.

Real-world examples

  • Unrecorded easement: A buyer discovered a neighbor’s driveway access that had never been recorded. The parties negotiated a recorded easement; closing was delayed two weeks while the easement was drafted and recorded.
  • Heir dispute: A property’s deceased owner left no clear probate record. One heir contested the sale. The seller’s attorney opened probate and obtained a court order to transfer title; the closing was delayed a month.

Common mistakes and misconceptions

  • Waiting until the last week to order the title commitment.
  • Assuming a verbal release or payoff is sufficient without a recorded document.
  • Skipping owner’s title insurance because lender coverage “protects the loan” — lender policies protect the lender’s interest, not the owner’s equity.

Frequently asked questions

Q: How long does it take to fix title issues?
A: Simple clerical fixes or recorded lien releases can take days to two weeks; disputes, probate, or litigation can extend to months. Timelines vary by jurisdiction and the parties involved.

Q: Can a closing proceed if there’s a title problem?
A: Sometimes — with express lender approval, escrow holdbacks, curative clauses, and title insurance endorsements. However, many lenders require clear title or acceptable exceptions before funding.

Q: Do I need a lawyer to fix title defects?
A: For complex issues (heir claims, quiet title actions, tax-lien negotiations), hire a real estate attorney. For routine releases and clerical fixes, title companies often handle the work.

Authoritative sources and further reading

Professional disclaimer

This article is educational and based on general best practices and my professional experience. It is not legal advice. For specific situations, consult a qualified real estate attorney or licensed title professional in your state.