Buying or selling a home is both exciting and stressful. Buyers, in particular, have a lot of hoops to jump through to get approved for a mortgage loan.
But another stressor is finding title issues that delay the closing of a property. This is a headache for the buyer because you’re ready to close, but it’s also a headache for the seller who’s also ready to close.
So, what common title issues cause these hang ups? Here are four.
So, what common title issues cause these hang ups? Here are four.
Clerical
Real estate properties have a detailed record of all transactions and ownership changes related to the property. These records are subject to human error. Filing errors or mistakes can accidentally be entered into public record which can lead inaccuracies in the chain of title.
Errors can be something as minor as a typo or as significant as an error that impacts the validity of the title. What’s more, these mistakes can carry over from one sale to another before it’s caught. That’s why a thorough title search by a reputable title company is important.
Here at Lilly Title & Settlement, we identify and correct recorded such errors before closing so they don’t continue to be a problem.
Errors can be something as minor as a typo or as significant as an error that impacts the validity of the title. What’s more, these mistakes can carry over from one sale to another before it’s caught. That’s why a thorough title search by a reputable title company is important.
Here at Lilly Title & Settlement, we identify and correct recorded such errors before closing so they don’t continue to be a problem.
Illegal Deeds and Title Defects
When previous owners of a property fail to disclose or resolve liens, judgments, or any other claim against the property, the property cannot be conveyed to the new owner. That’s why homeowner’s title insurance can protect you from costly legal action as well as any financial losses that could results from these issues.
Incomplete or Missing Documents
At Lilly Title & Settlement, we perform thorough title searches (we’re obsessed with legal details!) on behalf of our clients. This search identifies any missing documents or gaps in the chain of title.
Once they are found, we work diligently to get them resolved before closing. This ensures your chain of title is clear.
Once they are found, we work diligently to get them resolved before closing. This ensures your chain of title is clear.
Problems Stemming from Previous Owner
The owner may have failed to pay property taxes or skipped paying their homeowner’s association fees. This can result in claims or liens against the property, all of which must be resolved by the owner before closing.
With a highly respected title company like Lilly Title & Settlement, we can identify any issues and rectify them before your closing date. What’s more, we offer homeowner’s title insurance to protect you from any potential financial losses from title defects or other unforeseen legal issues.
With a highly respected title company like Lilly Title & Settlement, we can identify any issues and rectify them before your closing date. What’s more, we offer homeowner’s title insurance to protect you from any potential financial losses from title defects or other unforeseen legal issues.
FAQs
What are the most common reasons a closing gets delayed?
- Unresolved title issues
- Financing changes
- Missing documents
- Appraisal problems
- Last minute repairs
Can title issues delay closing?
Absolutely! Unpaid liens, boundary disputes, and errors in public records are just some of the problems that can delay closing. A reputable title company works to resolve these issues to keep the closing date on schedule.
How long does the title search process take?
It can typically take anywhere from a few days to a week. It all depends on the property’s history and local records. Older properties or complex owner histories may take longer to ensure accuracy.
What happens if a title issue is found right before the closing date?
If a title issue is found late in the process, Lilly Title & Settlement will work with all parties involved, e.g., sellers, lenders, and attorneys. Sometimes, closing may be delayed until the issue is cleared to protect all parties involved.
At Lilly Title & Settlement, we’re obsessed with legal details! Our commitment is to see that the closing benefits all parties with a fair, unbiased process that protects everyone. Learn more about us here.
At Lilly Title & Settlement, we’re obsessed with legal details! Our commitment is to see that the closing benefits all parties with a fair, unbiased process that protects everyone. Learn more about us here.
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