Understanding the importance of a clear chain of title is key to avoiding delays at closing. Common title defects—like unpaid liens, public record errors, and undiscovered heirs—can stall or derail home purchases. These issues impact legal ownership and must be resolved before the property can be transferred. Buyers, sellers, and agents can prevent problems by reviewing title reports early, verifying documents, and working with trusted professionals to ensure a clean title before closing.
In this comprehensive guide, we’ll cover:
- What title defects are and why they matter
- The most common types that delay closings
- Real-life examples and timelines
- How to detect and resolve issues before they escalate
- Actionable tips for buyers, sellers, and agents
What Is a Title Defect?
A title defect—often referred to as a “cloud on title”—is any legal issue, encumbrance, or error that affects the ownership status or marketability of a property. If the title is not “clear,” it cannot legally be transferred to a new buyer.
Why It Matters:
When you purchase a home, you want to ensure:
- You legally own the property
- No one else can make a claim on it
- You’re not inheriting debts or disputes from the past
Even a small clerical mistake, like a misspelled name in a deed, can raise red flags and delay the closing process.
Top Title Defects That Cause Closing Delays
Let’s dive into the most frequent title issues—what they are, why they matter, and how they can delay your home closing.
1. Unpaid Liens on the Property
A lien is a legal claim against a property due to unpaid debts. These can be from:
- Mortgage lenders
- Contractors (mechanic’s liens)
- Unpaid taxes or utility bills
- Homeowner association dues
Example:
A previous owner failed to pay a $7,500 roofing bill. The contractor filed a lien that wasn’t discovered until the final title check. Result? A two-week delay until the lien was resolved.
Solution:
Ask your title company to perform a comprehensive lien search early. Address unresolved liens before proceeding.
2. Errors in Public Records
Typos, misfiled paperwork, and outdated legal descriptions are surprisingly common.
Data Point:
According to the American Land Title Association, public record errors account for more than 25% of all title-related closing delays.
Real-Life Scenario:
The legal description on the deed says “Lot 24,” but the property is actually Lot 42. This mistake must be corrected at the county level before closing can proceed.
Solution:
Always review the preliminary title report thoroughly and request corrections immediately.
3. Unreleased Mortgages
Even if a mortgage was paid off, it may not have been formally released by the lender. This creates confusion over whether the lender still holds a claim.
Example:
A seller paid off their second mortgage in 2015, but the lender never recorded the release. The buyer’s title company won’t issue a clean title until the release is filed—delaying closing by 10 days.
Solution:
Ensure all mortgage satisfaction documents are recorded in public records.
4. Undiscovered Heirs and Probate Issues
When a property is inherited, missing heirs or incomplete probate filings can create uncertainty about who legally owns the home.
Example:
A seller inherited a home from their aunt but never completed probate. A distant cousin later claims partial ownership—stalling the sale for over 90 days.
Solution:
For inherited properties, request probate documents, death certificates, and confirm legal authority to sell.
5. Forgery and Fraud in the Chain of Title
If a past deed includes a forged signature, fake identity, or misrepresentation, the transfer is invalid.
Risk Factor:
This is especially common in vacant or distressed properties where fraudsters try to pose as owners.
Solution:
Work with title companies that use enhanced fraud detection tools and verify previous deed transfers carefully.
6. Boundary Disputes and Survey Issues
Disagreements about property lines can delay closings, especially when the legal boundary doesn’t match fences or physical features.
Example:
A neighbor’s garage overlaps your new property by 2 feet. A boundary correction or agreement is required, delaying closing by 3–4 weeks.
Solution:
Get a property survey and match it to the legal description before closing.
Title Defects and Average Delays: Quick Comparison
| Title Issue | Potential Delay |
| Unpaid Liens | 7–14 days |
| Public Record Errors | 5–10 business days |
| Unreleased Mortgages | 7–21 days |
| Missing Heirs/Probate | 30–90 days (or more) |
| Forgery or Title Fraud | Varies – may cancel deal |
| Boundary Disputes | 14–30 days |
Practical Tips to Avoid Title Defects
Here’s how buyers, sellers, and agents can work together to prevent delays.
For Homebuyers:
- Choose a reputable title company
- Purchase owner’s title insurance
- Review your preliminary title report early
- Ask for a survey if property boundaries are unclear
For Home Sellers:
- Pay off and document all outstanding debts
- Provide probate or trust documents for inherited properties
- Resolve HOA or contractor liens before listing
- Verify all names match across documents
For Real Estate Professionals:
- Include a title contingency in contracts
- Stay in close contact with escrow and title officers
- Educate your clients on potential red flags
- Use a checklist to ensure all title documentation is complete
Final Thoughts:
Title defects are more than technical hiccups—they can cost time, money, and peace of mind. But they’re avoidable with the right approach. By understanding the most common title issues, working with trusted professionals, and staying proactive, you can close on time and with confidence.
