Closing day should be simple: sign the papers, hand over the keys, move forward. But for many buyers and sellers, the weeks before closing turn into a scramble to resolve title problems that could have been caught, and fixed, much earlier.
A clean title is the foundation of any real estate transaction. When something is off, lenders won’t fund, insurers won’t issue a policy, and closings get pushed back. Understanding the most common title issues, and why early review matters, can save everyone time, money, and stress.
Here are five frequent culprits behind delayed closings, and how to get ahead of them.
1. Outstanding Liens
A lien gives a creditor a legal claim against a property until a debt is paid. These can come from unpaid contractor bills, HOA dues, tax obligations, or a prior owner’s debts never cleared from the record. They don’t always show up where you’d expect; a property can look clean on paper and still carry a lien from years earlier.
Why it delays closing: Lenders won’t finance a purchase until liens are resolved, and insurers won’t insure over them without a plan to clear or bond around the debt.
How to catch it early: Order a title search as soon as a property goes under contract so any payoff or release paperwork has time to process.
2. Boundary and Survey Discrepancies
Boundary lines on paper don’t always match what’s on the ground. Fences in the wrong place, driveways crossing property lines, or additions that ignore setback requirements can create disputes that surface only once a new survey is ordered.
Why it delays closing: If a survey reveals an encroachment, lenders and title companies often want it resolved, or addressed in the title commitment, before moving forward.
How to catch it early: Order a current survey early rather than relying on an old one, leaving time to negotiate an easement or adjust the boundary if needed.
3. Unresolved Easement Conflicts
Easements grant someone other than the owner the right to use part of a property, for a shared driveway, utility lines, or landlocked access. Problems arise when an easement is unrecorded, poorly drafted, or conflicts with how the property is actually used.
Why it delays closing: An ambiguous or disputed easement creates uncertainty about what a buyer is purchasing, often prompting further negotiation before closing.
How to catch it early: Have an attorney compare recorded easements against the property’s actual layout, not just the legal description, to catch conflicts a document review alone might miss.
4. Errors in the Chain of Title
The “chain of title” traces ownership back through history. A break in that chain, an incorrect legal description, a name misspelling, or an heir never properly accounted for can cloud title even after years of uneventful ownership.
Why it delays closing: Title insurers require a clear chain of ownership before issuing a policy. Gaps often require corrective deeds, affidavits, or court action.
How to catch it early: A thorough title search should go back further than the minimum required period, especially for older properties or those passed through multiple owners or estates.
5. Unreleased Mortgages or Deeds of Trust
It’s common for a prior mortgage to still appear on record after payoff, simply because the lender never filed the release. This happens often with older loans, refinances, or lenders that have since merged or closed.
Why it delays closing: An unreleased mortgage looks like an active lien on paper. Title companies will flag it and require proof of payoff and release before insuring the title.
How to catch it early: If a property has been refinanced or sold before, request payoff and release documentation from the seller right away.
The Bottom Line
Most title issues aren’t deal-breakers, but they are time-sensitive. The best way to avoid a delayed closing is to start the title review process early and involve an attorney who can spot problems before they become obstacles.
At McKenzie Collier, our attorneys take a hands-on, detail-driven approach to real estate transactions, reviewing title work closely so surprises are caught early and resolved efficiently. If you’re preparing to buy, sell, or refinance property, reach out to our team to keep your closing on track.
This article is provided for general informational purposes only and does not constitute legal advice. Please consult us regarding your specific situation.
To learn more, contact McKenzie Collier PLLC by visiting mckenziecollier.net or calling (662) 238-0707.
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