Here are common problems with a property title, with clear examples for each. These are issues that can affect ownership, sale, or financing of real estate.
1. Liens on the Property
Example:
A previous owner failed to pay a contractor for renovations. The contractor filed a mechanic’s lien, which must be cleared before the property can be sold.
2. Unpaid Property Taxes
Example:
The seller owes two years of back property taxes. The local government has a tax lien against the property.
3. Errors in Public Records
Example:
A deed misspells the owner’s name or lists the wrong lot number, creating confusion about who legally owns the property.
4. Unknown or Missing Heirs
Example:
An owner dies without a will. Years later, a previously unknown heir appears and claims partial ownership of the property.
5. Boundary Disputes
Example:
A neighbor claims part of the driveway actually belongs to them based on an old survey that conflicts with the current one.
6. Easements
Example:
The utility company has a legal right to access part of the backyard to maintain power lines, limiting how the owner can use that land.
7. Encroachments
Example:
A garage or fence was built partially on a neighbor’s land, or vice versa.
8. Fraud or Forgery
Example:
Someone forged the owner’s signature on a deed and transferred the property illegally.
9. Improperly Recorded Documents
Example:
A mortgage was paid off, but the release was never recorded, making it appear the loan is still outstanding.
10. Judgments Against the Owner
Example:
The owner lost a lawsuit, and a court judgment is attached to the property as a lien.
11. Illegal Deeds or Transfers
Example:
A property was sold by someone who did not have legal authority (such as a co-owner selling without consent).
12. Zoning or Use Restrictions
Example:
The title reveals restrictions preventing the property from being used for commercial purposes, even though the buyer intended to open a business.
Why These Matter
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Can delay or cancel a sale
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Can prevent mortgage approval
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May require legal action or title insurance claims
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