Common Title Problems That Can Delay Closing: A First-Time Home Buyer’s Guide & Resource

Summary:

This guide helps homebuyers understand common title problems that can delay a real estate closing. It explains why these issues occur, how they can impact a real estate transaction, and what steps are typically taken to resolve them before closing day. Your title company can work proactively to identify and address title concerns, helping make the closing process as smooth as possible.

Buying your home is exciting. Whether it’s your first home, a second property, or moving to a new location, the last thing you want is an unexpected delay right before closing day. A common cause of delayed real estate closings is a title issue. While many buyers assume the closing process is simply signing paperwork and receiving the keys, there is an important step that happens behind the scenes first: verifying that the property title is clear and ready to transfer.

At MidCity Title, our team works with buyers, sellers, lenders, and real estate agents throughout the Baton Rouge and New Orleans areas to identify and resolve title issues before they become major problems and headaches for our clients. In this resource for common title problems, our title experts explain some of the most common title problems that can delay closing. Learn what they mean and how title professionals help keep your property purchase on track.

What Is a Property Title?

Let’s start with the basics. A property title represents legal ownership of a home or piece of real estate. Before a property can be sold, a title search is performed to review public records and verify that the seller has the legal right to transfer ownership.

During the title search process, title professionals look for anything that could affect ownership rights, create legal disputes, or prevent the property from being sold. While many transactions move smoothly, some uncover title issues that must be addressed before closing can occur.

Don’t miss our glossary page that defines common real estate terms. 

Common Title Problems That Can Delay Closing

Now that we know what a property title is, let’s dive into some common problems our MidCity Title team has run into when handling real estate transactions. This is not a comprehensive list, but it highlights 7 of the most common title problems for New Orleans and Baton Rouge buyers.

1. Outstanding Liens

One of the most common title problems involves liens attached to the property. A lien is a legal claim against a property due to unpaid debts. Before ownership of a property can transfer, the lien typically must be satisfied or released. Liens can include but aren’t limited to:

• Contractor liens
• Tax liens
• Child support judgments
• Unpaid utility balances
• Court judgments

For example, if a previous homeowner hired a contractor but never paid the final invoice, that contractor may have filed a lien against the property.

2. Unpaid Property Taxes

Fun fact, property taxes follow the property and not necessarily the owner. If a title search reveals unpaid property taxes, those taxes generally must be paid before closing can proceed.

In some cases, the seller may not even realize there is a balance owed. Fortunately, title professionals can identify these issues early on and work with all parties to resolve them.

3. Errors in Public Records

Believe it or not, simple clerical mistakes can create major title issues. These issues are more common than many first-time homebuyers realize and often require additional research by title professionals.

Examples include:

• Misspelled names
• Incorrect legal descriptions
• Recording mistakes
• Filing errors

A typo made years ago can create confusion about ownership and require additional documentation before a sale can move forward.

4. Missing Heirs or Probate Issues

When property is inherited, ownership doesn’t always transfer as cleanly as some expect. If a previous property owner passed and the estate was not properly settled, questions may arise regarding who actually owns the property. Potential heirs may need to be located, legal documentation may need to be obtained, or succession matters may need to be addressed before the title can be cleared.

This type of issue is particularly important in Louisiana, where succession laws can affect property ownership. Most homeowners do not know the intricacies of succession, but your title team can help navigate the process.

5. Boundary Disputes and Survey Issues

Sometimes neighboring property owners disagree about where property lines begin and end. A survey may reveal simple issues like fences crossing property lines, encroachments, easement conflicts, etc. 

These issues don’t always stop a sale entirely, but they often require clarification before lenders and buyers feel comfortable moving forward with the property closing.

6. Unreleased Mortgages

Occasionally, a mortgage that was paid off years ago still appears in public records. Even if the debt no longer exists, the official release may never have been properly recorded. If and when this happens, title professionals must obtain documentation showing the loan was satisfied and ensure the public records accurately reflect the property’s status.

7. Ownership Disputes

While rare, there may be a property that multiple parties claim ownership rights to. This can happen because of divorce, estate disputes, forged documents, or recording errors. Ownership disputes often require additional legal review and documentation before a property can be sold.

What Happens If a Title Problem Is Found?

Now that we’ve covered some common issues, let’s talk about what happens when these issues arise. The good news is that finding a title issue doesn’t automatically mean the sale is canceled. Identifying potential problems is exactly why title searches are performed.

When a title issue is discovered, the title company works with all parties involved to determine the best path toward resolution. Depending on the situation, this may involve tracking down missing documents, settling liens, correcting public records, and working with attorneys when necessary.

How MidCity Title Helps Keep Closings on Track

We know title issues can sound intimidating for buyers. The reality is that most problems can be resolved fairly seamlessly when discovered early. At MidCity Title, we take a proactive and individualized approach to title searches and closing preparation. Our experienced professionals thoroughly review property records, communicate with all parties involved, and work diligently to resolve issues before they become major obstacles. You’ll love our hands-on approach to addressing your questions and concerns. 

Our goal is simple: make the closing process as smooth and stress-free as possible for Baton Rouge and New Orleans buyers, sellers, lenders, and real estate agents. Don’t just take our word for it!

“MidCity Title made my closing experience SEAMLESS! Everything from start to finish was absolutely perfect! Recommend 10/10!”

Baton Rouge home buyer

“Had a recent buyer closing with this title company and it went smoothly. Any questions I had were answered timely and the staff was professional in their interactions.”

Local Realtor

“MidCity Title made my closing in New Orleans so easy! Would definitely recommend them to anyone looking for a title company in New Orleans or Baton Rouge.”

New Orleans first-time home buyer

Whether you’re purchasing your first home or your fifth, having the right title company on your side can make all the difference. You’ll appreciate our team’s experience and guidance through whatever arises during your closing process. 

Frequently Asked Questions About Title Problems

Can a title issue stop a home sale completely?

In most cases, no. Many title issues can be resolved before closing. The key is identifying them early so there is enough time to address the problem.

How long does it take to fix a title issue?

The timeline depends on the specific issue. Some problems can be resolved within a few days, while others involving estates, liens, or legal disputes may take longer.

What is a title search?

A title search is a review of public records that verifies ownership and identifies potential issues such as liens, unpaid taxes, judgments, or ownership disputes.

Does title insurance protect against title problems?

Yes. Title insurance helps protect homeowners and lenders against certain title defects or ownership claims that may not have been discovered during the title search process.

How can I avoid delays before closing?

Work with an experienced title company early in the transaction. A thorough title search and proactive communication can help identify and resolve potential issues before they impact your closing date.

Need Help Navigating the Title and Closing Process?

Title issues can sound complicated, but you don’t have to navigate them alone. The MidCity Title team proudly serves Baton Rouge, New Orleans, and surrounding Louisiana communities with professional title searches, title insurance, closing services, and real estate transaction support.

Whether you’re buying your very first home or preparing to close on an investment property, our experienced team is here to answer your questions, resolve title concerns, and help make your closing experience as smooth as possible.

Contact MidCity Title today to learn more about our title and closing services.