You found the perfect property, negotiated favorable terms, and scheduled your closing date. Then your title search reveals problems that threaten to unravel the entire transaction.
Title defects cause delays, increase costs, and sometimes kill deals entirely when parties cannot resolve them quickly. Consulting a South Florida real estate attorney early helps buyers and sellers identify and address title issues before they threaten closings.
Unreleased Mortgages
Previous owners may have fully repaid their loans. However, failure to secure formal mortgage satisfaction paperwork from the lender may result in outdated mortgages still being of record. These can remain on the public record, creating title defects that interfere with a clear transfer of ownership.
When lenders have dissolved or merged with other institutions, locating the proper party to issue a release can be especially challenging, and the process can be frustrating without proper legal guidance.
Liens and Encumbrances
Judgments, tax liens, mechanic’s liens, and homeowner or condominium association (HOA/COA) fees can affect a property without the current owner’s knowledge. Contractors may have filed liens for work completed years earlier that were never cleared. Unpaid federal or state taxes also create claims that stay with the property, even when ownership changes.
Errors in Public Records
Sometimes documents are recorded against the wrong property or indexed incorrectly. Errors in recorded documents can also lead to title issues that appear during a title search. Mistakes that must be corrected before a property can be transferred include the following:
- Misspelled names
- Inaccurate legal descriptions
- Swapped numbers
Ownership Disputes
Multiple parties sometimes claim valid ownership interests in the same property. Legal action to resolve forged deeds, fraudulent transfers, and improperly executed conveyances is often necessary.
Florida Statutes §§ 689.01 and 689.025 outline the standards for valid deed execution, and legal help ensures compliance and clear title transfer.
Probate and Heir Issues
Inherited property may come with lingering ownership claims, especially when estate plans are outdated or incomplete. Properties may have changed hands across generations without proper documentation of each transfer and probate actions may be necessary. Issues that can create uncertainty over who holds title include:
- Unloated heirs
- Disputed wills
- Unfinished probate proceedings
Boundary and Easement Disputes
Survey discrepancies and conflicting easement claims can cause title issues. Unresolved disputes with neighbors over property lines or land use, including fences erected in the wrong locations and utility easements not shown on previous deeds, must be resolved before buyers can move forward.
Divorce or Unknown Owners
Former spouses who never properly released their interests retain claims against property years after divorce. Properties with missing owners or unknown heirs present particular challenges because you cannot obtain a clear title without locating all parties with potential claims and court intervention may be required.
Pre-Emptive Resolutions
Working with a real estate attorney before listing property or making offers allows you to identify and address title issues proactively. Early title searches give you time to resolve problems without closing deadline pressure:
- Order preliminary title reports before marketing the property
- Obtain lien releases and satisfaction documents in advance
- Correct recording errors through curative instruments
- Resolve boundary disputes through surveys and agreements
- Complete probate proceedings affecting ownership
- Locate and obtain releases from former spouses or missing owners
Contact a Fort Lauderdale Real Estate Lawyer
Title problems do not resolve themselves, and waiting until closing to address them increases transaction risks. Contact Gottlieb Wagner at (305) 919-7788 or reach out online to consult with an experienced Fort Lauderdale real estate attorney who can help resolve issues proactively and protect your property interests.