A Good Deal Can Still Stop at Title

In my work as a Maryland real estate attorney, I have seen transactions slow down because an ownership issue, old lien, or estate problem was discovered later than anyone expected. By that point, the buyer may already have financing lined up, inspections completed, and a closing date on the calendar.

The problem is that having a signed contract does not automatically mean the seller can legally transfer clear title.

A title search can uncover things like an old mortgage that was never released, unpaid taxes or liens, errors in a prior deed, missing heirs, or questions about who actually has the legal right to sell the property. Some of these issues are fairly simple to clear up. Others can take much more time, especially when an estate or ownership dispute is involved.

That is why I think title work should start as early as possible. Confirm who actually owns the property, make sure the person signing has the authority to sell it, and give yourself time to deal with any liens or estate issues before the final week of the transaction.

A good purchase price and strong numbers are important, but they do not matter much if the property cannot be transferred when everyone expects it to.

For investors who have been through closings, what title issue has surprised you the most during a deal?