Common Issues With Title That Can Delay Closing

Unfortunately closings do not always happen on time. The postponement of closing could be for several different reasons and all having different degrees of severity. The following are examples of some of the reasons closing could be delayed:  

Survey issues:  There are different types of surveys performed in conjunction with different types of real estate transactions.  Often times surveys can reveal issues with a property that were unknown to the seller.  Some examples of the most common issues are boundary lines, easements and improvements to the property that haven’t been documented. 

Unreleased liens: It doesn’t matter whether the lien is against the current or previous owner; it’s not uncommon for the public shockedrecord to reveal a deed of trust which was actually paid in full but shows as unreleased at the courthouse. Before we can get to the closing table, we need to know that the liens we are not paying off have been released of record. 

Improper legal description: If the deed was recorded with the wrong legal description, the property cannot be conveyed (or sold) until this issue is resolved.  When it comes to conveying property, the address isn’t that important but the legal description is!  If this mistake is not caught, you would actually be conveying (or selling/buying) a totally different property than the one you think.

Lack of clarity of ownership: The owners of the property must sign and convey the title to the new owners.  This means you can’t have an individual sign a contract then the property is actually in a trust.  Also, if the property is held in the name of a husband and wife, both spouses must sign the deed.

Unrecorded documents: If there are any documents that haven’t been recorded at the clerk’s office that complete a chain of title there could be delays.  The most common document missing from a chain of title would be a deed.

Improper execution of documents: Before documents are to be recorded they should be properly signed, dated and acknowledged by the correct parties.  If a title search reveals that there are some missing signatures or certain documents where signed by the wrong parties, it can be a big inconvenience and very time consuming to try and track down the right parties to sign, especially if it has been a while since the transaction.

Things happen that are out of our control.  One of the best ways to limit the risk of this affecting your closing is to have the experts at Title Junction take care of your closing and any issues that arise.

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Ben Gibbs

Title Junction, LLC

6225 Presidential Ct. #100

Fort Myers, FL.  33919


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