How to Handle Title Issues Before Closing on a Property

What is a Title to a Property?

A title is a legal document and record that establishes a person’s ownership rights to real property. It encompasses not only the deed, which transfers ownership, but also the chain of title showing past transactions and any encumbrances. The title indicates who holds legal rights to occupy, sell, or transfer the property. Ensuring a clear title is fundamental for buyers and lenders alike to confirm that the seller has valid ownership and the authority to convey the property.

In Florida, a title search typically involves a thorough examination of public records conducted by a title company or real estate attorney to identify issues such as unpaid taxes, liens, or judgment records. The title search ensures that no undisclosed claims jeopardize the buyer’s rights. Once cleared or insured, a title insurance policy protects against future disputes arising from pre-existing defects, offering peace of mind during and after closing.

Common Title Issues

Liens

Liens are legal claims against a property to secure payment of debts, such as unpaid property taxes, contractor invoices, or homeowner association fees. A lien remains on the title until the debt is satisfied, and it can prevent a clean close of the sale. For example, municipal tax liens for past-due property taxes in Florida must be paid at or before closing to clear the title. Buyers should carefully review the title commitment for any listed liens and confirm payoff amounts. Discovering a lien late in the process can delay closing or require last-minute wire transfers. Working with a title company that provides a detailed lien report helps identify and resolve encumbrances well before settlement.

Falsified Documents

Falsified or forged deeds, releases, or affidavits pose serious risks to a clear title. Forged signatures on prior deed transfers can cloud the chain of title and potentially invalidate transactions, exposing new owners to legal challenges. Title search professionals cross-verify signatures and examine recording histories to detect fraud. If forgery is suspected, a Florida real estate attorney can initiate corrective court proceedings to void fraudulent instruments and restore clear title.

Missing or Unclear Heirs

When a property owner dies without a clear will or heir designation, title issues arise that often require probate proceedings in Florida. Missing or unknown heirs can lead to disputes over rightful ownership, delaying closing or making title uninsurable. Title searches should include probate docket reviews and family history investigations. Where heirs are missing, attorneys may obtain court orders determining heirship or assist in filing heirship affidavits with the clerk of court. Providing proper legal notice to all potential heirs is critical to secure a marketable title.

Ownership Issues

Properties held in trusts, limited liability companies (LLCs), or partnerships can complicate title transfer. Discrepancies in signatory authority or outdated corporate or trust documents may invalidate conveyance abilities. Buyers should insist on current corporate records, trust agreements, and resolutions authorizing the sale. A thorough review of entity formation documents and verification of signatory authority ensures that the seller or entity representative has the legal power to execute contracts and transfer property.

Encroachments

Encroachments occur when a neighboring property’s structure, such as a fence or driveway, extends onto the subject property without legal permission. Unresolved encroachments can lead to boundary disputes and may require removal, easement agreements, or boundary line adjustments. Early in the process, a land survey reveals property boundaries and any encroachments. Survey exceptions must be resolved through recorded easement agreements or negotiated property line changes to avoid future litigation and ensure the buyer’s full property enjoyment.

How Can a Real Estate Attorney Help Resolve Title Issues?

A qualified Florida real estate attorney plays an essential role in identifying and curing title defects by ordering a comprehensive title search and interpreting the title commitment for liens, exceptions, or requirements. The attorney advises on payoff procedures and coordinates lien releases with creditors or taxing authorities to ensure the title is cleared before closing. Additionally, your lawyer reviews and negotiates any necessary easements, affidavits, or settlement documents to resolve encroachments and ownership discrepancies. They also work closely with the title insurer to secure endorsements that protect against remaining risks, facilitating a smooth and secure closing.

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