
If you’re in the process of buying, selling, or even refinancing, don’t assume the title is clean just because no one says anything. Always get a professional title search, where they look for the title red flags mentioned in this post by Burchard Abstract Company in Gonzales, TX.
When purchasing a home, buyers often focus on visible factors—location, condition, and cost. However, behind every real estate transaction lies a complex legal framework: the property title. While title issues may not be as immediately noticeable as chipped paint or outdated appliances, they can present far more serious long-term consequences if left unchecked.
A property’s title is the legal proof of ownership. Ensuring it is clean and clear is essential for a secure and successful transaction. Below are five often-overlooked red flags that can jeopardize your purchase—and how to protect yourself against them.
A lien is a legal claim against a property, often arising from unpaid debts such as contractor fees, back taxes, or utility bills. Sellers may be unaware of older or minor liens, or assume they’ve been resolved, only for them to surface during the sale process.
Why it matters:
If these liens are not identified and cleared before the sale is finalized, the new owner may become responsible for them. This can lead to unexpected legal or financial burdens.
How to avoid it:
A comprehensive title search conducted by a reputable title company will typically uncover these issues. Title insurance also offers protection if a hidden lien is discovered post-closing.
Easements grant others the legal right to use a portion of a property for specific purposes, such as utility access or shared driveways. While some are straightforward and documented, others may be informal or unknown to the seller.
Why it matters:
Easements can affect your use of the property, impact your privacy, and even limit future development or landscaping plans. Disputes over maintenance and access can also arise between neighbors.
How to avoid it:
Review all recorded easements with your title officer or real estate attorney. Understand exactly who has access to what, and under what conditions.
In cases where property is passed down through inheritance, unresolved probate issues can create complications. Sometimes heirs are unaware of their legal rights, or paperwork is not correctly filed after a relative’s death.
Why it matters:
An unidentified heir could later come forward and claim legal ownership or an interest in the property, potentially invalidating the sale or leading to legal action.
How to avoid it:
Make sure the seller can provide a clear chain of ownership. If the property is part of an estate, confirm that probate has been properly settled. A skilled title professional will know what to look for.
While less common, title fraud does occur. This includes forged signatures, false identities, or unauthorized transactions somewhere in the property’s ownership history.
Why it matters:
If a previous deed was forged or fraudulent, the current owner may not have had legal authority to sell the property. In such cases, your ownership could be challenged in court.
How to avoid it:
Work with a licensed title company that thoroughly examines all past transfers and documentation. Title insurance is especially critical here, as it may cover legal fees and losses if fraud is discovered.
A property’s legal description outlines the exact boundaries and features of the land being transferred. Even small errors in these descriptions can lead to disputes or confusion over property lines.
Why it matters:
Inaccurate descriptions can result in the wrong lot being sold—or even shared ownership of land between neighbors. These issues are often discovered only when one party attempts to build, fence, or sell.
How to avoid it:
Compare the legal description to a current survey of the property. Your title company should also verify that recorded information aligns with the intended purchase.