Hidden Title Search Red Flags That Can Derail Your Real Estate Closing
A real estate transaction can quickly fall apart if serious issues surface during the title search process. A title search plays a critical role in verifying legal property ownership, identifying title defects, and ensuring a smooth real estate closing. When overlooked, title search red flags can lead to delayed closings, unexpected legal disputes, or complete deal cancellations. Buyers, sellers, and real estate investors who understand these risks are far better prepared to protect their investment and avoid costly real estate mistakes. Unreleased Liens and Outstanding Debts One of the most common title search red flags is the presence of unreleased liens. These may include unpaid property taxes, contractor liens, or judgments filed against the current owner. Even if the debt is unrelated to the sale, it follows the property, not the person, which can legally prevent the transfer of clean ownership. If liens are discovered late in the process, closing can be delayed while they are ne...