If your closing date is suddenly in jeopardy and no one seems to have a clear answer why, there's a good chance a title issue is to blame. Title problems are the most common reason a New York real estate closing gets pushed back or falls apart altogether, and they usually come down to one of a handful of recurring causes. Whether you're buying or selling, knowing what these issues typically look like can help make sense of what's happening, and what it will take to move forward.
When a Lien Is Hiding Behind the Deed
Before a property can change hands, its title needs to be free of outstanding liens and judgments. A lien can attach to a property for several reasons, and it typically has to be paid off or otherwise resolved before a sale can close.
Common examples include:
- Unpaid property taxes owed to the county or municipality
- Outstanding water or sewer charges tied to the property itself
- Contractor or mechanic's liens from unpaid work done on the property
- Judgments against the seller from an unrelated lawsuit
Sellers aren't always aware one of these exists, especially if it stems from a dispute that happened years earlier or involves a previous owner. Either way, it needs to be identified and cleared before the property can be sold.
Missing a Link in the Ownership Trail
A property's chain of title is the historical record of everyone who has ever owned it, and it needs to connect cleanly from one owner to the next without any gaps. A clerical error at the county clerk's office, a deed that was recorded out of sequence, or a past transfer that wasn't handled correctly can all create a break in that chain. When that happens, it raises a question about who actually holds valid ownership, and that question has to be answered before a sale can close.
The Mortgage That Was Paid Off, But Never Let Go
It’s fairly common for a homeowner to pay off a mortgage in full, but the lender's satisfaction of that mortgage is never properly filed with the county. Years later, that old loan still shows up on the title report as if it were unpaid. Resolving it usually means tracking down the original lender or its successor and getting the paperwork corrected, which can take time your closing timeline may not have.
An Heir Nobody Accounted For
Property that passes through an estate can create its own title complications, particularly if the estate wasn't fully or properly probated. If not every heir was identified and accounted for at the time, someone with a legitimate ownership claim could come forward later, sometimes long after a sale has already closed. This is one of many reasons estate planning matters well beyond a person's lifetime; it's often what keeps a property's ownership clear for the next generation.
When the Fence Isn't Where the Deed Says It Is
A survey can reveal that a fence, driveway, shed, or other structure crosses over a property line, known as an encroachment, or that a neighboring property has rights to use part of the land through an easement that wasn't accounted for. These issues don't necessarily stop a sale, but they usually need to be addressed, whether through a boundary line agreement, a negotiated resolution, or a specific exception carved out in the title insurance policy.
Find & Help These Problems Before They Get Worse
The good news is that most title issues can be identified well before closing day if you use a title search, which examines public records for these kinds of problems. Also, title insurance exists to protect buyers and lenders against anything a search doesn't catch. And if you have any questions or need help knowing what to do next, you can always turn to a professional real estate law attorney.
Here at Letterio & Haug, LLP in New York, we review title reports closely and work to catch and resolve issues long before they threaten a closing date. If a title problem has already come up in your transaction, or you'd simply like an experienced set of eyes on the process from the start, we're here to help. You'll have direct access to your managing attorney throughout, so you always know exactly where things stand.
Reach out to us at (845) 203-0997 to schedule a consultation.