When you’re buying or selling a home in Florida, it’s important to be prepared for any issues that may arise and delay closing. Whether it be a small clerical mistake or a more serious ownership dispute, without preparation, sudden issues can grind your real estate deal to a sudden halt.
To help you plan ahead for your next real estate transaction, here’s a closer look at the most common title problems that cause closing delays in Florida, why they happen, and how you can avoid them.
1. Unresolved Liens or Judgments
One of the most frequent reasons closings get delayed is the discovery of liens or judgments on a property. These are legal claims made by creditors or other entities that need to be settled before the property can transfer ownership. Common examples include unpaid contractor bills, overdue property taxes, and HOA assessments.
A lien effectively “locks” the title until the debt is paid. If the issue isn’t addressed, it can prevent closing or leave the buyer responsible for someone else’s financial obligation.
How to avoid it: Before listing a home or submitting an offer, make sure a professional title search is conducted. Sellers should settle all debts and confirm lien releases in advance. Buyers can protect themselves by working with an experienced title company, which ensures all liens and judgments are identified and cleared prior to closing.
2. Errors or Omissions in Public Records
Even relatively small clerical errors, like misspelling a name, can lead to major delays. Errors in public records can create uncertainty about property ownership or legal boundaries, and fixing them often requires legal filings or county re-recording.
How to avoid it: Review all property records thoroughly, and work with a title company that double-checks documentation for accuracy. Purchasing title insurance offers an added layer of protection if an undiscovered error surfaces after closing.
3. Unknown Heirs and Ownership Disputes
Florida has a large number of inherited and estate-owned properties. When a property owner passes away without a Will, or if heirs were never properly identified, disputes over ownership can arise. These unknown heirs can delay or even derail a sale entirely.
How to avoid it: When buying or selling an inherited property, confirm that all probate proceedings are complete and every heir has signed off or released their interest. A skilled title company and real estate attorney can help ensure the property’s chain of title is fully established.
4. Boundary and Survey Discrepancies
Another common issue arises when there are boundary disputes. A fence, shed, or driveway might encroach on a neighbor’s lot, or the official survey might not match the recorded plat. These issues often require legal or surveyor intervention before closing can proceed.
How to avoid it: Always order a current property survey before closing, even if one was completed years ago. Compare it with county maps and visible property boundaries. Address discrepancies early on so as to not delay closing.
5. Unreleased Mortgages or Old Loans
Even when a homeowner pays off their mortgage, the lender must record a Satisfaction of Mortgage to show that the debt has been cleared. If this step is overlooked, the lien remains on record and can complicate or delay a future sale.
How to avoid it: Confirm that all previous mortgages or loans have been properly released. Title professionals can contact lenders to obtain any missing documentation, ensuring the title reflects that all paid liens were properly released.
6. Unpaid HOA or Condo Association Fees
If the property is governed by one of Florida’s many homeowners’ associations (HOAs) or condominium boards, any unpaid fees can quickly become a problem. Associations have the right to file liens against properties for unpaid dues, assessments, or rule violations, all of which must be cleared before the sale.
How to avoid it: Request an association estoppel letter early in the process. This document lists all outstanding fees, assessments, and potential violations tied to the property. Having this information upfront prevents unpleasant surprises and ensures the closing timeline stays on track.
7. Fraud, Forgery, and Title Theft
Fraudulent real estate activity, which can include things like forged deeds and fake sellers, is becoming increasingly common. These scams can result in clouded titles and devastating financial losses for unsuspecting buyers.
How to avoid it: Verify the identities of all parties using government-issued identification and confirm ownership through official records. Always work with a licensed title company that uses advanced fraud prevention measures, such as identity verification software. Title insurance is also an essential protection against losses from undiscovered forgery or fraud.
8. Probate and Estate Delays
When a property owner dies, the property may need to go through the probate process before it can be sold. If the process isn’t properly completed, the transaction may be delayed for months.
How to avoid it: Ensure probate is finalized and that the seller has full legal authority to convey the property. If probate is ongoing, work with a title company familiar with estate transactions to keep the process organized and efficient.
9. Easements and Encroachments
An easement gives someone other than the property owner the right to use part of the land, such as a utility company or neighboring property owner. Problems occur when easements are not disclosed or when a structure encroaches onto another property. Both can affect property value and create title complications.
How to avoid it: Conduct a thorough title search to identify existing easements and review them with your title agent or attorney. Obtain a property survey to identify any encroachments before the closing takes place.
Avoid Title Issues with Marina Title
Title problems don’t have to derail your real estate transaction. With preparation and professional guidance, you can navigate these challenges and protect your investment.
At Marina Title, our experienced team specializes in identifying, resolving, and preventing title issues before they impact your closing. From first-time homebuyers to seasoned investors, we provide the expertise and attention to detail every Florida real estate transaction deserves.
Call us today at 1-855-513-5880 or send us a message via our Secure Contact Form to learn more about our real estate and title services for Florida homeowners, buyers, sellers, and investors. We provide real estate, escrow, and closing services throughout the State of Florida.
