The Hidden Title Problems That Can Kill a Real Estate Deal in Richmond, Indiana
Missy Horner
President, Empire Title Services | 20+ Years Experience
Quick Answer: The 7 Hidden Title Problems
1. Unpaid property taxes (tax liens)
2. Contractor or mechanic's liens
3. Errors in public records
4. Unknown heirs claiming ownership
5. Fraud or forged documents
6. Undisclosed easements
7. Boundary disputes
Questions? Call Empire Title Service in Richmond: (765) 935-9966
The closing date is set. The moving truck is scheduled. Everyone is ready to celebrate.
Then the title search comes back with a problem. Suddenly the deal that seemed certain is on hold.
One of the most important steps in any real estate closing is the title search. This process uncovers hidden ownership issues that could prevent a property from legally changing hands. Some problems are minor and easy to resolve. Others can completely derail a transaction.
Why Title Searches Matter
Before a property can be sold, the title company performs a thorough title search - reviewing public records to confirm:
Records reviewed include deeds, mortgage records, tax records, court judgments, property liens, and easements. Most issues are discovered and resolved before closing - but occasionally a major problem appears.
The 7 Most Common Hidden Title Problems
Unpaid Property Taxes
If previous property taxes were never paid, the local government may place a tax lien on the home. Tax liens must be resolved before ownership can transfer. Usually, the seller pays the unpaid taxes from the proceeds of the sale.
Contractor or Mechanic's Liens
If a contractor completed work on the home but was never paid, they may file a mechanic's lien against the property. Even if the current seller wasn't responsible for the debt, the lien stays attached to the property until it's resolved.
Errors in Public Records
Mistakes in recorded property documents - such as misspelled names, incorrect legal descriptions, filing mistakes, or missing signatures - can create legal uncertainty about who owns the property. Title companies work to correct these before closing.
Unknown Heirs
If a previous owner passed away and the home was sold before all heirs were identified, someone may later claim they inherited part of the property. If that claim is legitimate, it can challenge current ownership - making this one of the more complicated title issues.
Fraud or Forged Documents
While rare, real estate fraud does happen. Forged signatures on past deeds, fraudulent property transfers, or fake documents recorded with the county can all create legal disputes over ownership - which is one of the primary reasons title insurance exists.
Undisclosed Easements
An easement allows someone else to use part of the property for a specific purpose - such as utility lines, shared driveways, or drainage access. Some easements are obvious, but others are buried in old property records. Buyers need to know about these before purchasing.
Boundary Disputes
Disagreements about where property lines actually exist - caused by fences in the wrong place, conflicting surveys, or inaccurate old maps - can delay closing until the issue is clarified with a current survey and legal review.
How Title Companies Resolve These Problems
When a title issue appears, the title company works to resolve it before closing. Solutions depend on the type of problem:
The goal is always the same: ensure the buyer receives clear and legal ownership of the property.
Why Title Insurance Is Important
Even a Thorough Search Can Miss Hidden Issues
Some title problems remain hidden even after a detailed title search - buried in decades of records, or stemming from fraud that wasn't yet discovered. Owner's title insurance protects homeowners if a problem surfaces after the purchase.
A Deal Can Move Forward - or Stop Completely
When a title issue appears, the outcome depends on how easily it can be resolved. Some problems are fixed in a day or two. Others may take weeks - or stop the transaction entirely. That's why experienced title professionals carefully review property history well before closing day.
Frequently Asked Questions
What is the most common title issue in real estate?
Unpaid liens - such as property tax liens or contractor mechanic's liens - are among the most common title issues discovered during a title search. These must be resolved before ownership can transfer to the buyer.
Can title issues delay closing?
Yes. If a title problem is discovered, it must usually be resolved before the property can legally transfer to the buyer. Some issues are fixed within a day or two; others can take weeks or even stop the transaction entirely.
How do buyers protect themselves from title problems?
Buyers typically purchase owner's title insurance, which protects them financially if an ownership issue appears after the purchase. Title insurance covers legal defense costs, ownership claims, and financial losses caused by title defects discovered after closing.
Missy Horner
President, Empire Title Services
With over 20 years of experience in Indiana and Ohio real estate closings, Missy Horner leads Empire Title Services in providing expert title insurance, property searches, and closing coordination. A trusted resource for real estate agents, lenders, and homeowners throughout Wayne, Randolph, and Henry counties.