When you’re knee-deep in a real estate transaction, a title insurance search might not sound like the flashiest part of the process, but it’s one of the most critical. A deep title search ensures that the property’s title is clean, transferable, and free from hidden issues that could turn your dream investment into a legal nightmare.
At AcerSearch, we specialize in uncovering hidden landmines in property titles before they can cause damage. In this blog, we’re pulling back the curtain on some of the most common red flags found during a title insurance search, and why they matter.
Unreleased Mortgages or Liens
One of the most common and sneaky red flags? Old mortgages or liens that were paid off but never properly released from public records.
Why it’s a problem:
They can create ownership disputes or delay the sale.
How to resolve:
Verify satisfaction documents are filed and recorded with the county clerk’s office.
Unknown Heirs or Missing Signatures
Sometimes, a property has passed through generations, and not every heir was tracked down or signed off.
Why it’s a problem:
Heirs can later claim ownership or contest the sale — even after closing.
How to resolve:
A thorough title search and affidavit of heirship can clarify ownership before the sale.
Errors in Public Records
Human error happens. Misfiled documents, typos in names or addresses, or incorrect legal descriptions can throw a wrench in the transaction.
Why it’s a problem:
These discrepancies can delay or invalidate the sale until corrected.
How to resolve:
Title professionals can identify and work to amend the inaccuracies through proper channels.
Unknown Easements or Encroachments
An easement gives someone else a legal right to use part of the property. An encroachment happens when a structure crosses boundary lines.
Why it’s a problem:
They limit how the buyer can use the land and may affect property value.
How to resolve:
Get a new survey and consult legal counsel to clarify boundaries and rights.
Unpaid Property Taxes or HOA Dues
Delinquent taxes or unpaid homeowners association (HOA) fees can turn into liens against the property.
Why it’s a problem:
These unpaid balances must be cleared before a title can transfer cleanly.
How to resolve:
Ensure all back taxes and fees are paid and released prior to closing.
Forgery or Fraud in the Chain of Title
Forgery of signatures or fraudulent transfers may not be immediately visible but can jeopardize ownership rights down the line.
Why it’s a problem:
They can lead to court battles, reversed sales, or financial losses.
How to resolve:
Title insurance protects against covered losses, but prevention starts with thorough vetting by trusted title professionals.
Restrictive Covenants or Zoning Issues
These are limitations written into a deed or imposed by local regulations that restrict how the property can be used.
Why it’s a problem:
Buyers may unknowingly violate zoning laws or deed restrictions, leading to fines or forced changes.
How to resolve:
Review all deed restrictions and zoning ordinances during the title search.
Bankruptcies in the Chain of Title
If any previous owner filed for bankruptcy, the property might be tied to unresolved claims or court approvals.
Why it’s a problem:
It could delay or even block a transaction if court clearance wasn’t obtained.
How to resolve:
Carefully check bankruptcy court records and get legal clearance when needed.
Why Title Searches Matter More Than Ever
In today’s fast-moving real estate world, skipping a thorough title insurance search is like buying a car without checking the engine. It’s not just about paperwork, it’s about protecting your investment and avoiding years of legal headaches.
AcerSearch ensures that every title search is performed with precision, accuracy, and deep local expertise. Our team knows what red flags to look for and how to clear the path for a smooth closing.