How to Spot Red Flags in a Seller’s Title History Before the Contract Is Signed
Help Your Buyers Avoid Surprises and Save Deals
A clean title means a smooth closing, but hidden issues can surface at the worst moment. Here’s how Realtors and lenders can spot trouble early:
🔎 Look for Unreleased Mortgages or Liens
Even if the seller swears the loan is paid off, a release might never have been recorded.
Tip: Ask for a recent mortgage statement or payoff letter before accepting the listing.
🔎 Watch for Boundary or Survey Discrepancies
Old surveys, fence line disputes, or missing easements can complicate financing.
Tip: Recommend a new survey if there’s any doubt.
🔎 Estate or Probate Concerns
If an owner is deceased or a property is held in a trust, extra documentation may be required.
Tip: Verify the legal owner matches the person signing the listing agreement.
🔎 Permits and Code Enforcement Issues
Open permits or code violations can delay or derail a sale.
Tip: Call the local building department for a quick permit search.
Partner Early with Your Title Team
Encourage sellers to order a preliminary title search as soon as the home hits the market. The small upfront cost can save weeks of headaches.
Pro tip: The Title Link can run a “pre-listing title check” so you and your clients walk into negotiations with confidence.