Buying or selling a property in Florida is an exciting milestone, but a smooth transaction requires more than just signing on the dotted line. One of the most critical aspects of any real estate deal is a clear and marketable title – which proves rightful ownership and protects against future legal claims.
Unfortunately, title issues are common in Florida real estate and can cause significant delays, financial losses, or even derail a sale altogether.
Let’s explore five of the most common title problems in Florida real estate and look at how to avoid them.
1. Unresolved Liens and Judgments
A title is not just about ownership. It also reflects any financial claims tied to the property. Outstanding mortgages, tax liens, HOA dues, contractor liens, and court judgments can all create roadblocks in a transaction.
Why It’s a Problem:
- If the seller has unpaid debts attached to the property, the buyer may become responsible for clearing them.
- A title with unresolved liens cannot be legally transferred until the debts are satisfied.
How to Avoid It:
- Before purchasing, have a title company conduct a thorough title search to uncover any existing liens.
- Work with professionals to verify all debts are settled before closing.
- Title insurance can provide protection against undiscovered liens that surface later.
2. Errors in Public Records
Title records should provide a complete and accurate history of ownership and legal property descriptions. However, clerical errors, misspelled names, incorrect lot descriptions, or missing signatures can lead to major complications.
Why It’s a Problem:
- Even minor mistakes can delay closing or require costly legal action to correct.
- Incorrect property boundaries can lead to disputes and even ownership challenges.
How to Avoid It:
- Work with an experienced title company that carefully reviews all recorded documents before closing.
- If discrepancies arise, legal professionals can take corrective measures before the transaction is finalized.
3. Undisclosed Heirs or Ownership Disputes
When a property owner passes away, determining rightful ownership can become complicated – especially if there is no will or clear estate plan. Inherited properties can have undisclosed heirs or legal disputes that put a transaction at risk.
Why It’s a Problem:
- Heirs who were unaware of their claim may contest a sale after closing.
- Previous owners may not have properly transferred or documented title ownership.
- Florida’s homestead laws can impact a property’s transferability.
How to Avoid It:
- A title search should trace ownership history to confirm the rightful seller.
- Buyers should consider title insurance to protect against future claims.
- Sellers should check that any probate issues are resolved before listing a property.
4. Forgery and Fraudulent Transfers
Florida has a high rate of real estate fraud, including forged deeds, fraudulent transfers, and property scams. Criminals can forge signatures, falsify ownership records, or sell properties they don’t own.
Why It’s a Problem:
- Buyers may unknowingly purchase a property from someone who is not the legitimate owner.
- If fraud is uncovered later, the rightful owner could reclaim the property – leaving the buyer without recourse.
How to Avoid It:
- Work with a trusted title company that carefully verifies documents and conducts in-depth ownership research.
- Be wary of off-market deals or sellers offering deep discounts (these may be red flags).
- Protect your investment with title insurance, which can help mitigate fraud-related losses.
5. Survey or Boundary Disputes
A land survey confirms a property’s legal boundaries, but errors in past surveys or unrecorded easements can lead to conflicts with neighbors.
Why It’s a Problem:
- Buyers may discover that fences, driveways, or structures encroach on their land or vice versa.
- Unrecorded easements could allow third parties access to the property.
How to Avoid It:
- Order a professional land survey before closing to verify property lines.
- If encroachments exist, negotiate with neighbors or resolve disputes legally before finalizing the deal.
- Title insurance can help protect against legal claims tied to boundary issues.
Don’t Let Title Issues Stand in Your Way
By understanding these common problems and taking proactive steps with a professional title company, buyers and sellers can protect their investments and avoid costly legal battles.
At Liberty Title, we specialize in comprehensive title searches, risk mitigation, and title insurance solutions to make your transaction seamless and secure.
Don’t let title issues derail your real estate goals – contact Liberty Title today for professional title services and peace of mind.
Your Team at Liberty Title
