It is always exciting to buy your first home. But even one hidden title issue can bring the process to a halt. Although buyers are eager to move in and sellers are ready to move on, unseen problems with a property’s title can delay closing or even derail the sale.
That’s where you need a trust title expert. A reliable McAllen title insurance team can spot these red flags early, helping you avoid legal surprises and costly delays.
In this blog, we will walk you through the most common title issues first-time buyers should know and how to stay one step ahead.
7 Common Title Issues That Can Derail a Sale
Title issues can cause big delays for first-time buyers. Here are seven common problems that McAllen title insurance experts watch for to protect your deal and move forward confidently.
Unknown Liens
Liens are one of the most common title problems. They happen when a previous owner owes money, like unpaid taxes, contractor fees, or court judgments, and a creditor claims a part of the property. Even if the debt is not yours, it stays with the property until it is paid off.
For example, if the seller of your property did not pay a contractor, that contractor can still come after the home, even after you have bought it. This is why McAllen title insurance is important. It protects you from surprise debts tied to the property and helps you avoid costly legal trouble later on.
Errors in Public Records
Everyone makes mistakes, but in real estate, even small ones can lead to big problems. A simple typo, a misspelled name, or a wrong property description in public records can create legal issues for new homeowners.
These errors might seem minor, but they can affect your ownership rights or lead to costly delays. That is why a thorough title search is important. A trusted McAllen title insurance company can catch and fix these problems early, so they do not carry over to you and disrupt your homebuying journey.
Undisclosed Heirs
Sometimes, someone else may have a legal claim to the home you just bought. This can happen if a past owner did not have full rights to sell. For example, if a spouse did not sign the deed, or a long-lost heir shows up with a valid claim.
These issues might not come to light until years later, putting your ownership at risk. McAllen title insurance protects you from legal battles tied to undisclosed heirs and ensures that your property rights stay secure, no matter what happened in the property’s past.
Illegal Deeds
A deed is a legal document that transfers property. But if it is not signed correctly, it can be ruled invalid. This happens when the wrong person signs for a company or when someone who lacks legal capacity, like a minor or an elderly person with dementia, signs by mistake.
If the deed was not legally valid, your ownership could be challenged later. That is why working with a trusted McAllen title insurance provider matters. They help uncover these red flags early, making sure the deed is legal and enforceable, so you do not end up paying for someone else’s mistake.
Boundary or Survey Disputes
Imagine buying your dream home, only to find out your neighbor’s fence or shed is sitting on your land. This kind of issue, called an encroachment, can lead to serious disputes over property lines. These problems often arise when property surveys are not reviewed closely before the sale.
A seller should check for any boundary issues and resolve them with neighbors before closing. One way to stay protected is by working with a McAllen title insurance provider. They can help flag survey disputes early, so you do not end up in a legal fight over where your yard really begins.
Forgery or Fraud
Fraud and forgery are not common, but when they happen, they are expensive, costing over $143,000 on average per claim. A common scam involves a criminal pretending to be the owner of a property, forging their signature on a deed, and selling it to an unsuspecting buyer.
You could lose your home or face a legal battle if your seller turns out to be an impostor. A McAllen title insurance protects you from fraud, forgery, and other shady activity, even if it happens after you have bought the home. Some policies even cover forged deeds in your name.
Unrecorded Easements or Restrictions
Easements give others the right to use part of your property, like utility companies accessing pipelines, or neighbors sharing a driveway. While some are harmless, others can limit how you use your home. And if these easements are not recorded or disclosed, they can surprise buyers after closing.
The same goes for HOA rules, which might restrict things like home rentals, exterior changes, or even parking. These can cause serious headaches later. McAllen title insurance helps uncover hidden easements or restrictions early, so you know exactly what you are buying and avoid costly surprises down the line. Always review HOA documents before closing.
Key Takeaway
Buying a home is a big deal, and the last thing you want is a title issue turning your dream into a nightmare. From hidden liens to boundary disputes and even fraud, these problems can cost you time, money, and peace of mind.
A McAllen title insurance protects your property and your investment if something goes wrong. With the right coverage, you can avoid unexpected legal trouble. Ready to close with confidence? Trust the experts at Valley Land Title Co. to guide you every step of the way, because your peace of mind is our priority.