As a real estate agent in Florida, ensuring a smooth closing process for your clients is crucial. However, title issues in Florida can often emerge at the last minute, causing frustrating delays—or worse, derailing a transaction altogether. Understanding these common title problems and how to address them proactively can help you streamline closings, build trust with clients, and avoid costly surprises.
In this guide, we’ll cover the most frequent title issues in Florida real estate and offer solutions to help you keep deals on track.
1. Unresolved Liens and Judgments – A Common Title Issue in Florida
The Issue:
A property may have outstanding liens from unpaid debts, including contractor liens, HOA fees, utility bills, or tax liens. These encumbrances must be cleared before a sale can proceed.
How It Affects Closing:
Liens create legal claims against a property, preventing the title from being transferred to the new owner until they are satisfied or resolved.
How to Address It:
- Encourage sellers to conduct a preliminary title search before listing their home to uncover any existing liens.
- Work with a trusted title company like US Patriot Title to perform a thorough title examination early in the process.
- If a lien is discovered, assist your client in negotiating a payoff agreement or disputing the lien if it was filed in error.
For more information on title searches, visit our Title Services page.
2. Errors in Public Records – A Preventable Title Issue in Florida
The Issue:
Clerical mistakes, incorrect legal descriptions, or misspelled names in public records can create complications during closing.
How It Affects Closing:
A small recording error in a previous deed or mortgage document can result in title defects that require correction before the transaction can move forward.
How to Address It:
- Ensure all seller documents are accurate and up to date before listing the property.
- Work with a title company that meticulously reviews public records for discrepancies early in the transaction.
- If an error is found, the title company can work with local agencies to rectify the mistake before it becomes a last-minute hurdle.
To learn more about how title companies assist with these issues, check out ALTA’s Title Issues Guide.
3. Unreleased Mortgages – A Title Issue in Florida That Causes Closing Delays
The Issue:
A seller may have paid off a previous mortgage, but the lender never properly recorded the satisfaction of the loan in public records.
How It Affects Closing:
An unresolved mortgage record can create confusion and delays as it appears that the property still has an active lien.
How to Address It:
- Request a Mortgage Satisfaction Letter from the lender before listing the home.
- Work with a title company to confirm that all previous mortgages have been officially released in public records.
- If an issue arises, the title company can assist in obtaining the necessary release documents before closing.
For guidance on mortgage satisfaction laws, visit Florida Department of Financial Services.
4. Undisclosed Heirs and Probate Issues
The Issue:
If a previous owner passed away without a clear will or proper estate planning, their heirs may still have legal claims to the property.
How It Affects Closing:
Disputes over ownership or missing heirs can delay the sale or even invalidate the seller’s ability to transfer the title.
How to Address It:
- If the property was inherited, ensure that the probate process has been fully completed before listing it.
- Work with a title company to verify the chain of ownership and uncover any outstanding heir claims.
- If heirs are missing, legal assistance may be required to resolve the issue before closing.
Learn more about Florida probate laws from the Florida Courts.
5. Boundary Disputes & Survey Issues
The Issue:
Property lines may not always be as clear as they seem. Neighbors may dispute boundaries, or past surveys may reveal encroachments from fences, driveways, or structures.
How It Affects Closing:
A dispute over property lines can delay or even cancel a sale if legal action is required to resolve the issue.
How to Address It:
- Recommend a new property survey if the existing one is outdated or unclear.
- Encourage the seller to discuss any boundary concerns with neighbors before listing.
- If a dispute arises, legal negotiations or title insurance coverage may be required to resolve the issue.
For more on property surveys, check out the National Society of Professional Surveyors.
Conclusion
As a real estate agent in Florida, understanding these common title issues in Florida and addressing them early in the transaction process can prevent closing delays and build confidence with your clients.
Partnering with a trusted title company like US Patriot Title ensures that your transactions proceed smoothly, with expert guidance on resolving any title-related challenges before they become roadblocks.
Need a Reliable Title Partner?
If you want to streamline your closings and avoid unexpected title issues in Florida, contact US Patriot Title today. We specialize in remote closings and title services throughout Florida, ensuring that you and your clients experience hassle-free transactions.
