How to Address Title Issues and Encumbrances Before They Delay Your Closing

Title issues are one of the most common — and most frustrating — problems that can stall or derail a real estate transaction. Whether you're buying or selling, understanding how to identify and resolve these issues early can save you time, stress, and money.

Here’s a clear, practical breakdown of how to handle title issues and encumbrances so your closing stays on track.

Why Title Issues Matter More Than Most People Realize

A title is the legal record of who owns the property.
If that record isn’t clear, the sale can’t move forward.

Title issues can cause:

• Delays in closing

• Added legal requirements

• Unexpected expenses

• Buyer/seller disputes

• Inability to transfer clear ownership

Addressing problems early ensures a smoother, more predictable path to the closing table.

1. Understand What Title Issues Actually Are

Title issues typically arise when something affects the seller’s legal right to transfer ownership.

Common examples include:

• Outstanding liens

• Property boundary questions

• Errors in public records

• Missing or unclear signatures

• Ownership disputes

• Unreleased mortgages

• Encumbrances that limit property use

These issues don’t always mean the sale is in jeopardy — but they do require resolution.

2. Review the Title Search as Early as Possible

A thorough title search uncovers anything attached to the property that must be addressed before closing.

When reviewing the title report, focus on:

• Claims that must be cleared

• Items that require documentation

• Encumbrances that may remain in place after closing

• Issues that need legal review

The earlier you see these items, the more time you have to resolve them.

3. Work With the Proper Professionals to Resolve Liens

Liens must be paid off or otherwise released before ownership transfers.
This usually involves:

• Contacting the lien holder

• Verifying the payoff amount

• Ensuring proper release paperwork is filed

Staying proactive prevents last-minute surprises.

4. Address Ownership and Signature Issues Promptly

If a past deed is missing signatures or ownership was never fully transferred, additional documents may be needed.

These issues are resolved by:

• Corrective deeds

• Affidavits

• Additional verification

• Attorney-prepared documentation

This is common and fixable — it just requires proper handling.

5. Understand Encumbrances That Stay With the Property

Some encumbrances don’t block a sale but do affect the property.

These may include:

• Easements

• Covenants and restrictions

• Access agreements

• Utility rights

Buyers should be aware of them, and sellers should disclose them clearly so there are no surprises.

6. Rely on Your Agent and Title Professionals for Guidance

Title issues are normal — but they’re not something you should tackle alone.
Your real estate agent, attorney, and title professionals work together to:

• Interpret the title report

• Communicate with all parties

• Coordinate document corrections

• Ensure legal compliance

• Keep the process moving toward closing

With the right support, even complicated title issues can be resolved efficiently.

Final Takeaway

Title issues and encumbrances don’t have to derail your closing — but they do require attention, strategy, and professional guidance. By identifying potential problems early and addressing them proactively, you protect your investment and keep your transaction on schedule.

Whether you're buying or selling in Northern NJ, having an experienced expert on your side ensures you’re never navigating these challenges alone.

📞 Have questions about title issues or preparing for a smooth closing? Let’s talk.
Call/Text 201-970-3960
Office 201-592-8900
Email [email protected]

Scott Selleck | The Selleck Group
Northern NJ Realtor — Bergen & Hudson County
Keller Williams City Views Realty
2200 Fletcher Avenue, Fort Lee, NJ 07024

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