That Could Derail Your Deal in Illinois
When buying or selling a property in Illinois, the last thing you want is a surprise during the closing process. Unfortunately, title issues can surface unexpectedly, potentially delaying or even derailing your transaction. Understanding these common title problems can help you prepare and take proactive steps to resolve them. Let’s explore the top five title issues in Chicago and the surrounding suburbs and how to address them.
1. Liens Against the Property
Liens are one of the most frequent title issues, and they can significantly complicate a real estate transaction. Listing Agent Advantage at @Home Title Services provides all our sellers with seasoned closing attorneys and legal support throughout the transaction at no cost, in addition to discounts on title insurance. This is guaranteed to equal $1,000 or more in closing-cost savings, making our partner agents look like heroes and elevating their value proposition.
What Are Liens?
A lien is a legal claim against a property, typically used as collateral for a debt. Common types of liens include:
- Mortgage liens – Unpaid home loans.
- Tax liens – Due to unpaid property taxes.
- Mechanics’ liens – Filed by contractors for unpaid work.
How They Derail Deals
Liens must be paid off or resolved before the property can be sold. If discovered late in the process, they can delay closing or even lead to the deal falling through.
✅ Pro Tip: Always conduct a title search early in the process to uncover and address any liens. Title insurance can protect you if liens surface post-purchase.
2. Errors in Public Records
Even small clerical mistakes can lead to significant title problems.
Examples of Errors
- Misspelled names on deeds.
- Incorrect property descriptions.
- Outdated or missing documentation.
How They Impact Closings
Errors in public records can lead to confusion over property ownership or boundaries, requiring corrections that take time and money.
✅ Pro Tip: Work with a reputable title company to ensure all records are accurate and up to date. Listing Agent Advantage at @Home Title Services, and their underwriter partner AmTrust Financial has seen it all and we are her to help.
3. Unknown Heirs or Claims to Ownership
Real estate ownership can get murky if there are undisclosed heirs or disputes over ownership.
How It Happens
- A previous owner may have passed away without a will, leading to disputes among heirs.
- An heir might be unaware of their claim to the property.
- A prior owner may have sold the property without all parties’ consent.
Why It’s a Problem
These issues can halt the sale until ownership disputes are resolved. In some cases, a court may need to get involved.
✅ Pro Tip: Title insurance protects buyers from unexpected claims of ownership after purchase.
4. Boundary Disputes
Boundary issues can create confusion and conflict, especially if neighboring properties overlap.
How They Arise
- Incorrect surveys.
- Discrepancies in legal descriptions of the property.
- Long-standing informal agreements that were never documented.
The Impact on Sales
Boundary disputes can delay closings, require costly legal resolutions, or even render a deal void if the boundaries are critical to the buyer.
✅ Pro Tip: If you’re a buyer, always request a current property survey to verify boundaries before purchasing. At Listing Agent Advantage, we order surveys well before closing to identify potential boundary disputes. If the seller has a recent survey and the property has not changed in any way, they may be able to use that one if the buyer accepts it.
5. Forged or Fraudulent Documents
Fraudulent activity is rare but can have devastating consequences.
Examples of Fraud
- Forged signatures on deeds.
- Fake identity used to sell a property.
- Fraudulent claims of ownership.
How It Affects Transactions
Fraudulent documents can invalidate ownership claims, leading to lengthy legal battles to establish true ownership.
✅ Pro Tip: Title insurance provides essential protection against losses due to forgery or fraud. Additionally, work with trusted professionals to verify documentation. The attorneys at @Home Title Services have 25-plus years of experience and ensure a smooth closing and deep savings on the title and legal fees for our agent partners and their clients.
How to Avoid Title Issues
- Conduct a Thorough Title Search
A title search is the first line of defense against title issues. Reputable title companies have the expertise to uncover problems early. - Invest in Title Insurance
Title insurance protects buyers and lenders from unforeseen issues that could jeopardize ownership or financial stability. - Partner with Experts
Work with experienced real estate agents, attorneys, and title companies to navigate the complexities of property transactions. - Resolve Issues Early
Don’t wait until closing to address title issues. Proactive resolution saves time and stress.
The Bottom Line
While title issues seem daunting, understanding common problems and taking proactive steps can save you from headaches. Whether uncovering liens, correcting public record errors, or resolving boundary disputes, the right team and tools can make all the difference.
Before you buy or sell, address these title concerns head-on to protect your investment and ensure a smooth transaction. With some preparation, you can confidently move forward and make your real estate dreams a reality.
Ready to close with confidence? Contact Listing Agent Advantage to learn more about our Certificate of Savings, which guarantees a minimum closing cost savings of $1,000, including a seasoned closing attorney and legal services at no charge.
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