Common Title Defects and How to Resolve Them for a Smooth Closing

Buying a home is one of the most exciting moments in life. But encountering issues during this period can make the entire experience frustrating. This is usually what happens when people deal with “title defects.” 

You have saved up a considerable amount of money, found the perfect place, and can already picture yourself and your partner raising a family in this house. But discovering a problem with your property’s title can quickly turn your dream into a nightmare. 

“Am I about to lose everything I’ve been working toward?” you might be wondering. It’s not as bad as you think, and most title defects can be resolved. 

With over 50 years of combined experience in real estate law, we see Californians deal with title defects all the time. Unfortunately, it’s a common problem. Our law firm offers practical solutions that have helped our clients secure their property rights. 

Have a question about your title defect and would like to discuss it with our Oakland title defects and disputes lawyer? Call us at (510) 982-3001 to schedule your free consultation. 

Your property title isn’t just a piece of paper—it’s the legal foundation of your ownership. 

A title defect (sometimes called a “cloud on the title”) is any issue that calls your ownership into question or prevents the clear transfer of property from one owner to another. 

These defects come in all shapes and sizes. Some are as simple as a misspelled name that can be fixed with a quick trip to the county recorder’s office. Others involve complex inheritance disputes that might trace back through several generations of a family tree. 

The most serious defects can even result in you losing your home entirely. 

Statistically speaking, approximately 25% of residential real estate transactions encounter title issues, which are resolved by title professionals before closing, according to the American Land Title Association (ALTA). 

Let’s look at some of the most common title defects you might encounter and how they can be resolved:

A fair share of title defects stem from simple errors in public records. These might include misspelled names, incorrect property descriptions, or improperly filed documents. Even a small typo can create big problems down the road. 

Liens are claims against your property for unpaid debts. These might include tax liens, mechanic’s liens from contractors who weren’t paid for work on the property, or judgment liens from court cases. The troubling part? Sometimes these liens can exist without your knowledge, especially if they were attached to the property before you bought it. 

Your fence might be in the wrong place, or your neighbor might be using part of your land, thinking it’s theirs. These boundary disputes are quite common and often arise from incorrect surveys, adverse possession claims, or simple misunderstandings. 

An easement gives someone else the right to use part of your property for a specific purpose (e.g., a utility company running power lines or a neighbor accessing a shared driveway). Unknown easements can limit how you use your land. 

Sometimes property passes through families without proper legal documentation. Years later, a previously unknown heir might appear and claim ownership rights to your property. 

If a previous deed in your property’s history was forged or someone impersonated the true owner during a past sale, it could invalidate the entire chain of title, including your ownership. 

If a previous foreclosure on your property wasn’t handled correctly, the former owner might have claims against your title.

Before you buy a home, a title company will dig into its history, combing through public records to spot any red flags. In California, they’re the first line of defense against title defects, and they’re pretty good at it. 

Here’s what they do: they run title searches, checking deeds, mortgages, tax records, and more to make sure the seller owns the place and there’s nothing fishy going on. If they find a lien or an error, they will flag it so it can be fixed before you sign. 

But here’s the thing—title companies aren’t perfect. They rely on public records, and if those records are wrong or incomplete, there might be a defect. That’s why you can benefit from having a real estate law attorney on your team. 

At Estavillo Law Group, we work alongside title companies to double-check their work and catch anything they might miss. We’re your safety net, making sure you don’t get stuck with a problem you never signed up for. 

So, how do title defects even happen? It’s usually a mix of human error, old habits, and life’s unpredictability. Common culprits include: 

Whatever the cause, a title defect can be frustrating. But in our experience with estate law at Estavillo Law Group, we know that most title defects can be prevented with proper legal guidance during transactions. 

Title insurance policy acts as a shield for your home. You pay for it once when you buy the property, and it protects you from financial loss if a title defect pops up later. In California, it’s a must-have—lenders won’t even give you a mortgage without it, according to the state’s Department of Insurance. And honestly, you shouldn’t skip it either. 

Here’s how it works: if a lien, fraud, or some other issue arises after you’ve bought the house, your title insurance steps in. It covers legal fees to fight the claim, and if you lose, it pays you for your losses up to the policy amount (usually the home’s purchase price). Without it, you’d have to pay for everything from your pocket. That’s a risk nobody should take. 

There are two types in California: a lender’s policy (required by your bank) and an owner’s policy (optional but smart for you). The owner’s policy is your lifeline—it’s what keeps you from ending up in a financial disaster if something goes wrong. 

Every deed, lien, and mortgage gets filed with the county recorder, creating a paper trail that proves who owns what. When those public records are accurate, title defects are less likely to happen. But when they’re not? That’s when the trouble starts. 

Keeping records straight starts with the people involved in a sale. Sellers need to clear old debts, and buyers should insist on a thorough title search. If a mistake is already in there (e.g., a typo or a missing signature), it’s fixable with a little effort. Filing corrected documents or getting a court order can clean things up. 

The catch is, you can’t control what happened before you got involved. That’s why proactive steps matter so much. At Estavillo Law Group, we dive into those records for our clients, spotting title issues early and fixing them before they become headaches. 

Don’t let a title defect derail your plans. If you’re worried about a potential issue or just want peace of mind before you buy, give us a call. Contact Estavillo Law Group today for a consultation—we will walk you through your options and fight for your legal rights. Your dream home is worth it, and so are you. Call us at (510) 982-3001 or complete our contact us form to schedule your free 15-minute phone consultation.