Common Title Issues and How Insurance Can Help

17 February 2026

Buying a home is an exciting journey, but it comes with its fair share of challenges. One of the most overlooked yet critical aspects of a real estate transaction is the property title. You might assume that once you’ve signed the papers, the home is officially yours, but title issues can throw a wrench into the process.

So, what exactly are these title problems, and how can title insurance protect you? Let’s break it all down in simple terms.

What Is a Property Title?

A property's title is essentially its legal record, showing who owns the home and whether there are any claims or legal rights attached to it. When you buy a new home, you want to ensure the title is clean, meaning there are no disputes, unpaid debts, or hidden surprises tied to it.

This is where title searches and insurance come into play.

Common Title Issues Homebuyers Face

Unfortunately, title problems aren’t just rare mishaps—they happen more often than you’d think. Here are some of the most common title issues that could appear when purchasing a property:

1. Liens Against the Property

A lien is a legal claim placed on a property due to unpaid debts. If the previous owner had outstanding taxes, contractor fees, or mortgage payments, creditors could still have a hold on the home.

Why is this a problem?
Because once you take ownership of the property, those unpaid debts could become your problem! No one wants to inherit someone else's financial burdens accidentally.

2. Errors in Public Records

Even a small mistake in the legal documents related to a property can cause big issues. Typos, incorrect property descriptions, and filing errors happen more often than people realize.

What does this mean for homebuyers?
A simple clerical error can delay ownership transfers, impact your mortgage approval, or even lead to disputes down the line.

3. Unknown or Missing Heirs

Imagine this scenario: You buy a home, move in, and suddenly, someone shows up claiming they’re an heir to the property. What now?

This situation can occur when a previous owner passes away without a clear will, and distant relatives (or unknown heirs) later step forward to claim rights to the property. If their claim holds up in court, you could be in for a legal battle.

4. Forgery and Fraud

Real estate fraud is real, and it’s more common than we’d like to admit. Some cases involve forged signatures on property documents or fake sellers trying to transfer ownership of homes they don't actually own.

How does this affect buyers?
If someone falsely sells a home using forged documents, the rightful owner could come back to reclaim the property. That means you could lose your home without compensation.

5. Survey or Boundary Disputes

Sometimes, property lines aren’t as clear as they appear on paper. If there’s a discrepancy between legal property descriptions and actual land boundaries, it can lead to disputes with neighbors, city officials, or previous owners.

You might think you own a portion of land, but later, you find out it's part of a neighbor’s property—or worse, a government easement.

6. Unpaid Taxes and Special Assessments

A home might come with a history of unpaid property taxes or special assessments that weren’t properly recorded. If these debts weren’t settled before the sale, the new owner (you) might be responsible for them.

How does this happen?
Tax records can sometimes be outdated or misfiled. Without a thorough title search, these hidden costs can become a nasty surprise.

7. Easements and Restrictions

Easements allow others to use a part of your land for specific purposes (like a utility company needing access to power lines). Some homes also have deed restrictions, which limit what you can do with the property.

Why does this matter?
If you’re planning renovations, landscaping, or expansions, these restrictions could affect your ability to move forward with those plans.

How Title Insurance Protects You

Now that we’ve covered the major title issues, the big question is: How do you protect yourself? This is where title insurance comes in.

Title insurance provides financial protection against defects in a property’s title, ensuring buyers and lenders aren’t held responsible for past ownership problems. Let’s dive into how it works.

Types of Title Insurance

There are two primary types of title insurance policies:

1. Lender’s Title Insurance

- Required by most mortgage lenders
- Protects the lender's financial interest in the property
- Covers loan-related title defects

2. Owner’s Title Insurance

- Optional (but highly recommended)
- Protects you, the homebuyer, from title claims
- Covers legal fees if you’re taken to court over a title dispute
- A one-time payment that lasts as long as you own the home

What Does Title Insurance Cover?

Title insurance provides coverage for:

✅ Undisclosed liens – If past debts weren’t resolved, title insurance steps in.
✅ Forgery and fraud – If someone faked a signature or forged documents, your policy protects you.
✅ Errors in public records – Clerical mistakes won’t become your financial burden.
✅ Unknown heirs and ownership claims – If someone unexpectedly claims rights to your home, title insurance helps protect your investment.
✅ Boundary disputes and property access rights – If legal battles arise over property lines, you won’t be left footing the bill.

Why You Shouldn't Skip Title Insurance

Some homebuyers hesitate to buy title insurance because it’s optional for owners. After all, purchasing a home is already expensive—why add another cost?

Here’s why skipping it can be a major financial risk:

🔹 Legal battles are costly – If a dispute arises, you could spend thousands on attorney fees alone.
🔹 Past debts can become your responsibility – Unpaid taxes, liens, or contractor fees could fall into your lap.
🔹 Peace of mind is priceless – Knowing your home is secure allows you to focus on making it yours without legal worries.

Would you drive a car without insurance? Probably not. The same logic applies to your home—it’s too big of an investment to leave unprotected.

Final Thoughts

Buying a home is one of the most significant investments you’ll ever make, so protecting it should be a top priority. While a title search helps uncover potential problems, it’s not foolproof—some title defects remain hidden until years later.

That’s why title insurance is a smart move. It safeguards your home, your finances, and your future. At the end of the day, the small cost of title insurance is nothing compared to the financial risks you might face without it.

So, if you're buying a home, make sure to dig deep into the title history and invest in title insurance—it’s the safety net every homeowner needs.