When buying or selling property, the excitement of a new chapter can quickly turn into a nightmare if title issues rear their ugly head. Real estate broker Gia Silva sits down with Andrea Baleta from First American, a title expert with over 25 years of experience, to unpack the seven most shocking title issues that can derail a real estate transaction and provide practical advice on sidestepping these real estate disasters.

What Is Title—and Why Is It So Important?

Title insurance protects homeowners and lenders against problems related to property ownership and lingering debts from previous owners. As Andrea explains, while homeowners insurance covers the structure, title insurance secures your actual land—guarding against past ownership claims or unresolved financial burdens.

Common Title Nightmares and Their Lessons

1. Ownership Confusion Mix-ups often occur when property changes hands or interests aren't updated in trusts. A forgotten update to a trust can create clouds on title and delay or endanger sales, especially if a former co-owner refuses to cooperate.

2. Unforeseen Liens Adding friends or partners to a title? Think again. One jaw-dropping story involved a woman adding her boyfriend to the title so he could enjoy free golf—only to inherit his tax liens when their relationship ended. Always check for liens before making someone a co-owner.

3. Easement Nightmares From shared driveways to city utility access, easements can limit property use. Some buyers have lost pools and backyard investments after failing to review preliminary reports showing easements.

4. Public Record Errors Mistakes like incorrect parcel numbers or legal descriptions can haunt homeowners for years. Even contractors can accidentally (or unknowingly) attach liens to the wrong property if documents aren’t meticulously prepared.

5. Unreleased Mortgages Old, paid-off loans often linger on title if lenders don’t record a reconveyance. This can cause last-minute delays, forcing sellers to chase paperwork down to prove debts are cleared.

6. Probate Problems If a property isn't in a trust or shared jointly, it can get stuck in probate—a costly and time-consuming court process after an owner passes away. Regularly update your trust and make sure others know where copies are kept.

7. Real Estate Fraud Fraudsters are increasingly sophisticated. Free-and-clear properties are favorite targets, but proactive title companies like First American now notify property owners of any unusual preliminary report activity to help catch scammers before disaster strikes.

The Key Takeaway: Be Proactive

The thread running through all these stories? Proactivity pays off. Know what’s on your title, work with reputable professionals, and don’t be afraid to double-check. Reviewing preliminary reports, updating trusts, and monitoring title insurance can prevent costly delays—and bigger disasters.

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