1. Unresolved Liens and Encumbrances
Liens are legal claims against a property due to unpaid debts, such as taxes, contractor fees, or court judgments. These claims must be resolved before a property can be sold. Failure to address these encumbrances can delay or derail the closing process.
2. Errors in Public Records
Clerical mistakes in public records, such as misspelled names, incorrect legal descriptions, or omitted owners, can affect property rights and cause legal claims. These errors can set back a closing since corrective actions would likely need to be undertaken before finalizing the transaction.
3. Ownership Disputes and Missing Heirs
Unresolved claims from missing heirs or previous owners can complicate real estate transactions. If a property’s ownership history is unclear, potential heirs or undisclosed parties may emerge with claims to the property, leading to legal challenges that delay closing.