A title problem can delay a real estate closing, change the transaction's value, or stop the transaction altogether. If a title search reveals a lien, ownership dispute, recording error, or unexpected easement, you may need to resolve it before you can sell, refinance, or transfer the property. In some cases, the issue is fixable. In others, it changes whether the deal should move forward.
At Silverman & Jaffe, PC, we help clients in Walnut Creek, California, address real estate problems that can surface before closing or after a title report reveals something unexpected. If you are buying, selling, inheriting, or transferring property and a title issue has arisen, early legal review can help you understand whether the problem is minor, negotiable, or serious enough to affect your rights.
What a Title Issue Means in a Real Estate Transaction
A title issue is a legal question or defect that affects ownership of the property or the right to transfer it. In practice, that usually means the seller may not be able to convey clear title to you.
“Clear title” generally means ownership can be transferred without unresolved claims or defects that would expose the buyer to future disputes. A title company’s search often looks for recorded documents affecting the property, such as deeds, liens, judgments, easements, and tax matters. If the search finds a problem, that issue may appear as an exception on the preliminary title report rather than a matter the title insurer is willing to cover.
That matters because buyers, lenders, and title insurers do not look at title defects the same way. A buyer may still want the property, a lender may refuse to fund until the issue is cleared, and the title insurer may agree to insure only with exceptions that leave you exposed later.
Common Title Problems That Can Affect a Deal
Some title issues are routine and can be corrected with paperwork. Others point to deeper ownership or boundary disputes. Common problems include:
Deeds with errors in names, legal descriptions, or signatures
Undisclosed liens, including tax liens or contractor claims
Easements that limit how the property can be used
Boundary disputes or encroachments
Probate or trust transfer problems
Unknown heirs or competing ownership claims
Judgments recorded against an owner
Fraudulent or forged transfer documents
In California, mechanics liens can create major closing problems because a contractor, subcontractor, laborer, or supplier may assert a claim tied to work on the property. The rules governing these claims are technical, and the timing matters. The California Contractors State License Board provides a useful overview of how mechanics liens work in California.
Even when a title issue does not make the sale impossible, it can affect negotiations. A buyer may ask for repairs to title, a price reduction, added escrow instructions, or a delay while the issue is investigated.
Can You Still Close if There Is a Title Defect?
Sometimes, but it depends on the type of defect, the purchase agreement, the lender’s requirements, and whether the title company will insure over the issue.
A minor clerical error may be corrected quickly through a corrective deed or recorded affidavit. A lien payoff issue may be handled through escrow if the lien amount is known and can be satisfied at closing. But an ownership dispute, forged deed allegation, unresolved probate matter, or unclear legal description may require much more than a simple escrow fix.
This is often where legal analysis becomes critical. A title issue is not just a paperwork problem. It can affect whether the seller has authority to transfer the property, whether the buyer will receive what was promised, and whether future resale or financing may be affected.
When a dispute or defect goes beyond routine escrow corrections, representation from our real estate attorneys can help you evaluate the transaction documents, title report, and available remedies.
How Title Insurance Applies to Title Problems
Title insurance helps protect against certain covered title defects, but it does not make every problem disappear. This point can be easy to misunderstand.
In California, title insurance is generally regulated under the state’s insurance laws, and the California Department of Insurance explains what title insurance does and does not cover. A policy may protect against some hidden defects, such as certain unknown claims or recording problems. However, coverage depends on the policy terms, exclusions, and listed exceptions.
If a title report identifies a problem before closing, the insurer may exclude that issue from coverage unless it is resolved. That means you should not assume a policy will protect you from a defect already disclosed in the transaction. Reviewing the preliminary title report carefully is just as important as obtaining the policy itself.
What Buyers and Sellers Should Do When a Title Issue Arises
The first step is to identify exactly what the title report says and whether the issue is confirmed, curable, disputed, or the result of an error or misunderstanding. Not every title exception is a defect, and not every defect requires the same response.
If you are buying, you may need to decide whether to:
ask the seller to clear the issue before closing,
renegotiate the price or terms,
accept the known title exception or limitation, or
cancel the transaction if the contract allows.
If you are selling, you may need to gather prior deeds, payoff statements, trust documents, probate records, boundary information, or lien releases. Timing matters because some issues can be cured during escrow, while others may require court involvement or negotiations with third parties.
The practical risk is not limited to the current transaction. A rushed closing with unresolved title questions can create later disputes over ownership, financing, use restrictions, or resale value.
Knowledgeable Legal Guidance in California
At Silverman & Jaffe, PC, we assist clients with legal issues that can complicate California property transactions, including title disputes, ownership questions, transfer problems, and transaction-related document review. If a preliminary title report has raised concerns, we can help you assess the defect, understand how it affects your transaction, and determine whether the issue can be resolved through escrow, negotiation, corrective filings, or litigation.
We work with clients in matters involving purchases, sales, inherited property, trust-related transfers, and disputed interests in real estate. When needed, we can also help you evaluate the next step if a title problem threatens closing or creates a longer-term ownership dispute involving Walnut Creek real estate law matters.
If a title issue is affecting your transaction, contact us to discuss what the report means, what your options are, and what should be addressed before you sign the agreement or proceed with closing.
