8 Common Title Curative Issues in Real Estate Explained

Title curative issues are problems with a property's ownership history or legal status that must be resolved before the property can be sold with clear title. These issues show up during title searches and can range from simple paperwork errors to complex legal disputes.

Understanding these common title problems helps you recognize them in deals, know what questions to ask, and understand what needs to be fixed before a property can transfer ownership cleanly.

Whether you're an investor, homebuyer, or real estate professional, knowing these 8 issues will help you navigate title challenges more confidently. Here are the most common title curative issues you'll encounter:

1. Liens and Judgments

Liens and judgments are legal claims against a property for unpaid debts. When someone owes money—whether to the government, a contractor, or a creditor—and doesn't pay, the creditor can file a lien against their property. This lien "attaches" to the property and must typically be paid before the property can be sold with clear title.

Common types include:

• Property tax liens — Unpaid local property taxes
• IRS tax liens — Federal tax debt
• Judgment liens — From court judgments (lawsuits, credit card debt, etc.)
• Mechanic's liens — Filed by contractors or suppliers who weren't paid for work
• HOA liens — Unpaid homeowners association fees

Once a lien is recorded in public records, it becomes part of the property's history even after it's eventually paid off. Title companies identify these during their search, and they must be addressed—either paid in full, negotiated down, or legally resolved—before closing.

2. Easements

An easement is a legal right that allows someone other than the property owner to use a portion of the property for a specific purpose. Easements don't transfer ownership—they simply grant usage rights.

Common types include:

• Utility easements — Allow utility companies to access power lines, gas lines, water/sewer infrastructure
• Access easements (right of way) — Give others the right to cross the property to reach their own land
• Easements by necessity — Created when a property would otherwise be landlocked with no access
• Easements by prior use — Based on historical use patterns, even without formal documentation
• Implied easements — Created when one property owner does something that benefits adjacent land (like a shared driveway)

Easements can be recorded in public records or unrecorded (prescriptive easements based on long-term use). They remain with the property when it's sold and can affect how the property can be developed or used.

3. Mortgage Liens

A mortgage lien is the security interest a lender holds on a property when they provide financing for its purchase. It's the most common type of lien and is expected in most real estate transactions.

When a property is sold, any outstanding mortgages must be addressed. Typically, the existing mortgage is paid off from the sale proceeds at closing, and the lien is released. However, issues arise when:

• Multiple mortgages exist (first, second, third mortgages)
• The mortgage balance exceeds the property's value
• Mortgages weren't properly released after being paid off
• There are questions about lien priority (which lender gets paid first)

Proper title examination ensures all mortgage liens are identified and that the proper payoff amounts are calculated before closing.

4. Errors in Legal Descriptions

The legal description is the official written description of a property's exact location and boundaries. It's more precise than a street address and is used in deeds, titles, and legal documents. Errors in legal descriptions can create serious title problems.

Common mistakes include:

• Misspelled street names or incorrect street numbers
• Wrong lot or block numbers
• Transposed digits in measurements
• Metes and bounds descriptions that don't mathematically "close"
• Property line descriptions that don't match physical features

Correction typically requires a scrivener's affidavit, corrective deed, or new survey, depending on the severity of the error.

5. Building Code Violations

Building code violations occur when property improvements don't comply with local building codes and regulations. These can go unnoticed for years until they're discovered during a property sale, inspection, or when someone reports them to authorities.

Common violations include:

• Unpermitted work — Additions, renovations, or structural changes done without required building permits
• Open permits — Work that was started with a permit but never completed or inspected
• Safety violations — Electrical, plumbing, structural, or fire safety issues that don't meet code
• Illegal conversions — Garages converted to living space, basements finished without approval

Building code violations can affect a property's insurability, financing eligibility, and legal occupancy. They may require expensive corrections to bring the property into compliance, or retroactive permitting if the work was done properly but without authorization.

6. Boundary and Survey Disputes

Boundary disputes arise when there's disagreement or uncertainty about where one property ends and another begins. These issues often surface during property sales when new surveys are conducted.

Common causes include:

• Fences or walls that don't align with legal property lines
• Encroachments — Structures (sheds, driveways, buildings) that cross property lines
• Conflicting surveys from different time periods
• Discrepancies between recorded plats and aerial maps
• Trees, landscaping, or natural features obscuring true boundaries

Related issues:

• Adverse possession claims — Neighbors claiming they've used land long enough to legally own it
• Unrecorded boundary agreements between previous owners
• Municipal mapping errors

Resolving boundary disputes typically requires a current survey, examination of historical records, and sometimes negotiation between neighbors or legal action to establish clear boundaries.

7. Missing or Invalid Signatures

Missing or invalid signatures create gaps in the chain of title because a previous transfer wasn't legally completed. All parties with an ownership interest must sign transfer documents for the conveyance to be valid.

Common scenarios include:

• Missing spouse signature — In many states, both spouses must sign even if only one is on title
• Unsigned heirs — When property passes through inheritance and not all heirs signed transfer documents
• Invalid corporate signatures — Corporate officers who lacked authority or weren't properly appointed
• Forged signatures — Discovered years after the fact
• Incompetent signers — Someone who lacked mental capacity when they signed

These issues mean a previous owner (or their heirs) may still have a legal claim to the property. Resolution requires tracking down missing parties to obtain corrective signatures, proving death and estate succession, or pursuing quiet title actions through the courts.

8. Undisclosed or Unknown Heirs

Undisclosed heirs are individuals who have a legal inheritance claim to a property but weren't identified or included when the property was transferred through an estate. This is particularly common when property owners die without a will (intestate).

Why this happens:

• The estate was never properly probated
• Family members didn't understand state inheritance laws
• Distant relatives weren't contacted or known about
• Heirs moved away and lost contact with the family
• Children from previous relationships weren't acknowledged
• Out-of-wedlock children with inheritance rights

When property passes through inheritance without proper legal proceedings, there's risk that unknown heirs could surface later and claim their ownership interest. Even decades after someone's death, an heir can potentially challenge property ownership if they were improperly excluded from the estate distribution.

This creates a cloud on title that prevents clear ownership transfer until all rightful heirs are identified and either convey their interest or have their claims legally resolved. For investors working heir property deals, Logan Fulmer's Distressed Property Acquisitions Facebook community is an excellent resource for learning strategies around locating and negotiating with heirs.

To understand the full process of finding and working with heirs on title issues, see our guide on Dirty Deeds & Heirship Strategy.

Unknown heirs are often the hardest defect to solve, because the heirship order decides who has to sign. Learn how heirship order works for deceased owners before you start contacting family members.

Working Through Title Curative Issues

These 8 title curative issues represent the most common problems that arise during real estate transactions. While they can seem complex, most are resolvable with proper legal assistance and documentation.

The key is identifying these issues early through comprehensive title searches. Once discovered, experienced title professionals and real estate attorneys can guide you through the resolution process—whether that means paying off liens, correcting documentation errors, obtaining missing signatures, or clearing more complex legal claims. For those looking to go deeper into curative title investing, McKlane Bobbit's Stride REI Group offers valuable insights on navigating these complex deals.

Understanding what these issues are and how they affect property ownership helps you make informed decisions about whether to proceed with a transaction and what steps are needed to achieve clear, marketable title. For a deeper dive into the skip tracing workflow for curative title work, check out our comprehensive guide: Skip Tracing for Curative Title & Dirty Deeds.