Presented by Advantage Title Group | Florida
Whether you’re representing the buyer or processing the loan, identifying potential title issues early can save the deal—and your client’s trust. Here are the top title red flags we see derail closings in Florida, and how to spot them before they hit the wire.
1. Unreleased Mortgages or Liens
Spot it early: Review title commitment Schedule B and ask the seller if they’ve paid off all loans—including HELOCs and private loans.
2. Deceased Owner(s) on Title
Spot it early: If the seller says they inherited the property or a relative passed away, probate might be needed. Ask: “Who is currently on title, and how did you come to own the property?”
3. Marital Status Conflicts
Spot it early: In Florida, a married seller cannot sell a homestead property without spousal joinder, even if the spouse isn’t on the deed. Always ask if the seller is married and if the property is their primary residence.
4. Power of Attorney (POA) Issues
Spot it early: If someone plans to sign using a POA, the title company needs to approve it in advance. Outdated or improperly executed POAs are often rejected.
5. Undisclosed Trusts or LLCs
Spot it early: If the property is in a trust or entity name, you’ll need verifying documents. Ask the seller: “Is the property titled in your name, or under a trust/company?”
6. FIRPTA Withholding Traps
Spot it early: If the seller is a foreign national, FIRPTA withholding (up to 15%) may apply. Ask: “Are you a U.S. citizen or resident for tax purposes?”
7. Outstanding Judgments or Child Support Liens
Spot it early: These may not be disclosed until title search. Be extra cautious with sellers who have known financial hardship or past legal issues.
8. Boundary or Survey Disputes
Spot it early: Ask if there’s been recent construction, fencing, or disputes with neighbors. A new survey may be needed.
9. Open Permits or Code Violations
Spot it early: Title companies may flag these post-search. Ask: “Have you had any major work done on the home? Was everything finalized and inspected?”
10. HOA or Condo Estoppel Delays
Spot it early: These can delay closing if not ordered early. Ask listing agents for HOA contact details at contract signing.
✅ Want to Avoid Surprises?
Tell us your deal details early, and our team at Advantage Title Group will pre-check for potential risks—before they become delays.
