Buying a home is a big deal. You save, you search, you sign a mountain of paperwork. But there’s one thing many people overlook: the property title. It’s easy to assume the title is just a formality, but mistakes here can cost you thousands. Some errors can even leave you with repair bills you never saw coming. If you want to avoid nasty surprises, you need to know what can go wrong with your property title. Here are eight common property title mistakes that can lead to repair bills you never planned for.
1. Ignoring Unreleased Liens
A lien is a legal claim against your property, often from unpaid bills or taxes. If the previous owner didn’t pay off a contractor or a tax bill, that lien can stick to your title. You might not even know it’s there until you try to sell or refinance. But here’s the kicker: some liens are tied to repairs or improvements. If the work wasn’t finished or was done poorly, you could be on the hook for fixing it. Always check for unreleased liens before closing. A title search can help, but don’t assume it’s perfect. Ask questions and get proof that all liens are cleared.
2. Overlooking Easements
An easement gives someone else the right to use part of your property. Utility companies, neighbors, or even the city might have access. If you don’t know about an easement, you could end up with a repair bill when someone digs up your yard to fix a pipe or install cables. Sometimes, easements aren’t obvious. They might be buried in old documents or not recorded at all. Always ask for a full easement report before you buy. If you skip this step, you could be paying to repair damage you didn’t cause.
3. Failing to Spot Boundary Disputes
Property lines aren’t always where you think they are. Fences, driveways, or even parts of a house can cross into a neighbor’s land. If you buy a home with a boundary dispute, you might have to move a fence, tear down a shed, or fix landscaping. These repairs can get expensive fast. A survey can help, but make sure it’s recent and accurate. Don’t rely on old maps or verbal agreements. If there’s any doubt, get a professional survey before you close.
4. Missing Unpermitted Work
Sometimes, owners make changes to a home without getting the right permits. Maybe they finish a basement, add a deck, or build a garage. If the work wasn’t permitted, it might not meet safety codes. When the city finds out, you could be forced to tear it down or pay for repairs to bring it up to code. This isn’t just a hassle—it can cost thousands. Always ask for permits and inspection records for any major work. If the seller can’t provide them, be cautious.
5. Not Checking for Unrecorded Deeds
A deed is the document that proves you own your home. But sometimes, deeds aren’t recorded properly. Maybe someone forgot to file it, or there was a paperwork error. If your deed isn’t recorded, someone else could claim ownership, or you could face legal trouble down the road. Worse, you might have to pay to fix problems caused by previous owners. Always make sure your deed is recorded with the county as soon as you close.
6. Overlooking Old Covenants and Restrictions
Some properties come with old rules, called covenants or restrictions. These might limit what you can build, how you can use your land, or even what color you can paint your house. If you break a rule, you could be forced to undo changes or pay for repairs. These rules can be decades old and easy to miss. Always ask for a copy of all covenants and restrictions before you buy. If you don’t, you could end up with a repair bill for something you didn’t even know was a problem.
7. Ignoring Flood Zone or Environmental Hazards
Titles sometimes miss important details about flood zones or environmental risks. If your property is in a flood zone and you don’t know it, you might skip flood insurance. Then, when a storm hits, you’re stuck with the repair bill. The same goes for properties near old industrial sites or with underground tanks. Cleanup and repairs can be huge. Always check flood maps and environmental records. FEMA’s flood map service is a good place to start.
8. Not Getting Title Insurance
Title insurance protects you from many of these mistakes. If someone claims they own your property, or if a hidden lien pops up, title insurance can cover your legal costs and repairs. But some buyers skip it to save money. That’s risky. Without title insurance, you’re on your own if something goes wrong. The cost is small compared to what you could lose. Always get title insurance, and read the policy to know what’s covered.
Protect Your Home—and Your Wallet
Property title mistakes can turn your dream home into a money pit. The good news is, you can avoid most of these problems with a little homework. Check for liens, easements, and boundary issues. Ask for permits and records. Make sure your deed is recorded. And don’t skip title insurance. Taking a few extra steps now can save you from costly repair bills later.
Have you ever faced a surprise repair bill because of a title mistake? Share your story or tips in the comments.
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