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Title Issues and How They Are Cured

One page per defect: how it is found, how it is cured, what it costs, and who pays.

What is a title issue, and what happens when the search finds one?

Quick Answer

A title issue is anything in the public record that clouds the seller's ownership or attaches to the property: an unreleased mortgage, a judgment, an open permit, a boundary problem. Most are cleared before closing. The question on any given file is whether it stops the deal, moves the date, or gets escrowed around.

Which title issues stop a closing?

Which title issues move the closing date?

Who pays to clear a title issue?

Ordinarily the seller, because a standard New York contract obligates the seller to convey marketable title, and most defects arose during the seller’s ownership or a predecessor’s. Where the cure will not fit the closing date, the parties commonly agree to a seller-funded escrow with a defined release condition rather than moving the cost to the buyer.

How early do title issues surface?

Most surface five to fifteen days before the scheduled closing, when the searches come back and the exceptions are read. That is exactly when there is the least time to resolve them, which is the argument for ordering searches early rather than on the lender’s schedule.

Where should you go next?

Have a closing coming up?

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Legal Disclaimer: These pages are general information about New York practice. They are not legal advice, they do not account for the terms of any particular contract, building or transaction, and reading them does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.