A property deed is a legal document that transfers ownership of real estate. If the deed is flawed or incomplete, it can create serious problems during a real estate transaction, especially at closing.
When buying or selling a home in Connecticut, the title must be clear. That means the property’s legal ownership must be free of disputes, claims or defects. If a problem with the deed is found, the closing can be delayed or even cancelled.
When deeds are inaccurate
Common deed-related issues include:
- Misspelled names or incorrect legal descriptions
- Missing signatures or notary stamps
- Gaps in the chain of title
- Deeds not properly recorded
- Use of incorrect deed types
These issues can raise questions about who legally owns the property.
How deed issues affect closing
Before closing, a title search is completed to confirm legal ownership. If a deed issue is found, the title cannot be insured until it is resolved. Without title insurance, most lenders will not approve the mortgage, and the sale cannot move forward.
Some problems can be fixed quickly, while others may take more time and require legal filings.
Common remedies to deed complications include filing a corrective deed with the proper names or legal description. This corrects errors such as misspelled names or inaccurate property details.
Another solution is recording missing documents or obtaining any required signatures that were overlooked when the deed was originally prepared.
In cases where there are ownership disputes or unclear records, filing a quiet title action may be necessary. This legal process helps to formally resolve any competing claims and confirm rightful ownership.
Addressing these issues early helps avoid delays and complications during the closing process. You may also want to seek legal guidance.