Selling an inherited house seems easy enough on paper. Families fix up the place, accept an offer and expect the closing to wrap up fast. However, the title search can sometimes uncover issues that no one knew existed. Ownership records may not clearly identify the person authorized to sell the property, creating issues that must be resolved before the transaction can move forward.
A title issue rarely stops the sale permanently, but it can delay the closing until the ownership records or other legal concerns are resolved.
Why do inherited homes have title issues?
When a homeowner passes away, updating ownership title does not happen automatically. Probate documents, estate records or other legal filings may be necessary to establish who has the authority to sell the home.
Families might not realize there is an issue until a buyer’s company performs a title search.
Common title issues that might delay the closing
Every property has a different ownership history. However, inherited homes often involve some common title issues, including:
- Ownership records that were never updated
- Missing probate and estate documents
- Questions about who has the legal authority to sell the property
- Liens, unreleased mortgages or errors in recorded deed
Finding any of these issues does not mean that the sale cannot take place. It usually means that the issue should be resolved before the transaction can close.
Addressing the concern before listing the property
Reviewing any potential ownership or title issues before putting the inherited house on the market can help avoid unexpected delays later. Spotting these concerns early gives families some time to address the issues before a buyer sets a closing date.
A residential real estate attorney can review the property’s ownership history, identify issues that may affect the transaction and explain the steps available to address them. Completing any necessary estate filings or title-related steps early may reduce the risk of delays after the property goes under contract.