Title Issues in New Jersey Real Estate Transactions

Title issues are a common but often unexpected source of delay in New Jersey real estate transactions. Even after inspections are resolved and a mortgage is approved, problems related to title can prevent a closing from moving forward.

This page explains common title issues that arise in New Jersey real estate transactions, how they are identified, and why legal review is often required to resolve them before closing.

What “Title” Means in a Real Estate Transaction in New Jersey

In a New Jersey real estate transaction, “title” refers to the legal ownership of the property and the seller’s ability to convey clear, marketable ownership to the buyer at closing. This includes not only who owns the property, but also whether there are liens, claims, or other defects affecting ownership.

Before closing, a title search is conducted to identify any issues that could interfere with the transfer of ownership. Title issues must typically be resolved before a transaction can proceed to closing.

Common Title Issues in New Jersey Real Estate Transactions

Title searches frequently uncover issues that must be addressed before a property can be transferred. Some issues are straightforward and easily resolved, while others require legal review, additional documentation, or corrective action.

In New Jersey transactions, title issues often involve prior liens, recording errors, ownership questions, or unresolved matters from earlier transfers. Identifying and resolving these issues early is critical to avoiding closing delays.

• Outstanding mortgages or prior liens
• Unpaid judgments or tax liens
• Errors or omissions in prior deeds
• Boundary or survey discrepancies
• Easements affecting use or access
• Open permits or unresolved municipal issues
• Estate or probate-related ownership defects
• Missing or improper legal descriptions

How Title Issues Are Discovered and Addressed

Title issues are typically identified through a title search conducted before closing. The search reviews public records to confirm ownership and uncover liens, claims, or defects that may affect the transfer of title.

Once an issue is discovered, it must be addressed before closing can occur. Depending on the nature of the problem, resolution may involve obtaining payoff information, recording corrective documents, securing releases, or addressing legal defects that require attorney involvement.

How Title Issues Can Delay or Prevent Closing

Title issues can delay a closing when they cannot be resolved within the scheduled time frame. Some issues require additional documentation, third-party cooperation, or corrective filings that take time to complete.

In certain situations, unresolved title defects may prevent a transaction from closing altogether. Buyers and lenders generally require clear and marketable title, and transactions may be postponed or cancelled if title issues cannot be cured before the closing date.

Seller Responsibilities for Clearing Title in New Jersey

In most New Jersey real estate transactions, sellers are responsible for delivering clear and marketable title at closing. This generally includes resolving liens, correcting defects in prior conveyances, and addressing issues identified in the title search.

Sellers may be required to take affirmative steps before closing, such as paying off outstanding obligations, recording corrective documents, or cooperating with legal efforts to cure title defects. Failure to clear title can result in closing delays or contractual disputes.

Why Legal Guidance Matters for Title Issues

Title issues often involve legal rights, recorded interests, and obligations that are not always obvious from a title report alone. Buyers and sellers may underestimate the complexity of resolving defects or misunderstand the consequences of proceeding without clear title.

An experienced New Jersey real estate attorney can help identify material title issues, coordinate with title companies and other parties, and guide clients through the steps necessary to resolve problems so that a transaction can close properly.

Unresolved title defects are a frequent reason real estate closings are delayed or postponed in New Jersey, even when inspections and financing have already been addressed.