Before you can sell your home, the title has to be clean enough to pass clean ownership to the buyer. Most sellers have at least one thing to clear, and catching it early is the difference between a smooth closing and a last minute scramble. Let me explain.
Written by Anthony I. Shin, Esq., Principal and real estate attorney at Prime Title & Escrow
When I take on a sale, one of the first things I do is search the title to your property. The goal is to find anything that would get in the way of conveying clear ownership, while there is still time to fix it. Here is what that means and why it matters to you as the seller.
Clearing title means resolving anything that would stop you from giving the buyer clean ownership: your mortgage, an old lien, an unreleased loan, a judgment, or a boundary problem. Most of these are paid off or released at closing from your proceeds. The key is finding them early.
What clouds a title
A title can be clouded by more than just your current mortgage. Common issues include a home equity line you forgot was still open, a judgment lien from a creditor, a mechanic’s lien from a contractor who was not paid, unpaid property taxes, or an estate where the property was never properly transferred into the current owner’s name. Any of these can stall a sale if they surface too late.
The unreleased loan
One of the most common surprises is an old loan you actually paid off years ago, but which still shows against your property because the lender never recorded a release. It is harmless in the sense that you do not owe anything, but it has to be formally cleared before you can sell, and tracking down a release from a lender that may have merged or moved can take time. Finding it early is exactly why I search the title up front.
Why most issues are fixable
Here is the reassuring part: most title issues do not stop a sale. Liens and payoffs are usually handled at closing, paid from your sale proceeds and released, just like your mortgage, as I describe in the payoff statement. The problem is almost never that an issue exists. The problem is finding it the day before closing instead of weeks ahead, when there is no time to obtain a release.
The single best thing you can do as a seller is let me search the title as soon as you are under contract, or even before you list. That way, if there is an unreleased loan to chase, a judgment to resolve, or an estate matter to address, we have time to handle it calmly rather than racing the clock. A title problem found early is a non event. The same problem found late is what delays closings, as I cover in what can delay your closing.
Estate and ownership issues
Sometimes the cloud is about ownership itself, for example a property inherited but never formally transferred, or a co owner who needs to sign. These take a little more work and sometimes a probate step, which I cover in selling an inherited house. Again, the fix is usually straightforward when there is time to do it right.
It is also worth gathering a few things in advance if you have them: any paperwork showing loans you have paid off, the contact details for a lender you no longer deal with, and any documents about past work on the home. Small as they seem, these can speed up obtaining a release or resolving a question, and having them ready saves time when the clock matters.
Clearing title is most of the quiet work behind a seller’s closing, and done early it is invisible to you. Whether your property is in Virginia or West Virginia, I will search the title, surface anything that needs attention, and clear the way so you can sell with confidence.
Send me your address and contract and I will search your title early, so anything that needs clearing is handled well before closing.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
What does it mean to clear title before selling?
Clearing title means resolving anything that would prevent you from conveying clean ownership to the buyer, such as your existing mortgage, an old lien, an unreleased deed of trust, a judgment, or a boundary issue. These are handled before or at closing so the buyer receives clear title.
What kinds of issues cloud a title?
Common ones include an unpaid mortgage or home equity line, a judgment lien against the seller, a mechanic’s lien from unpaid contractors, an old loan that was paid but never formally released, unpaid taxes, or an estate matter where ownership was never properly transferred.
How do I find out if there is a problem with my title?
A title search reveals it. When you list with me as your settlement agent, I search the title early so any issue surfaces with time to fix it, rather than surprising everyone days before closing.
Can I sell if there is a lien on my property?
Usually yes. Most liens can be paid off and released from your sale proceeds at closing, so they do not stop the sale. The key is identifying them early so there is time to obtain payoffs and releases before settlement.
What is an unreleased deed of trust?
It is a loan that you paid off, but the lender never recorded a release, so it still appears against your property. It is common and fixable, but it has to be cleared before you sell, which sometimes takes time to chase down with the old lender.
This article is general information about clearing title in Virginia and West Virginia. It is not legal advice for your specific transaction, and what your title needs depends on your property’s history. Please confirm the details with me directly.