Title Issues That Kill Deals (and How to Spot Them Early)
Jennifer Davidson,
Owner | Office Manager | Senior Escrow Officer
Most deals don’t fall apart because of obvious problems.
They fall apart because of hidden ones.
And nothing is more “hidden” in a transaction than title.
It’s not something buyers think about.
It’s not something sellers always fully understand.
And for many agents, it’s something that only gets attention when there’s already a problem.
But when title issues show up, they don’t just slow deals down.
They stop them.
Let’s break down the most common title issues we’re seeing across Orange County—and how to identify them early enough to keep your deals alive.
At its core, title is about ownership.
It answers one simple question:
Does the seller have the legal right to transfer this property—and are there any claims against it?
Before a deal can close, title must be clear.
That means:
If something is unclear or unresolved, escrow can’t close.
Unlike inspections or appraisals, title issues aren’t visible.
You won’t see them during a showing.
They won’t come up in a walkthrough.
They only surface once escrow is underway—and a title report is reviewed.
By that point, the deal is already in motion.
And now, instead of moving forward, you’re solving a problem that could have been identified earlier.
While every situation is different, a few patterns show up repeatedly in Orange County transactions.
This is the most common issue.
Liens can come from:
These must be resolved before closing—usually by being paid off through escrow.
How a property is held matters.
We often see complications when:
If ownership isn’t clear, the transaction can’t move forward.
These transactions require additional steps.
Issues can arise when:
These deals can close—but they require careful handling.
Not all issues are financial.
Some relate to how the property can be used.
Examples include:
While these don’t always stop a deal, they can raise concerns that need to be addressed.
Sometimes, the issue is simply incorrect information.
These can usually be fixed—but they take time.
Title issues don’t just create work—they create uncertainty.
And uncertainty is what causes deals to fall apart.
Here’s how it plays out:
Even when the issue is solvable, the perception of risk can be enough to derail the deal.
The best agents don’t wait for title problems to appear.
They anticipate them.
Here’s how:
As soon as the preliminary title report is available, review it.
Don’t assume everything is clean.
Look for:
Early awareness creates options.
Before listing—or early in the process—dig deeper.
The more you know early, the fewer surprises later.
Title issues aren’t common—but they’re not rare either.
Prepare your clients by letting them know:
Prepared clients stay calm when challenges arise.
Your escrow team is your first line of defense.
Strong communication here is critical.
Time matters.
Delays in response create bigger delays in closing.
Title issues aren’t the most common problem in a transaction.
But when they show up, they’re often the most disruptive.
The agents who handle them best aren’t surprised by them.
They’re prepared.
They ask better questions.
They move faster when something surfaces.
If you want more deals to close smoothly, don’t just focus on what’s visible.
Pay attention to what’s underneath.
Because that’s where some of the biggest risks—and opportunities—live.
About the Author
Jennifer Davidson, Sr. Escrow Officer and owner of Prosper Escrow, has spent nearly two decades mastering the art of escrow. Since beginning her career in 2006, her natural talent, attention to detail, and commitment to excellence have made her a trusted leader in residential sales, refinances, probate sales, short sales, mobile home transactions, and co-ops.
