When a real estate title company dropped the ball, chaos ensues, and the carefully planned closing process can quickly turn into a nightmarish comedy of errors.

When it comes to the intricate process of buying or selling a home, every detail matters. However, what happens when the title company dropped the ball? Here we’ll review real-life scenarios and see the implications of when the title company fails to meet expectations. From delayed closings to potential legal issues, understanding these challenges can help you navigate the complexities of real estate transactions more effectively. Delays can lead to frustration, anxiety, and uncertainty for all parties involved, as moving schedules and financial arrangements hang in the balance. Mistakes at a title company during a closing can range from minor clerical errors to more significant oversights that may have legal and financial implications. Join us as we uncover what happens “When the Title Company Dropped the Ball”.

Documents not Recorded or Mis-Recorded
There are many documents that may need to be filed for a closing or sometimes just one. Either way, these documents are filed and recorded by regular people and mistakes can happen. Some mistakes that can occur on documents for closing can include; misspelled names, incorrect legal descriptions, or incorrect addresses. Corrective action will need to take place. These mistakes can take anywhere from a few days to weeks to get rectified depending on what the issue at hand was.

Unresolved Liens or Judgments
The title company is responsible for conducting a title search to identify any outstanding liens or judgments against the property. If they fail to discover such encumbrances, the
buyer could inherit these financial obligations. If a lien or judgment is unrecorded, it will not be discovered, but if recorded, then they will need to have payoffs obtained and releases completed. Failure to do so can create problems for the new owner. This is just one example of why having title insurance is a must.

Failure to Obtain Proper Signatures or Notarization
During the closing process, various documents need to be prepared and signed. The title company must ensure that all necessary paperwork is complete and accounted for to avoid future disputes. Certain documents require specific signatures and notarization to be valid. Documents may be signed in house or a mobile notary may be used, either way the title company’s oversight in obtaining these signatures or notarizing documents properly can invalidate the paperwork.

Mismanagement of Funds
A title company is responsible for distributing funds to various parties involved in the closing, such as the seller, real estate agents, mortgage lenders, and other service providers. Mis-allocation of funds can happen when the title company mistakenly sends money to the wrong recipient or fails to disburse the correct amounts to the intended parties. Any mishandling or misappropriation of funds can lead to serious legal and financial consequences for all parties involved.

Moreover, the dropping of the ball can trigger a domino effect of errors and misunderstandings. We see the critical role of title companies in real estate transactions and the potential consequences when they fail to perform effectively. It’s essential to work with a reputable and experienced title company to minimize the risk of these mistakes and ensure a smooth and error-free closing process. Buyers and sellers should also carefully review all closing documents to catch any potential errors and seek legal advice when necessary. Understanding these challenges empowers home-buyers and sellers to navigate transactions more confidently and protect their interests in the process.


Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. 

Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: 5 Reasons to Consider Purchasing a New Manufactured Home

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