Can You Find Problems after Escrow?

An escrow account is used in the completion of a real estate transaction. The escrow agent is responsible for verifying that the seller has a clear title to the property being sold. It is possible to find problems in the title after escrow.


It is possible to have a lien placed on the property that is being sold. In order for the title to transfer to the buyer, a lien must be satisfied by the seller. Liens can be for back taxes owed or for payment to contractors that worked on the property.

Unsatisfied Mortgages

A seller could have had a previous mortgage on the property that was replaced by a different mortgage. If the first mortgage was not paid in full, the lender can still have a claim against the property. Sometimes the lender of the first loan does not file a release after being paid off. A release will need to be secured before the sale can occur.

Unclear Title

If a seller previously owned a property with a spouse from whom he or she is now divorced, the ex-spouse has a claim to the title of the property. If the property is sold, the former spouse can make a legal claim to the property. This claim would supersede the rights of the buyer.

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