Most closing delays aren’t caused by anyone doing their job badly. They’re caused by something in the property’s history that nobody knew about until the title search came back. The good news for attorneys and brokers is that the list of usual problems is short, and each one has a known path to resolution.
Why defects surface late
A title search looks at the whole recorded history of a property, not just the current owner. Problems created ten or twenty years ago stay in the record until someone formally clears them. The later the search is ordered, the less time there is to do that.
The usual suspects
- Open permits and building violations. Work done without a final sign-off from the Department of Buildings, or open violations on the property. The Real Deal reported this year that these are stopping more New York City deals. Resolution usually means closing out the permit, curing the violation, or escrowing funds at closing.
- Mortgages paid off but never satisfied. The debt is gone, but the satisfaction was never recorded. The fix is a recorded satisfaction from the lender or its successor, which can take weeks if the original lender no longer exists.
- Judgments and liens. Judgments, tax liens or mechanic’s liens against the seller, and name matches that have to be ruled out with affidavits.
- Estate gaps in the chain of title. Property that passed through an estate without proper authority from Surrogate’s Court, or without every heir conveying their interest.
- Errors in a prior deed. A wrong legal description, a missing signature or a misspelled name, fixed with a corrective deed.
What attorneys and brokers can do to shorten the timeline
- Order title as soon as the contract is signed, not after the commitment letter.
- Ask the seller early about renovations, prior loans and how the property was acquired.
- Request payoff letters for every open mortgage at the start, not the week before closing.
- If the property came through an estate, get the Surrogate’s Court paperwork in hand before the search comes back.
None of these defects is unusual. What makes them costly is timing. Found in week one, most are paperwork. Found in the last week, they’re a new closing date.
Start the search early
United American Title Agency reviews every search with the owner’s three decades of real estate law experience behind it, and flags what needs clearing as soon as it appears. We work with attorneys, brokers and lenders on residential and commercial files in New York and Florida.
Explore our services for attorneys, order title, or contact United American Title Agency at (718) 441-2027.
Sources: The Real Deal, “Old permits bring new headaches for NYC agents, sellers,” January 2026; Minchella & Associates, “What a Cloud on Title Actually Means and Why It Delays Closings.” This article is general information, not legal advice.