Understanding Title Issues in Maryland Real Estate
DK Law Group helps Maryland buyers and sellers resolve title issues for a smooth real estate closing.
Learn how title problems can delay or derail real estate deals—and what you can do to resolve them quickly and legally.
Whether you’re buying your first home or closing your hundredth deal, real estate transactions in Maryland always hinge on one critical detail: clear title.
Title issues may not be as flashy as mortgage rates or home inspections, but they’re one of the most common reasons closings are delayed—or canceled altogether. Without a clean title, the buyer doesn’t legally own the property, and the deal can’t move forward.
In this post, we’ll break down what title issues are, why they happen, how they’re resolved in Maryland, and why working with a reliable title company can make all the difference.
What Is a Title in Maryland Real Estate?
In real estate, “title” refers to the legal right to own and use a property. A clear title means there are no outstanding claims, liens, or disputes that affect the buyer’s ownership.
Before any transaction is finalized, a title search is conducted to confirm the legal owner, identify any existing encumbrances, and ensure the property can be transferred without legal risk.
This search is handled by a title company or real estate attorney and is a standard part of every Maryland closing.
Common Title Issues That Can Affect Your Property
Title problems often go unnoticed—until they cause delays. Some of the most common title issues in Maryland include:
Unpaid property taxes or municipal liens
Old mortgages or home equity lines of credit that were never released
Clerical or recording errors in past deeds
Unknown heirs or contested ownership
Easements, boundary disputes, or encroachments
Judgment liens from unpaid debts or lawsuits
Fraud or forged signatures in previous transfers
While some of these issues can be resolved quickly, others require legal action—especially if there are multiple parties or claims involved.
If you’re planning larger real estate strategies, like transferring property to a trust, it’s smart to stay informed. Learn why this is the year you create a land trust and how it can shield your property investments.
How Maryland Title Issues Are Resolved
Resolving title problems depends on the nature of the issue. In most cases, the title company or attorney will take steps such as:
Clearing liens by paying off outstanding debts or negotiating with creditors
Filing corrective deeds to fix recording mistakes
Initiating a quiet title action in court to settle ownership disputes
Ordering a boundary survey to resolve line or easement issues
Working with prior owners, lenders, or heirs to obtain necessary releases
Because Maryland has strict standards for recordation and title transfer, even minor defects must be addressed before settlement.
Why Title Insurance Is So Important
Even after a thorough title search, not every risk can be discovered. That’s why title insurance is critical for buyers and lenders.
There are two types of title insurance:
Lender’s title insurance, which protects the mortgage lender
Owner’s title insurance, which protects the buyer’s interest in the property
Title insurance can cover:
Errors in public records
Undisclosed or missing heirs
Fraud or forgery
Unreleased prior mortgages
Legal challenges to your ownership
Beyond title issues, protecting your property portfolio requires broader risk management. Explore the Top 5 Insurance Policies Every Property Owner Should Have to ensure comprehensive protection.
Maryland’s Legal Requirements for Title and Settlement
In Maryland, a licensed title agent or attorney must conduct the closing. This process includes:
Reviewing the title search
Coordinating the payoff of existing loans
Ensuring taxes, utilities, and fees are paid
Recording the new deed and mortgage with the county
Disbursing funds to all parties
Buyers are free to choose their title company—working with an experienced, responsive local provider can help spot and solve issues early.
Preventing Delays: Best Practices for Buyers and Sellers
To avoid last-minute surprises at the closing table, follow these tips:
Order the title search early, especially if the property has a complex history
Communicate openly with your title company or attorney about any known issues
Resolve open permits or unpaid taxes before listing or purchasing
Review the title commitment carefully and ask questions if anything seems unclear
Work with a trusted title company that has experience navigating Maryland law
If your real estate plans involve large gains or business investments, understanding tax impact is vital. Learn how a 1031 exchange works to defer capital gains taxes on investment properties.
When to Involve a Real Estate Attorney
If a title issue involves litigation, missing parties, or conflicting legal documents, it’s wise to consult a real estate attorney. Legal intervention may be necessary for:
Filing quiet title actions
Drafting corrective deeds or affidavits
Interpreting complex legal descriptions or easements
Negotiating lien releases or settlements
Our team at DK Law Group works alongside Maryland title professionals to ensure clean transfers and resolve disputes efficiently.
Need help with a title-related legal issue? Contact us here.
Final Thoughts: Stay Ahead of Title Issues in Maryland Real Estate
Understanding title issues in Maryland real estate helps you avoid common pitfalls, protect your investment, and move toward a smooth, successful closing.
A proactive approach—including a reliable title partner and experienced legal support—can help you resolve problems before they become deal-breakers.
Learn more about the title process or start your next transaction with a trusted Maryland title company today.