Title and escrow issues are one of the most common causes of last-minute closing delays.
Most title problems are discoverable early if you open escrow immediately and review the title report carefully.
Hard money can move fast, but title must be clean enough to insure the lender’s position.
If you wait to deal with liens, ownership issues, or entity signing authority, you lose time and leverage.
The best strategy is simple: open title early, surface issues early, and solve them before you’re “ready to fund.”
Use this guide to prevent title from becoming the bottleneck on an investor closing.
At a glance
- Open escrow immediately after contract acceptance
- Review the preliminary title report early
- Liens, judgments, and unpaid taxes are common issues
- Entity signing authority problems stall closings
- Solve title issues before valuation and final docs
- Clean title coordination is a competitive advantage
What title and escrow actually do
- Title verifies ownership and identifies claims against the property (liens, judgments, taxes).
- Escrow coordinates the transaction: collects documents, ensures conditions are met, and handles funds at closing.
For a hard money closing, both must confirm the lender can be properly secured and insured.
The most common title issues that delay closings
- Unreleased liens or paid-off loans still showing on title
- Tax liens and unpaid property taxes
- Judgments against the owner
- Probate or inheritance ownership issues
- Divorce or title transfer disputes
- HOA [Homeowners Association] liens or unpaid dues
- Unpermitted work (can complicate underwriting and insurance)
- Chain of title errors and clerical issues
The fast close process (what to do in order)
- Open escrow immediately and request the preliminary title report.
- Review for liens and ownership clarity within 24–48 hours.
- Identify cures: payoff letters, releases, recorded satisfactions, probate steps.
- Confirm entity structure: LLC [Limited Liability Company] name, signing authority, operating agreement, EIN [Employer Identification Number].
- Coordinate with lender conditions so underwriting and title move in parallel.
Entity signing authority: the hidden delay most investors miss
If you’re buying in an LLC [Limited Liability Company], escrow may require:
- operating agreement
- articles of organization
- authorized signer resolution
- identification for signers
- EIN confirmation
If these are missing, closing slows down even when the deal is approved.
Next step
Hard money program: https://ambitionlending.co/hard-money-loans/
Submit a deal: https://ambitionlending.co/contact/
Frequently Asked Questions
What is the first thing I should do after getting a contract accepted?
Open escrow immediately and request the preliminary title report so you can surface issues early.
What title issues are most common on investor deals?
Old liens, unpaid taxes, judgments, HOA liens, probate ownership issues, and clerical chain-of-title errors are common.
Can a deal close if there are liens?
Sometimes, yes, if liens are paid off or resolved at closing and the lender’s lien position can be properly insured.
Why do LLC [Limited Liability Company] documents matter?
Escrow must confirm signing authority. Missing or inconsistent entity documentation commonly causes closing delays.
How do I avoid last-minute title surprises?
Open escrow early, review title early, request payoff/release documents early, and resolve issues in parallel with underwriting.
Do title issues affect lender terms?
They can. Title complexity increases timeline risk and can affect conditions and closing requirements.
