A title issue discovered during a sale or refinance of a home may be something that can be addressed through the closing process. However, sometimes the problem uncovered during title review reveals a disagreement about who owns the property or whether an earlier transfer was effective. 

For owners and investors with a transaction already underway, these five signs can help identify when the problem may extend beyond completing additional paperwork. 

1. Someone Else Claims an Ownership Interest in the Property 

A competing ownership claim is different from a request for another closing document. Someone may contend that an earlier deed, inheritance, trust, or other transfer gives them an interest in the property you are trying to sell or refinance. 

Their claim does not establish ownership by itself. It does indicate that the parties may disagree about who holds rights in the property. 

2. Two Deeds or Property Records Point to Different Owners 

If different deeds appear to support competing ownership claims, resolving the issue can require examining the history behind those conveyances. 

When two deeds appear to conflict, the dispute is not always resolved by looking at which one was recorded first. The underlying transfers, recording history, notice, and each party's claimed interest may also matter.

3. Someone Challenges an Earlier Deed or Property Transfer 

A problem can surface when someone disputes an earlier transaction in the property's ownership history. 

The disagreement might concern whether a deed was properly executed or delivered, whether a purported transfer occurred as claimed, or another issue affecting the conveyance. Because later ownership may depend on that earlier transaction, the challenge can become relevant when the property returns to the closing table. 

4. An Heir or Successor Says They Were Left Out 

An unresolved inheritance issue may become visible when property is later sold or refinanced. 

Texas law provides for a deceased owner's property to pass to devisees under a will or heirs when there is no will, subject to estate administration. If someone later claims an inherited interest that was not accounted for in the ownership history, the parties may need to determine what interest, if any, that person holds. 

5. Someone Questions Whether the Person Who Signed Had Authority 

Property is often transferred by someone acting for another person or entity. That can include an executor acting for an estate, a trustee, an LLC representative, or someone using a power of attorney. 

If the authority behind an earlier signature is challenged, reviewing the documents in effect at the time of the transfer may become necessary. This issue can be particularly relevant for investors acquiring property from estates, trusts, or business entities. 

Can a Title Dispute Delay a Sale or Refinance of a Home? 

An unresolved ownership issue can complicate a transaction while the parties determine what the property records and underlying documents establish. Buyers, lenders, and title professionals may need the issue addressed before they are willing to proceed. 

That does not mean every delayed closing will lead to litigation. It does mean that competing ownership claims, disputed transfers, and questions about signing authority deserve a different analysis from an ordinary request for additional closing documentation. 

If you have an owner's title policy and someone is challenging your ownership, see [What Does Title Insurance Do When Someone Challenges Your Property Title in Texas?] 

Is a Title Dispute Affecting Your Texas Real Estate Transaction? 

If a title issue has developed into a disagreement about ownership, a deed, an heir's claimed interest, or a prior transfer, contact The Keller Firm to learn how a Real Estate Attorney may help evaluate the dispute. 

Disclaimer: This website is for informational purposes only and does not constitute legal advice. Do not act or refrain from acting based on anything you read on this site. Use of this site or communication with The Keller Firm does not create an attorney-client relationship. 

Sources 

Texas Property Code § 13.001, Validity of Unrecorded Instrument 
https://statutes.capitol.texas.gov/Docs/PR/pdf/PR.13.pdf 

Texas Property Code § 5.021, Instrument of Conveyance 
https://statutes.capitol.texas.gov/Docs/PR/pdf/PR.5.pdf 

Texas Estates Code § 101.001, Estate of a Decedent 
https://statutes.capitol.texas.gov/Docs/ES/pdf/ES.101.pdf 

Texas Department of Insurance, Title Insurance Basic Manual, Section IV 
https://www.tdi.texas.gov/title/titlemm4.html