In real estate transactions, sellers are typically responsible for delivering marketable titles. Still, buyers must verify and insist on cures when defects appear. If you are planning to purchase a property or in the middle of such a deal, understanding the legal mechanisms can empower you to demand a clean title or obtain contractual protections before handing over funds.
Title defects can drain resources
Title defects are problems with the property’s ownership history that could affect your rights as the new owner. These issues can create clouds on the title that must be cleared before you can take possession with peace of mind.
In Michigan, state law requires sellers to disclose known defects, but many title issues remain hidden until a professional title search uncovers them.
Legal remedies for specific defects
Many title defects can be cured, but the remedies you will need to use differ by type. These include:
- Unpaid liens, judgments or taxes: You can obtain payoff statements, secure recorded lien releases or satisfactions and file them with the county recorder. If you cannot complete payoffs before closing, you may use escrow holdbacks or payoff escrows to ensure creditors are paid from sale proceeds.
- Possible ownership claims from heirs or prior owners: Requesting quitclaim deeds to remove clouds quickly is an option. These transfer any interest without warranties and are useful when signatures or interests are uncertain.
- Boundary disputes and encroachments: Consider ordering a new survey and negotiating a recorded boundary line agreement or mutual easement with neighbors. If agreement is not possible, you can pursue a quiet‑title action so a court can declare and record the true boundary.
- Easement problems: Try to negotiate modification, relocation or termination with the easement holder. Make sure to record the agreed changes to prevent future restrictions on use.
- Errors in public records: You may file corrective deeds, affidavits or other curative documents with the appropriate government office to fix the official record.
- Forgery, fraud or defective deeds: Consider initiating court action to set aside fraudulent instruments and quiet title. Expect to gather documentary evidence and, if needed, expert testimony to prove invalidity.
The discovery of title problems does not automatically mean you must walk away. With these legal actions, you can resolve title defects before closing.
Take action now to reduce risk
Title issues can escalate after closing and create years of legal work. Consider working with an experienced real estate attorney to review the title report, draft curative documents and advise on Michigan law. A legal professional can help you safeguard your rights and secure a clean transfer.