Title and Ownership Pitfalls—Why Fiduciaries Shouldn’t Wait

A preliminary title report is not a “real estate step.” It is an early risk-assessment tool for the fiduciary.

One of the most preventable causes of delay in a fiduciary real estate sale is waiting too long to order a preliminary title report. Too often, a Realtor® is brought in after a fiduciary has already begun the sale process, only to discover a title issue that stops everything in its tracks.

A preliminary title report should be ordered at the very beginning of administration whenever real property is involved. It is not simply a step toward escrow; it is an early diagnostic tool that reveals hidden liabilities, ownership problems, and potential legal exposure.

What shows up on title can directly impact a fiduciary’s timeline, authority, and ability to sell.

Some of the most common (and time-consuming) discoveries include:

Reverse Mortgages and Equity DepletionMany fiduciaries are unaware that a reverse mortgage exists until title reveals a large lien balance, accrued interest, and servicing requirements. These loans often require additional documentation, payoff coordination, occupancy certifications, and strict timelines that can delay a sale if discovered late.

Mechanics Liens and Contractor ClaimsUnpaid contractors, roofers, or handymen frequently record liens years earlier that no one remembers. These must be cleared before closing and often require negotiation, releases, or legal intervention.

Outdated or Incorrect VestingProperty still vested in a deceased spouse’s name, a former trust, or a prior marital status is extremely common. If deeds were never properly recorded into the current trust, the fiduciary may not yet have clear authority to sell. Corrective deeds, affidavits, or court involvement may be required.