Checklist · Real Estate
Resolving a Title Defect, Survey Problem, or Failed Closing: A Practical Checklist
26 U.S.C. § 6321
- Type
- Checklist
- Jurisdiction
- National
- Date
- 2023-11-26
- Topic
- Real Estate
This checklist follows a real estate transaction from contract signing through recording and any post-closing problem, sequenced so that each defect is found while there is still time to cure it. The first sequence is the week-one work: ordering the commitment and survey the day the contract is signed, calendaring the objection and cure deadlines, and reading Schedule B line by line. The second covers converting Schedule B-I into an assigned work list and Schedule B-II into an objection letter, with the standard exceptions that can be removed and the endorsements worth requesting. The third covers the survey and what to do with what it reveals. The fourth matches each recurring defect to its cure and its realistic timeline. The fifth covers the closing itself, including the wire confirmation step that prevents the largest irrecoverable loss in the transaction. The sixth covers a closing that fails, and the seventh covers post-closing problems and title claims. Deadlines that cannot be recovered are marked throughout.
Resolving a Title Defect, Survey Problem, or Failed Closing: A Practical Checklist
Real Estate > Title, Survey, and Closing Problems | Published 26 November 2023 - Updated 10 July 2025 | UpLaw - uplaw.us
⭐ Two facts organize everything below. Every title defect is cheaper the earlier it is found. And Schedule B-II — not the policy amount — defines what the buyer is actually covered for.
Sequence A — Week one
☐ ⭐ Order the title commitment and the survey the day the contract is signed. ☐ Calendar the title objection deadline and the seller's cure period. ⚠ A late objection can waive the defect entirely. ☐ Calendar the financing commitment expiration and the closing date. ☐ Identify who is responsible for ordering each item and confirm it was done. ☐ Read the contract's marketable title standard, objection clause, and remedy clause — ⭐ these three provisions decide every later dispute. ☐ Note any cap on the seller's cure obligation. ☐ ⚠ Establish the wire confirmation protocol now, and tell the client: no one will send revised wire instructions by email.
Sequence B — The commitment
B1. Schedule A
☐ Proposed insured spelled correctly and matching the intended vesting. ☐ Policy amount equals the purchase price for the owner's policy. ☐ Estate or interest correct — fee simple, leasehold, easement. ☐ Record owner matches the seller on the contract. ⚠ A mismatch is a problem, not a typo. ☐ ⭐ Compare the legal description against the deed and the survey, word for word.
B2. Schedule B-I — the work list
For each requirement, record: ☐ What it demands. ☐ ⭐ Who is responsible, by name. ☐ What document satisfies it. ☐ How long it takes. ☐ The due date, worked backward from closing. ☐ ⚠ Put every item requiring a third party at the top — releases, estoppels, probate documents, and agency discharges.
B3. Schedule B-II — the objections
For each exception: ☐ Standard or specific? ☐ If standard, request deletion: ⭐ survey exception by providing the survey; possession and mechanic's lien exceptions by owner's affidavit and indemnity. ☐ If specific, obtain and read the underlying document. ⚠ An exception naming a recorded easement tells you nothing until you read it. ☐ Does it affect the intended use? ☐ Is an endorsement available — survey, access, zoning, restrictions, contiguity, environmental protection lien? ☐ Does it require a price adjustment or a contract objection?
B4. Output
☐ ⭐ A work list from B-I with names and dates. ☐ ⭐ An objection letter from B-II, served before the deadline.
Sequence C — The survey
☐ Order at contract signing. ⭐ A survey delivered three days before closing converts a solvable problem into a crisis. ☐ Choose the type: boundary; location; ⭐ ALTA/NSPS for commercial or complex parcels; topographic or plat for development. ☐ Have the surveyor certify to the buyer, the lender, and the title company. ☐ Provide it to the insurer and request deletion of the survey exception. ☐ Compare it against Schedule B-II item by item. ☐ ⭐ Walk the property with the survey in hand.
What to do with what it shows: ☐ Fence or improvement over the line → encroachment agreement; boundary line agreement; deed of the strip; survey endorsement; removal with a price adjustment. ☐ Improvement over an easement → relocation agreement; consent from the easement holder; endorsement. ☐ Gap or overlap → corrective deed; boundary line agreement; quiet title. ☐ Acreage discrepancy → price adjustment; amended description. ☐ ⚠ No access → recorded easement grant; statutory way of necessity; resolve before closing. ☐ Boundary disputes: see neighbor law, resolving a boundary or encroachment dispute, and the neighbor and boundary dispute toolkit.
Sequence D — Curing defects
⭐ Order of preference: cure it, insure over it, escrow for it, litigate it.
D1. Call the insurer first
☐ ⭐ Ask whether the insurer will insure over the defect. This is faster than any cure and is the first call, not the last. ☐ Ask what documentation would make it possible.
D2. Match the defect to the cure
| Defect | Cure | Timeline |
|---|---|---|
| Unreleased mortgage | Release from the current holder; statutory release; ⭐ insure over | Days–months |
| Judgment lien | Payoff and release; affidavit of identity for a name match | Days–weeks |
| Federal tax lien | ⚠ Request discharge of the property early — 26 U.S.C. § 6321, 26 U.S.C. § 6323 | ⚠ Weeks |
| Estate tax lien | Release under 26 U.S.C. § 6324 | Weeks |
| Unpaid taxes | Payoff at closing | Days |
| Missing heirs | Deeds from all heirs; probate; affidavit of heirship; quiet title | ⚠ Months |
| Defective description | Corrective deed; scrivener's affidavit; boundary agreement | Days–weeks |
| Undisclosed easement | Release; relocation; endorsement | Weeks |
| Mechanic's lien | Waivers; payment and release; ⭐ bond over; escrow | Days–weeks |
| Encroachment | Encroachment or boundary agreement; endorsement | Weeks |
| Unknown claimants | ⚠ Quiet title | ⚠ Months |
D3. Bankruptcy in the chain
☐ ⚠ Check for any bankruptcy affecting anyone in the chain. ☐ Automatic stay — 11 U.S.C. § 362; a transfer in violation may be void. ☐ Estate property — 11 U.S.C. § 541; sales require authorization under 11 U.S.C. § 363. ☐ Leases — 11 U.S.C. § 365. ☐ ⭐ Unperfected interests are avoidable — 11 U.S.C. § 544. ☐ Prior transfers avoidable under 11 U.S.C. § 547 and 11 U.S.C. § 548; post-petition transfers under 11 U.S.C. § 549. ☐ See consumer bankruptcy.
D4. If an escrow holdback is used
☐ The amount, and how calculated. ☐ The specific cure, described so completion is objectively determinable. ☐ The deadline; who performs; who bears overruns. ☐ ⚠ What happens if the cure fails — release to whom, on what showing. ⭐ This provision is the entire agreement.
D5. If quiet title is required
☐ Identify every necessary party — remaindermen, lienholders, heirs, unknown claimants. ☐ ⚠ Conduct and document a diligent search before service by publication. Service failures void judgments years later. ☐ ⭐ Confirm with the insurer, before filing, what the action must accomplish for the title to be insurable. ☐ Record the judgment. ☐ Plan for months, not weeks.
Sequence E — Closing
☐ All Schedule B-I requirements cleared and documented. ☐ Payoff statements obtained with per diem and good-through dates. ⚠ A stale payoff is a closing-day failure. ☐ Releases prepared and ready to record. ☐ Association estoppel letter obtained; arrears paid from seller proceeds; ⚠ any violation confirmed cured in writing — see challenging or enforcing an HOA rule, fine, or assessment. ☐ Tax status confirmed; prorations calculated. ☐ Insurance bound effective at closing. ☐ Closing disclosure compared to the loan estimate — 12 U.S.C. § 2603, 12 C.F.R. part 1026; settlement procedures at 12 U.S.C. § 2601 and 12 C.F.R. part 1024. ☐ Verify no prohibited referral fees or unearned charges — 12 U.S.C. § 2607; escrow limits at 12 U.S.C. § 2609. ☐ Deed prepared: correct grantor, correct legal description, correct vesting, correct form. ☐ ⚠ CONFIRM WIRE INSTRUCTIONS BY VOICE, to a number obtained independently. Treat any emailed change as fraudulent until confirmed. ☐ Funds confirmed as cleared, not merely received. ☐ Documents executed. ☐ ⭐ RECORD THE SAME DAY. ☐ Confirm recording; obtain the policy; ⚠ compare it to the commitment as negotiated — deletions and endorsements must actually appear.
Sequence F — When the closing fails
F1. Buyer
☐ Confirm the objection was timely and within the contract's clause. ☐ Options: terminate and recover the deposit; extend for cure; close with an escrow holdback; close with insurance over; negotiate a price reduction; ⚠ specific performance where the seller can convey but will not. ☐ ⚠ Follow the notice provisions exactly — method, address, and deadline. ☐ Address the financing commitment expiration before agreeing to any extension. ☐ Where specific performance is contemplated, file promptly and consider recording notice of the action.
F2. Seller
☐ Cure within the contract period, or request an extension in writing. ☐ ⚠ Read the cap on the cure obligation before spending. ☐ Where the buyer defaulted, ⚠ read the liquidated damages clause — many cap the seller's remedy at the deposit. ☐ Consider whether the defect will recur with the next buyer; ⭐ cure it now regardless.
F3. Both
☐ Document every extension in a signed writing. ☐ Do not close and "sort it out later" without a written agreement allocating the risk. ☐ Preserve the earnest money in escrow pending resolution.
Sequence G — After closing
☐ Confirm the deed and mortgage actually recorded, and obtain the recording data. ☐ Obtain the owner's policy and compare it to the commitment; ⚠ negotiated deletions and endorsements must appear. ☐ Store the closing archive: deed, policy, survey, payoff letters, recorded releases, lien waivers, closing disclosure, and any curative instrument.
If a problem appears: ☐ ⭐ Title claim — notify the insurer promptly, in writing, at the policy address. ⚠ Late notice can prejudice coverage. Provide the policy, commitment, deed, and offending document. Tender the defense — it is broader than the duty to indemnify. Request any denial in writing. ☐ Deed warranty claim against the seller, if a general warranty deed issued. ☐ Nondisclosure claim for a known defect the seller concealed. ☐ Servicing or escrow error — use the error-resolution procedure at 12 U.S.C. § 2605. ☐ Rescission questions on a refinance in the chain — 15 U.S.C. § 1635; assignee liability at 15 U.S.C. § 1641; disclosure remedies at 15 U.S.C. § 1640. ☐ Scrivener's error in the recorded deed — corrective deed or reformation. ☐ ⚠ Wire fraud — contact the sending bank immediately and request a recall; contact the receiving institution; report to law enforcement; notify all parties and carriers; preserve every email and header. See resolving a bank account hold or payment dispute and responding to fraud, a scam, or financial exploitation. ☐ Discrimination in the transaction — 42 U.S.C. § 3604; 24 C.F.R. part 100.
Sequence H — Before listing, for sellers
⭐ A defect found before listing is a task; the same defect found during the objection period is leverage for the other side.
☐ Order a title search on your own property. ☐ Locate release documents for every loan ever paid off; confirm each was recorded. ☐ Locate the survey from your own purchase and any later one. ☐ ⚠ Resolve estate and divorce documentation before listing. ☐ Obtain lien waivers from every recent contractor — ⚠ the lien period may not have run. ☐ Obtain an association estoppel and confirm the account is current. ☐ Confirm taxes and special assessments are current. ☐ Compare the legal description on your deed against the survey. ☐ ⚠ Understand your disclosure obligations; nondisclosure claims survive closing.
The deadline table
| Item | Timing | If missed |
|---|---|---|
| Order commitment and survey | ⭐ Contract signing | Every downstream deadline compresses |
| Title objection | Contract deadline | ⚠ Defect waived |
| Seller's cure period | Contract deadline | Buyer's termination right ripens |
| Financing commitment | Per commitment | Loss of the rate or the loan |
| Payoff good-through date | Stated on the statement | ⚠ Closing-day shortfall |
| Wire confirmation | ⚠ Before sending | ⚠ Irrecoverable loss |
| Recording | ⭐ Same day | ⚠ Priority loss; avoidance exposure |
| Title claim notice | Promptly, in writing | ⚠ Coverage prejudice |
| Escrow cure deadline | Per the holdback agreement | Funds released per the failure provision |
Related resources
Plain-language overview: the problem nobody found until closing. Full treatment of defects, insurance, surveys, and cures: title, survey, and closing problems. Objection letters, affidavits, and agreements: the title defect and closing problem toolkit.
Adjacent: buying and selling a home, zoning and land use, residential construction and home improvement, and probate and estate administration.
⭐ One instruction covers the checklist: order the commitment and survey the day the contract is signed, read Schedule B the day it arrives, and assign every requirement to a person with a date.
Appendix: the Schedule B-I tracking sheet
⭐ Fill one row per requirement, in the first week. Unassigned requirements are the mechanism by which closings slip.
| # | Requirement (verbatim) | Responsible person | Document that satisfies it | Requested on | Expected duration | Due date | Status |
|---|---|---|---|---|---|---|---|
| 1 | ☐ | ||||||
| 2 | ☐ | ||||||
| 3 | ☐ | ||||||
| 4 | ☐ | ||||||
| 5 | ☐ |
Sort the list before working it: ☐ ⚠ Third-party items first — lien releases, association estoppels, probate documents, agency discharges, and anything requiring a defunct or merged institution. ☐ Then items requiring the seller's signature. ☐ Then items the title company handles. ☐ Then items satisfied at the closing table.
⭐ Review the sheet at a fixed time each week and escalate anything without movement. Most closing failures are a single unworked row.
Appendix: the Schedule B-II objection worksheet
| # | Exception (verbatim) | Standard or specific | Underlying document obtained | Effect on intended use | Removal / endorsement requested | Insurer response | Resolution |
|---|---|---|---|---|---|---|---|
| 1 | ☐ | ||||||
| 2 | ☐ | ||||||
| 3 | ☐ |
The four standard exceptions and what removes each: ☐ Rights of parties in possession → owner's affidavit; tenant estoppels. ☐ Easements not shown of record → survey plus affidavit. ☐ ⭐ Matters an accurate survey would disclose → provide the survey. ☐ Mechanic's liens not of record → lien affidavit and indemnity; waivers from every tier.
Endorsements to request by name: ☐ Survey / location · ☐ Access · ☐ Zoning · ☐ Restrictions violations · ☐ Contiguity · ☐ Environmental protection lien · ☐ Same-as-survey · ☐ Subdivision
⚠ A buyer who does not ask receives materially less coverage than they believe they purchased.
Appendix: the title objection letter
[Date] — [Seller / seller's counsel], via [contract's notice method]
Re: Title objections — [property], contract dated [ ]
Pursuant to Section [ ] of the Contract, Buyer objects to the following matters disclosed by the title commitment dated [ ] (File No. [ ]) and the survey dated [ ]:
1. [Exception/requirement, quoted.] Objection: [why]. Cure requested: [specific instrument or action].
2. [Same format.]
3. [Same format.]
Buyer additionally requests that the following standard exceptions be deleted from the policy: rights of parties in possession; easements not shown by the public record; matters an accurate survey would disclose; and mechanic's liens not of record. Buyer will provide the survey and requests an owner's affidavit and indemnity to support deletion.
Buyer requests the following endorsements: [list].
⚠ This objection is served within the period stated in Section [ ]. Buyer reserves all rights under the Contract, including the right to terminate and recover the earnest money if the objections are not cured within the applicable period.
[Name, contact, date]
☐ ⚠ Serve by the method the contract specifies, before the deadline. ☐ Be specific about the cure requested; a general objection invites delay. ☐ Keep proof of delivery.
Appendix: the wire fraud protocol
⚠ This is the largest irrecoverable loss available in a real estate transaction, and it is entirely preventable.
At the start of the transaction
☐ ⭐ Tell the client, in writing and out loud: "We will never email you revised wire instructions. If you receive any, call me at the number on my card before you do anything." ☐ Establish the confirmation protocol and identify the phone number to be used. ☐ Use a secure portal rather than email for financial detail where available. ☐ Warn every party — buyer, seller, agents — not just the buyer.
Before any wire
☐ ⭐ Confirm the instructions by telephone, to a number obtained independently — from the engagement letter, a business card, or the company's published number. ⚠ Never a number in the email. ☐ Treat any change in instructions as fraudulent until confirmed by voice. ☐ Verify the receiving account name against the expected recipient, not just the number. ☐ Send a test wire where amount and timing permit. ☐ Confirm receipt by telephone after sending.
If it happens
☐ ⚠ Contact the sending bank immediately and request a recall. Hours matter; the money moves through several accounts within a day. ☐ Contact the receiving institution. ☐ Report to law enforcement, including the federal internet crime reporting channel. ☐ Notify all parties, the title company, and every professional liability carrier. ☐ Preserve every email with full headers, and do not delete anything. ☐ See resolving a bank account hold or payment dispute and consumer banking and payments.
Appendix: the closing archive
⭐ Deliver this set to the client in one package, with a note explaining what each document is for.
☐ The recorded deed, with recording data ☐ The owner's title policy — ⚠ checked against the negotiated commitment ☐ The survey, with the surveyor's certification ☐ Payoff letters and recorded releases for every prior lien ☐ Lien waivers from contractors ☐ The closing disclosure and settlement statement ☐ Any curative instrument — corrective deed, affidavit, boundary or encroachment agreement ☐ The association estoppel and any written confirmation of cured violations ☐ Insurance binder and policy ☐ Loan documents, including the note and mortgage as recorded
⚠ Tell the client to store it where it will survive several moves. ⭐ The next person who needs these documents is the same client at the next sale, facing a title examiner asking the same questions this transaction already answered — and having the answers converts a three-week problem into a one-day one.
Appendix: five defects and how each was prevented
⚠ Each of these delayed or killed a closing, and each was findable in week one.
☐ The 1998 mortgage never released. Found on day 44 of a 45-day contract. ⭐ Prevented by ordering the commitment on day one and reading Schedule B-I the day it arrived — the requirement was there the whole time.
☐ The fence three feet over the line. Found when the survey arrived four days before closing. ⭐ Prevented by ordering the survey at contract signing, which would have left five weeks to negotiate a boundary line agreement instead of four days.
☐ The subcontractor's lien filed after the search. ⭐ Prevented by obtaining lien waivers from every tier before the search, and by keeping the mechanic's lien exception in view rather than assuming the search was final.
☐ The estate nobody probated. Discovered during the objection period; the cure took four months. ⭐ Prevented on the seller side by ordering a title search before listing — the defect had existed since 2011.
☐ The wire that went to a criminal. ⭐ Prevented by one sentence delivered at the start of the transaction, and by a phone call to a number that did not come from the email.
⚠ None of these were close questions and none required a lawyer to solve. All five required someone to do an ordinary thing several weeks earlier than the contract made them do it.