Title issues can feel like a red light on your Washtenaw County sale. You are excited to list, then a lien, unpaid mortgage, or probate question slows everything down. The good news is most problems have clear cures when you know the steps and timelines. In this guide, you will learn how title companies and attorneys fix common issues, what timelines to expect in Michigan, and the actions you can take today to keep your closing on track. Let’s dive in.
First steps when a title issue pops up
Start by understanding your title commitment. When you go under contract, the title company issues a commitment that acts like a checklist for closing. Schedule B lists what must be cleared before the insurer will issue a policy and fund the deal. If anything on Schedule B looks unfamiliar, ask your closer to explain each item and how it will be cured. You can also review a plain-English overview of the process in this resource from the American Land Title Association’s consumer site, HomeClosing101.
Next, get in writing what is owed and who must act. If you see a mortgage or lien, request written payoff statements and ask the servicer to confirm who will prepare and record the discharge. In Michigan, a recorded discharge is what clears title, not just paying the account. State law in Chapter 565 covers mortgage discharge requirements and remedies if a lender fails to record, so cite that when you follow up on timing. You can reference the statute text here: Michigan’s discharge requirements.
Finally, check local records. Use the county’s tools to verify tax status and recording history. Washtenaw County’s Tax Searches page lets you check delinquent taxes before you proceed. If recording help is needed, contact the Clerk/Register of Deeds about local practices and fees through the Washtenaw County Clerk of Court.
Common title problems in Washtenaw and fixes
Unreleased or unpaid mortgages
A mortgage that was paid off but never discharged will still appear as a lien and block closing. The cure is a recorded Satisfaction or Discharge from the lender. Michigan statutes require mortgagees to prepare and record discharges, and they outline penalties for noncompliance. Expect a short delay while the lender records the release and the county indexes it, which can take a few weeks.
Delinquent property taxes or foreclosure status
Unpaid property taxes create a priority lien. Michigan uses a multi-year schedule from delinquency to forfeiture to foreclosure. If your property is already in the county’s process, act quickly. Review the statewide timeline here: Michigan’s real property tax forfeiture and foreclosure process. In a standard sale, delinquent taxes are paid from proceeds at closing.
Mechanic’s or construction liens
Contractors, subs, or suppliers can record a construction lien if they were not paid. In Michigan, the claimant must record within 90 days of last work and must file suit to enforce within 1 year of recording. See the statutory windows in the Construction Lien Act: MCL 570.1109. Valid liens are usually paid or bonded off to allow closing.
Judgments and tax liens
Money judgments and federal or state tax liens attach to real estate and often appear as Schedule B requirements. The typical cure is payoff or a formal satisfaction that is recorded. Your title company can coordinate payoffs from sale proceeds once you provide the payoff letters.
Probate or missing heirs
If an owner has passed and the estate was not fully probated, the title company will need proper authority to convey. That can include appointing a personal representative and obtaining court documents before closing. Local probate filings and court scheduling can add time, so start early if you know an estate is involved.
Boundary, easement, or survey discrepancies
Fence lines, driveways, or improvements that do not match the legal description can raise questions. The lender may request a current ALTA/NSPS survey to confirm boundaries and easements. You can review what a modern survey includes in the ALTA/NSPS Survey Standards. Cures range from boundary agreements to endorsements or, in rare cases, court actions.
Clerical or recording errors
A misspelled name, incorrect legal description, or missing notarization is common and usually fixable. Title companies routinely resolve these with corrective deeds or affidavits once the right parties are available to sign.
Fraud or forged documents
If there is suspected seller impersonation or a forged deed, notify your title agent immediately. These matters often require legal action and underwriting review. Title companies and insurers treat this as a serious risk and will coordinate next steps.
Timelines and what to expect in Michigan
Every cure runs on its own clock. Here are typical ranges and the statutes that drive them.
- Mortgage discharges: Once the payoff is received, many servicers record a discharge within a few weeks up to about 60 days. Michigan’s Chapter 565 sets discharge duties and remedies if a lender fails to record, which is why you should track the recorded document, not just payment. See MCL 565.44.
- Mechanic’s liens: Recording must occur within 90 days of last work, and foreclosure must be filed within 1 year of recording. These windows are strict. See MCL 570.1109.
- Tax forfeiture and foreclosure: The statutory calendar spans multiple years, with critical notice and redemption dates that counties follow. Review the schedule here: State of Michigan foreclosure timeline.
- Quiet title or probate: Court actions can take months to over a year, depending on parties, service, and court backlog. For a practical overview of quiet title timing in Michigan, see this guide: Understanding quiet title actions.
Most administrative cures, like recording a release or filing a corrective deed, resolve in days to weeks once documents are signed. Litigation, active tax foreclosure, or contested liens are the scenarios that typically push timelines into months.
How title issues affect closing and negotiation
Most lenders will not fund a loan if the title commitment lists unresolved Schedule B requirements that affect lien priority, like unpaid taxes, unreleased mortgages, or valid construction liens. That gives buyers leverage to request cure, credits, or extensions. You can prepare by understanding the typical outcomes:
- Seller cures before closing by recording releases, paying off liens, or obtaining endorsements the underwriter accepts.
- Seller credits or price adjustments if the buyer agrees to handle a specific post-closing item the underwriter allows.
- Escrow holdback where funds are reserved at closing to complete a narrow cure within a defined time, subject to lender and title approval.
- Buyer termination if the issue is material and cannot be cleared as required.
If you need a quick primer on how a title commitment frames these requirements, this resource shows how Schedule B drives the checklist and negotiations: Understanding the title commitment.
Checklist: what to gather right now
- Keep your title commitment handy and list each Schedule B requirement in plain English. Your closer can explain what each line means.
- Request written payoff letters for any mortgage, HELOC, or lien. Confirm who will prepare and record the discharge, and ask for expected recording timelines under Michigan’s discharge rules.
- Check the county’s online tax portal for delinquent taxes and keep screenshots or printouts for your file. Use Washtenaw County’s Tax Searches tool.
- Collect documents you already have: prior deeds, mortgage payoff receipts, lien waivers from contractors, recent surveys, estate documents, divorce decrees, and ID for all sellers.
- If survey questions exist, plan for an ALTA/NSPS survey. Review standards here: ALTA/NSPS Survey Standards.
- Ask your title company when an attorney should step in, especially for probate, quiet title, or contested liens. Quiet title procedure is governed by statute and court rules, including MCR 3.411.
Local resources and offices
- Check tax status and payoffs: Washtenaw County Tax Searches.
- Recording questions and forms: Washtenaw County Clerk/Register of Deeds.
- Title process overview: HomeClosing101.
Whether you are selling in Webster Township, Ann Arbor area, or elsewhere in Southeast Michigan, a clear plan keeps your sale moving. If you want contract-smart guidance and hands-on coordination with your title company and lender, connect with our team at Five Star Luxury Realty. We combine premium marketing with legal-literate transaction support so you can proceed with confidence. Get a Free Home Valuation and a clear roadmap to closing.
FAQs
Can I sell my Washtenaw County home if there is a title problem?
- Often yes. Many issues are cured before closing by recording releases or paying off liens. Complex matters like probate or quiet title may add time, so disclose early and work with your title company to map the cure steps. See the consumer overview at HomeClosing101.
How long does it take to clear an unreleased mortgage in Michigan?
- After payoff, many servicers record the discharge within a few weeks up to about 60 days. Michigan law in Chapter 565 sets discharge duties and remedies for failure to record. Track the recorded document, not just payment. See MCL 565.44.
What are the deadlines for Michigan construction liens?
- A lien claimant must record within 90 days of last furnishing labor or materials and must file suit to enforce within 1 year of recording. These statutory windows are strict. See MCL 570.1109.
How do delinquent taxes affect my closing?
- Property tax liens have priority, and lenders usually require they be paid at or before closing. If the property is already in forfeiture or foreclosure, that process must be addressed first. Review the timeline here: Michigan foreclosure process.
What is a quiet title action in Michigan?
- It is a court case to resolve competing claims when administrative cures will not work. Procedure is governed by statute and court rules, including MCR 3.411, and it can take months or longer depending on complexity. See an overview here: Understanding quiet title actions.
