What Every Homeowner Needs to Know About Property Title Disputes

Property ownership is something most people take for granted. Once you close on your home, you might think the hard part is over. few people think twice about the title—after all, the paperwork had been signed, the keys handed over, and the mortgage approved. 

However, a few months later, you receive a letter claiming that someone else has a legal interest in your property. That’s when you learn just how serious a property title dispute can be.

At Schwartz, Hanna, Olsen & Taus, P.C., our experienced real estate law attorneys assist clients with property title disputes arising from a wide range of circumstances. Issues stemming from inheritance complications, administrative errors, or outstanding liens can create significant challenges that jeopardize your rights as a homeowner. Located in Metuchen, New Jersey, our firm serves clients throughout the state, including Middlesex County, Somerset County, Morris County, Essex County, Passaic County, Bergen County, Sussex County, and Hunterdon County.

We're here to help homeowners understand what they’re up against and what to expect when disputes arise. Let's try to understand the challenges that title disputes can bring, including how they occur, how to respond, and what protections are available.

What Is a Property Title Dispute?

When someone challenges your legal right to a piece of real estate, you’re in the middle of a property title dispute. This means more than just confusion—it can lead to lawsuits, delays in refinancing or selling your home, and in some cases, losing ownership altogether.

Disputes often stem from overlooked issues such as errors in public records, unknown heirs, or unaddressed liens. Regardless of the cause, the common thread in all title disputes is that another party asserts a legal interest in a property already believed to be owned.

Common Causes of Title Disputes

There are several ways property title disputes can begin, and being aware of these can help you avoid or identify one early.

Clerical errors in public records: A single typo on a deed or improperly recorded transfer can lead to someone else staking a claim on your property.

Unknown heirs or former owners: When property is passed down through generations, previously unknown heirs may later come forward. If someone dies without a clear will, or if a will is contested, ownership can become murky.

Forged or fraudulent documents: Some disputes start with bad actors forging signatures or creating false claims of ownership.

Boundary or easement disagreements: These disputes arise when neighbors disagree over property lines or whether access should be granted to a portion of the land.

Unpaid liens or judgments: If a previous owner left behind debt, creditors may have placed a lien on the property, even if we weren't aware of it when we bought the home.

These issues can create uncertainty, disrupt financial plans, and threaten legal ownership if left unresolved.

How Title Insurance Fits Into the Picture

Title insurance is a critical safeguard in real estate transactions. It protects homeowners and lenders from financial loss due to defects in a property's title that may arise after the transaction is complete.

There are two main types:

Lender's title insurance protects the financial institution's investment in the property.

Owner's title insurance protects the homeowner from covered claims.

This added layer of protection can offer homeowners peace of mind and financial security long after the purchase is complete.

Typical coverage under an owner's policy may include:

• Fraud or forgery in past transactions

• Claims from unknown heirs

• Mistakes in the public record

• Unreported easements or encroachments

Without this insurance, resolving disputes often means paying legal costs out of pocket and risking partial or total loss of the property.

What Happens When a Title Dispute Arises?

When a property title dispute emerges, there is a general process most cases follow:

Step 1: Review the claim
The first step is reviewing the claim made against the title. Is it valid? Is it based on a real issue or just a misunderstanding?

Step 2: Consult with a lawyer
It's almost impossible to determine the best response without someone familiar with real estate law in New Jersey.

Step 3: Investigate the chain of title
This involves researching property records to determine who owned the property and when. The goal is to determine where the problem originated.

Step 4: Attempt a resolution
Sometimes disputes can be settled outside of court. In our case, the claim was eventually withdrawn after it was established that the heir had already signed away their rights.

Step 5: Litigate, if necessary
If no agreement can be reached, the matter may be taken to court. While that's not ideal, it may be the only way to resolve certain disputes.

Familiarity with this process empowers homeowners to approach title disputes with confidence and clarity, enabling them to make strategic decisions that lead to swift and effective resolutions.

Legal Protections and How They Help

Owning property gives you specific rights, but those rights can be challenged when someone else presents a valid claim. That's why we learned it's important to understand the legal tools available when property title disputes arise.

One option our law firm, Schwartz, Hanna, Olsen & Taus, P.C., explored was filing a quiet title action, which asks the court to declare the rightful owner and officially remove any competing claims. For those of you dealing with boundary disagreements or encroachments, a boundary line agreement between neighbors can often resolve the issue without the need for court involvement.

When the problem stems from errors in records—like a misspelled name or a missing signature—title curative work, completed with the help of the county recorder's office, can sometimes fix it. In cases where both parties are open to resolving issues outside the courtroom, mediation or arbitration can be a faster and more cost-effective solution.

If the matter is covered by title insurance, the provider may step in to handle legal expenses or negotiate on your behalf. Different problems call for different legal tools, and working with a lawyer helped us understand which ones made the most sense. Knowing your rights and options also helped us approach the situation more calmly and confidently.

How Title Issues Affect Refinancing or Selling

One of the most challenging aspects of our dispute was the financial delay. We had planned to refinance our mortgage, but the bank paused the process when a title dispute surfaced. That's because no lender wants to put money into a property with unclear ownership.

The same principle applies to selling a home. Most buyers want a clear title before proceeding, and their lender will likely require it. If the title is clouded, even by a minor issue, the transaction can fall apart.

Delays in closing: We spoke with someone who had their sale delayed by months due to an old, unpaid contractor lien.

Loss of buyer interest: Many buyers won't wait around for problems to get resolved. They'll simply move on.

Lower sale prices: If we had been forced to sell during the dispute, we might have accepted a lower price to settle the matter.

That's why we always recommend doing a thorough title search and keeping up with legal documents, especially when planning major financial steps.

Preventing Future Title Disputes

Although title disputes cannot be entirely eliminated, implementing strategic preventive measures significantly minimizes exposure to potential ownership challenges. Property owners who maintain comprehensive records and stay current with legal developments position themselves to effectively safeguard their investment against threats that could compromise their rights and financial security.

Buy title insurance: This is the biggest piece of advice we can offer. It's not just a formality—it's protection.

Keep records organized: We now keep every deed, mortgage release, and related letter in one place.

Have a real estate lawyer review documents: Looking back, we recognize that securing professional legal review during this critical phase would have been a prudent investment in our property's future, regardless of any statutory requirements.

Check property lines before building or planting: Boundary conflicts frequently emerge when physical improvements such as fencing or landscaping extend beyond established property lines, creating encroachment issues that can escalate into costly legal disputes.

Monitor for liens or claims: We signed up for alerts through our county's property database so we'd know if anything was filed against our address.

These actions may seem small, but they've given us greater control over our property's future. By staying organized, informed, and legally protected, we're much better prepared to defend our ownership if a dispute ever comes up again.

Working With the Right Legal Help

What makes the biggest difference in our situation is getting the right legal advice. A property title dispute isn't just a paperwork issue—it's a legal claim that can affect your rights, your money, and your peace of mind.

At Schwartz, Hanna, Olsen & Taus, P.C., we assist homeowners throughout New Jersey who are facing challenges with their property titles. Whether you're dealing with a known issue or one that caught you off guard, having a real estate lawyer by your side helps you sort through it and move forward.

Speak to a Real Estate Lawyer Now

Don't let a title issue put your home at risk. If you're facing property title disputes, our experienced real estate law attorneys at Schwartz, Hanna, Olsen & Taus, P.C. can help you move forward with confidence. Located in Metuchen, New Jersey, we serve clients throughout the state, including Middlesex County, Somerset County, Morris County, Essex County, Passaic County, Bergen County, Sussex County, and Hunterdon County. Call today to discuss how we can help protect your rights and property.