The Legal Risks of Buying Property Without a Proper Title Search

Real estate law in this state recognizes that title issues can cloud ownership, lead to boundary disputes, invite creditor claims, and even undo a sale altogether.

A proper title search is not just a formality. It is one of the most important steps you can take to protect your investment.

I often speak with clients who are dealing with the fallout from buying property without a proper title search. It usually begins with what seemed like a straightforward real estate deal—a parcel of land, a house, or a commercial lot offered at a good price. But what follows can lead to years of litigation, unexpected costs, and stress that could have been avoided.

Under Tennessee law, a clear and marketable title is the foundation of any real estate transaction. 

Why a Title Search Matters

In Tennessee, the title to real property reflects ownership. But that ownership can be affected by a range of hidden issues, including liens, easements, unpaid taxes, restrictions, or even fraudulent transfers. A title search helps uncover these problems before you close the deal. 

Real estate law doesn’t forgive a buyer who purchases property with a defective title simply because they didn’t know. Once the deed is signed and recorded, the legal responsibility falls on the new owner unless there are legal grounds to reverse the transaction.

In my practice, I’ve worked with buyers who discovered title defects long after they bought a property. Some found out they weren’t the only ones with a claim. Others were surprised by old mortgages that had never been released. These issues can interfere with your ability to sell the property later, borrow against it, or even live in it peacefully.

Real estate law in Tennessee requires that titles be free from encumbrances that could diminish the value or restrict the use of the property. A title search helps identify those encumbrances before they become your burden. It’s one of the first things I look at when evaluating whether a deal has legal risks.

Unpaid Liens and Hidden Debts

One of the most common problems uncovered in a title search is a lien. A lien is a legal claim against property, usually for an unpaid debt. Contractors, tax authorities, and judgment creditors can all place liens on real estate. 

If you buy a property with an unpaid lien attached, you might be responsible for paying it—even if you had no part in creating it.

Under Tennessee real estate law, liens follow the property, not the person. That means when ownership changes, the lien stays unless it is cleared. In some cases, the lien may not show up in a basic title check. 

That’s why I recommend a full search through the county records, combined with a professional title abstract and, in many cases, title insurance.

I’ve represented clients who purchased homes only to find out months later that a previous owner owed back taxes or failed to pay a subcontractor. 

The county or lienholder doesn’t ask if you were the one who caused the debt—they just expect it to be resolved before you can sell or refinance. That’s where real estate law becomes particularly important, because it offers legal tools to challenge certain claims, but only if you take action early.

Boundary and Access Disputes

Another issue that often arises without a proper title search involves boundaries and easements. Easements grant someone else the right to use part of your land—like a shared driveway, utility line, or walkway. These rights are often recorded in the property’s history but may not be obvious just by walking the property.

Real estate law in Tennessee recognizes both recorded and unrecorded easements. Without a title search, you could find yourself owning land you can’t fully use or control. 

I’ve worked on cases where property owners discovered they had no legal access to a public road because the driveway was built on someone else’s land, and no easement was in place. These situations can quickly turn into court battles.

A full title review can uncover old surveys, recorded easements, and rights of way that affect how the property is used. It also helps you avoid disputes with neighbors, who may claim part of your land based on long-standing use or misunderstanding. 

In Tennessee, adverse possession laws allow someone to gain ownership after using land without permission for a certain period of time, which makes a title search even more important.

Fraud and Forgery in Real Estate Transactions

One of the most damaging risks in real estate law involves fraud. Fraudulent transfers, forged deeds, and impersonation schemes are unfortunately not rare. A proper title search includes verification of ownership and can detect red flags, like inconsistent records or previous legal actions involving the property.

Tennessee courts have dealt with cases where properties were sold without the actual owner’s consent, or where deeds were forged to transfer ownership illegally. In these cases, the buyer may lose their investment or face legal action from the rightful owner.

I’ve advised clients who thought they were purchasing directly from a seller, only to discover that the seller didn’t have the authority to sell. In some cases, the property was owned jointly and the other co-owner hadn’t consented. 

In others, the property was part of a trust or estate that required court approval. Without a title search, none of this would have come to light before closing.

Real estate law gives courts the authority to undo fraudulent transfers, but the buyer often bears the burden of proving their innocence and recovering their money. A title search is one of the strongest defenses against this kind of loss.

Title Insurance Is Not a Substitute for a Search

Many buyers believe title insurance will protect them from any future issues. While title insurance is useful, it does not replace a proper title search. It only protects against certain covered losses, and most policies contain exclusions. If you didn’t perform due diligence, you might not qualify for a payout.

As an attorney practicing real estate law, I always recommend reviewing both the title search results and the insurance policy closely. I’ve seen clients try to file a claim only to be told their issue wasn’t covered because it could have been discovered beforehand. That’s why my advice is to do both—order a title search and get insurance.

Title insurance is most valuable when paired with a careful review of the property’s legal history. This gives you a clear understanding of any risks before you move forward with the purchase.

Legal Remedies After the Fact

If you’ve already bought property without a title search and problems have surfaced, it’s not too late to act. 

Tennessee real estate law provides legal remedies, but the longer you wait, the fewer options you may have. In some cases, a quiet title action may be appropriate. This is a lawsuit that asks the court to determine who owns the property and remove invalid claims.

I’ve filed quiet title actions on behalf of clients dealing with disputed boundaries, old liens, or fraudulent deeds. These actions take time, and the outcome depends on the facts. But they can help clear the title so you can sell, refinance, or enjoy your property without further legal obstacles.

In other cases, if a seller knowingly concealed title defects, a lawsuit for fraud or breach of contract may be available. Real estate law allows buyers to recover damages if they can prove the seller acted dishonestly. 

In these situations, documentation matters. I always ask my clients to save emails, contracts, and closing documents to support their claims.

Get in Touch

At The Law Office of Sheridan Randolph, I help buyers, sellers, and investors avoid these pitfalls. I’m proud to serve Cleveland, Tennessee, and the surrounding areas. Call today.