Each item below fits somewhere in the timeline in our step-by-step guide to how Maryland settlement works. The single best way to avoid them is to send the ratified contract to your title company the day it is signed, so the title search starts with the most time to spare.
Problems in the title
- An old mortgage that was never released
- A loan can be paid off years ago and still show in the land records because the lender never recorded a release. We have to get one from that lender, or from the company that took over its records, before we can insure the title. Mergers and closed banks make this slower.
- Judgments and liens against the seller
- A court judgment against an owner, recorded in the county where the property is, is a lien on the property. So are unpaid tax liens and some contractors’ liens. Each has to be paid at settlement or released, and payoff figures take time to get.
- A gap or error in the chain of ownership
- A misspelled name, a missing signature on an earlier deed or a deed that was never recorded has to be corrected, sometimes with a new deed signed by people who are hard to find.
Local certificates and charges
- Lien certificates
- Some Maryland jurisdictions issue a certificate listing the taxes, water bills and other municipal charges owed on a property, and settlement waits for it. In Baltimore City, read why Baltimore City sellers order the lien certificate early.
- Special district and front foot charges
- Some neighborhoods carry special district fees or front foot benefit charges for water and sewer lines on the tax bill. They have to be found, then paid or divided between buyer and seller at settlement. Anne Arundel County has many; see the Anne Arundel special tax district charges that show up at settlement.
- Condominium and homeowners association documents
- The seller must give the buyer the association’s resale documents. A buyer who receives them late may still cancel within the seven days Maryland law allows after delivery, so late documents can move the whole schedule. The association’s statement of dues owed is also needed before settlement.
Permits, surveys and waterfront rules
- Open permits and violation notices
- Work done without a permit, an open building permit or a code violation notice can hold up the buyer’s lender or the buyer’s agreement to go ahead. Sellers who know of one should tell their agent and us at the start.
- Boundary and survey questions
- A fence, driveway or shed over the property line can raise questions the lender or the buyer wants answered before settlement. Our article on how boundary disputes are handled explains the options.
- Waterfront property and the critical area
- Land within 1,000 feet of tidal waters and tidal wetlands is in the Chesapeake Bay Critical Area, where piers, additions and clearing need permits. Questions about past work can take time to answer. Read about critical area title questions in Anne Arundel County.
Who signs, and on whose behalf
- An owner has died
- The property cannot be sold until someone has authority to sign for the estate, usually a personal representative appointed through the Register of Wills. Read what heirs need before they can sell an inherited house.
- Powers of attorney and trusts
- If someone will sign for a buyer or seller, we need the power of attorney or trust papers well before settlement. The buyer’s lender usually has to approve a power of attorney too.
- A buyer or seller who cannot come to settlement
- Distance does not have to hold up a sale. Settle at our Glen Burnie office, or we come to you anywhere in Maryland at no extra cost. Buying or selling from outside Maryland? We arrange a remote settlement. Tell us early, so the signing can be arranged before the settlement date.
- Divorce, separation and owners who cannot be reached
- Everyone on the deed has to sign. If one owner is unavailable or unwilling, the sale waits until that is solved.
The loan and the money
- Late loan approval. A low appraisal, a missing document or a change in the buyer’s job or credit can hold up final approval.
- A late or changed Closing Disclosure. The buyer must receive it at least three business days before settlement. Some changes, such as a higher annual percentage rate beyond the allowed margin or a different loan product, start a new three-business-day wait.
- Funds that arrive late, or go to the wrong place. We email wiring instructions; before you wire, call us at (410) 768-2300, the number on this website, to confirm them. Read our wire fraud warning.
How to keep settlement on schedule
Buyers and buyer’s agents
- Send us the ratified contract the day it is signed.
- Give us the lender’s name and loan officer early.
- Tell us if anyone will sign under a power of attorney.
- Confirm wiring instructions by phone a few days ahead.
Sellers and listing agents
- Give us every mortgage and home equity account, including ones paid off long ago.
- Tell us about estates, trusts, divorces or judgments at the start.
- Order association documents as soon as the contract is signed.
- Mention any open permit or violation notice you know about.
The earlier we see a file, the more of these we can solve before anyone notices. Open your title order now, or call us at (410) 768-2300 to talk through a file that already has a problem. Our residential settlement service covers the full process.
Questions
What happens if settlement cannot happen on the contract date?
The settlement date can be moved only if the buyer and seller agree, usually in a written addendum both of them sign. Talk to your agent before the date passes. If the contract and the delay raise legal questions, talk to your own attorney.
Can a house settle if the seller’s old mortgage was never released?
Usually, yes, but it takes time. We need a release from the lender that was paid, or from whichever company now holds its records, before we can insure the title. Sellers who know a loan was paid off long ago should tell us at the start. Call (410) 768-2300 if you are not sure.