Why You Must Check for Title Issues Before Paper Flipping a House

Ronda Sharp
May 28
2 min read

If you're new to paper flipping houses (also known as property wholesaling), you might think your job ends after locking in a deal and finding a buyer. But there's one step you absolutely can’t skip — checking for title issues.

Let’s break down what this means and why it matters.

What Are Title Issues?

A title is the legal right to own and transfer a property. Title issues are problems that cloud or complicate ownership. Some common examples include:

Unpaid taxes or liens (like IRS or contractor liens)
Judgments or lawsuits against the property owner
Ownership disputes (such as heirs or ex-spouses with legal claims)
Clerical errors in public records
Unreleased mortgages from previous loans

These issues can block a sale, even if the property looks perfect on paper.

Why This Matters for Wholesalers

As a wholesaler, you're not just paper flipping houses—you’re selling the right to buy them. That means:

If the title isn’t clean, the end buyer may back out.
Title issues can delay or completely kill your deal.
You might invest time and marketing only to find out the property can’t legally be sold.
Worst of all, you might not get paid your assignment fee if the closing doesn’t happen.

Protect Your Profits with a Title Search

A title company or closing attorney can run a title search for you. Here’s what to do:

Determine where your buyer wants to close. Ask your title company to begin the title search immediately.
If issues pop up, work with the seller and title company to resolve them.

Real-Life Example: A Costly Mistake

Let’s say you lock in a deal and find a buyer offering a $10,000 assignment fee. Everyone’s happy—until the title search reveals $40,000 in unpaid liens. Now the deal can’t close unless those liens are paid. The seller refuses. The buyer walks. You lose the deal and your payday.

In Summary

Before flipping any paper:

Always check for title issues.
Use a reputable title company or real estate attorney.
Don’t assume a good deal on paper is a good deal legally.

Your reputation, your income, and your business depend on it.

The information in this article are of the experience and opinion of the author. Due diligence should always be done before venturing into real estate.