"We're sitting at closing, ready to sign, and the title agent says 'We have a problem.'" That's how Manny described the moment his world stopped. After weeks of preparation, his buyer sitting across the table, he learned something that shouldn't have been possible: He didn't actually own the property he was trying to sell.
Let me tell you what happened—because this true story shows exactly why closing paperwork matters, why title searches exist, and why you need professionals who know how to solve problems most people don't even know can occur.
The Closing That Almost Didn't Happen
Manny's Nightmare: The Investment That Never Was His
The situation: Manny lives out of state and purchased a Dayton property as an investment in 2024. He rented it out, made mortgage payments, paid property taxes, insurance—everything you do as a property owner. One year later, in 2025, he decided to sell. We went under contract. Everything seemed normal—until closing day.
What the title search revealed: The deed recorded when the previous owners (Michael and Susan—a married couple) originally bought the property years earlier only had Michael's signature. Susan's signature was missing. Instead, there was a Power of Attorney document showing Michael as Susan's attorney-in-fact.
The problem: Susan had never signed that Power of Attorney. She knew nothing about it. The document was fraudulent—created without her knowledge or consent during their original purchase. This meant when they sold to my client Manny in 2024, they didn't have clear title to transfer. Manny had been making payments on a property he didn't legally own.
The complications: By 2025, the original couple had divorced. The former husband (Michael) and former wife (Susan) were living in different cities. They hadn't communicated in years. And here's what made this even more serious: that fraudulent POA had allowed an illegal transfer that affected multiple transactions over several years—including my client's purchase.
What about title insurance? My client Manny had purchased title insurance when he bought the property in 2024. But here's what most people don't understand: his title insurance policy wouldn't cover the year of mortgage payments, property taxes, insurance premiums, and maintenance costs he'd paid while unknowingly not having clear title. He stood to lose everything he'd invested beyond just the purchase price.
What I did: I tracked down both the former husband and former wife. Found them in separate cities. Explained the situation to each of them—carefully, because this was complicated and sensitive. The former wife was shocked to learn about the fraudulent POA. I coordinated with the title company, which conducted a thorough investigation. Got the former wife's actual, legitimate signature on the necessary documents. Worked with all parties to untangle years of illegal transfers.
The resolution: The title company worked with everyone involved to correct the chain of title going back to the original fraudulent transaction. Proper documents were signed. We delayed closing, but ultimately completed the transaction legally and correctly. My client Manny was able to sell. The buyer got clear title. And the fraud that had existed in the property records for years was finally corrected.
What Manny told me afterward: "I bought this as an investment. I've been paying the mortgage, taxes, insurance—everything—for a year. If we hadn't caught this, I could have lost not just the property but every payment I'd made. My title insurance wouldn't have covered all those costs. If you hadn't known how to track everyone down and work with title to fix this, I would have lost everything."
The answer to Manny's fear? He was right. Without clear title, he couldn't sell. And his title insurance, while helpful for certain claims, wouldn't have reimbursed him for the year of mortgage payments, taxes, insurance, and maintenance he'd paid on a property he didn't legally own. This is why closing paperwork matters. This is why title searches are crucial. And this is why you need an agent who doesn't just shuffle papers but actually understands what they mean—and knows how to solve problems when they arise.
What Actually Happens at Closing
Closing is where ownership legally transfers from you to the buyer. You'll sit at a table (or sign separately) with a closing agent who presents documents for signature. Most closings take 30-60 minutes. But those minutes finalize weeks or months of work—and create legal obligations that can last years.
The key players typically include you, your agent, the buyer, the buyer's agent, and a closing agent or attorney. In Ohio, we can do in-person closings where everyone meets together, or separate closings where parties sign at different times.
The Documents That Matter Most
The Settlement Statement: Your Financial Truth
This document shows every dollar in your transaction. Your sale price, what gets deducted, and what you're actually taking home. It includes:
- Your mortgage payoff—verified directly with your lender
- Real estate commissions—as agreed in your listing contract
- Title insurance costs—protecting the buyer's ownership rights
- Prorated property taxes—calculated to the day of closing
- Transfer taxes and recording fees—required by Ohio law
- Any negotiated credits—repairs or closing cost assistance
Review Every Line Before Signing
I caught a $3,200 error on a settlement statement two hours before closing. The seller was being charged for repairs the buyer had agreed to handle. My seller was so emotionally exhausted he almost signed it without reading. That's why I'm there—to protect you when you're too stressed to protect yourself.
The Deed: Transferring Ownership
This single document transfers your ownership to the buyer. Once you sign and it's recorded, you no longer own the property. There's no undoing it.
In Ohio, we typically use a General Warranty Deed, which means you're guaranteeing:
- You own the property and have the right to sell it
- The property is free from liens except those disclosed
- You'll defend the buyer's ownership against any future claims
This sounds scary, but title insurance protects everyone if problems arise. Still, verify that your name is spelled correctly, matches how you took title, and that the property description is accurate. A single-letter misspelling can create problems that take months to fix.
The Affidavit of Title: Your Sworn Statement
You're swearing under oath that:
- You're the legal owner
- There are no undisclosed liens or judgments
- You've paid all contractors
- No one else has rights to the property
- All improvements were properly permitted
False statements create legal liability. This is why honest disclosure throughout the process is crucial. Everything needs to align.
Understanding Your Net Proceeds
Here's a real example of how the math works:
Sale Price: $250,000
Less Mortgage Payoff: -$178,450
Less Commission (6%): -$15,000
Less Title Insurance: -$1,100
Less Transfer Tax: -$1,000
Less Closing Fees: -$650
Less Prorated Taxes: -$875
Less Repair Credits: -$2,000
Plus Prepaid HOA: +$125
Your Net Proceeds: $51,050
This is why accurate estimates early in the process matter. No one wants surprises about what they're actually netting at closing.
Wire Fraud: The Closing Day Threat
The $127,000 Email That Wasn't Real
My sellers received an email two days before closing with "updated" wiring instructions. It looked perfect—correct logo, right closing agent's name, professional formatting. It was completely fake.
Because I'd warned them never to trust emailed wiring instructions, they called me first. We verified directly with the title company by phone. The email was fraudulent. Had they followed those instructions, they would have lost their entire $127,000 proceeds.
The rule: Always verify wiring instructions by calling the title company directly at a number you look up yourself—never one provided in an email.
What Happens After Signing
Once you sign, the closing agent:
- Records the deed with the county
- Sends payoffs to your lender
- Disburses all funds per the settlement statement
- Delivers your proceeds via wire or check
Recording usually happens same-day or next business day. Once recorded, the sale is official. The property is no longer yours. Your proceeds typically arrive within 24-48 hours if wired.
Why You Need an Agent Who Actually Understands This
Manny's story isn't common—but it's real. And it shows what can hide in paperwork that looks routine. When problems arise at closing, you need someone who:
- Reads every document—not just points to signature lines
- Catches errors before you sign them into existence
- Knows how to solve problems most people don't know exist
- Has relationships with title companies and knows who to call when things go wrong
- Protects you when you're too stressed to protect yourself
I've walked sellers through closings where everything went perfectly. And I've solved problems ranging from last-minute lien discoveries to fraudulent documents affecting title. Every situation is different, but none of them should be handled by someone who's just there to collect a commission.
The Bottom Line
Closing paperwork isn't just formality. These documents establish legal facts about ownership, financial obligations, and responsibilities that can follow you for years.
Most closings proceed without incident. But when problems surface—and they do—you need someone who doesn't panic, who knows which calls to make, and who understands how to navigate title issues that would stop most transactions dead.
Manny's closing happened three weeks later than planned, but it happened correctly. His buyer received clear, legal title. He recovered his investment and got his proceeds. And a chain of fraudulent documents that had corrupted the property records for years was finally corrected—protecting future buyers and sellers from inheriting the same nightmare.
This is what experience delivers: turning potential disasters into solvable problems, delays into successful closings, and chaos into outcomes that protect everyone involved.
When you're signing documents that transfer hundreds of thousands of dollars and establish legal obligations that can affect you for decades, you need more than someone who points to signature lines. You need someone who actually reads what you're signing, understands what it means, and knows how to fix it when something goes wrong.
Disclaimer: This blog is for educational purposes only and does not constitute legal, financial, or title advice. The scenarios described are based on actual situations but have been modified to protect privacy. Title issues, closing procedures, and legal requirements vary based on individual circumstances and jurisdictions. All real estate practices described comply with federal Fair Housing Act requirements and Ohio real estate laws. Always consult with your licensed real estate agent, attorney, title company, and other appropriate professionals for guidance specific to your situation. Past results do not guarantee future outcomes.