To buy a second-hand home without a property title, prioritize verifying ownership through county land records, obtaining a title report from a title company, and confirming there are no liens or disputes. Draft a legally binding purchase agreement outlining payment terms, inspection clauses, and title transfer conditions. Engage a real estate attorney to review documents and ensure compliance with local laws. Pay in installments to reduce financial risk until the title is transferred. Purchase title insurance to protect against future claims.

This process is complex due to the lack of a clear legal ownership document, increasing risks of fraud or undetected liens. According to the American Land Title Association (ALTA), 1.2% of U.S. properties have title defects requiring legal resolution, costing buyers an average of $5,000 in repairs or legal fees. Without a title, buyers face higher exposure to such issues. For example, in Florida, 7.3% of real estate transactions in 2022 involved title disputes, often traced to missing documentation. Title companies require a clean title to issue insurance, delaying closing or increasing premiums by up to 15%. State laws like New York’s Property Title Law mandate title transfer before sale, making purchases without titles illegal in most jurisdictions. buyers must also verify property boundaries and zoning compliance, as 8.4% of U.S. properties have unclear boundary disputes (U.S. Census Bureau, 2021). Engaging professionals and thorough due diligence mitigate risks but add time and cost, often extending transactions by 30–60 days compared to standard purchases.