A recent Reddit post gained attention for capturing what one user called "one of the stupidest mistakes" they've ever seen in real estate: a house sale that completely collapsed at the closing table.
A homebuyer shared their nightmare experience on r/RealEstate. They thought they were just hours away from owning a new home. They had wired over the down payment. They were sitting in the title office signing papers. That's when everything fell apart.
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The Title Wasn't in Her Name
"As I started signing the paperwork, the title agent realized the seller wasn't on the title," the user wrote. "Her husband died a few months earlier and her name was never on the title. The will wasn't probated and there are multiple kids involved, including stepchildren."
In short, the woman trying to sell the house wasn't the legal owner. And because the will hadn't been processed through probate, the sale couldn't move forward.
Now, the Reddit poster and their family are stuck in limbo. They had already sold their previous home. Their belongings are in storage. And according to their lawyer, the situation could take months—or even years—to resolve if any of the heirs contest the will.
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Red Flags Missed By Everyone
Real estate professionals flooded the comments in disbelief. The consensus is that this should have been caught immediately.
“This is an absolute travesty on the title company’s behalf. One of the first things we do is make sure the person that signed the contract matches the vesting deed,” said one commenter who works as a real estate closer. Another asked bluntly, “Isn't this their literal main job?”
One user speculated that the mistake could have been made by a junior employee, but added, "No matter who it was, it should have been caught immediately."
Some pointed out that if the seller and her late husband had held the title jointly, a death certificate and affidavit of survivorship might have been enough. But in this case, she had never been on the title at all. And with multiple heirs in play, the property must go through probate first.
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Probate Can Drag On For Years
Several commenters shared their own probate horror stories, ranging from a few weeks to over a decade. “In Texas, it could be more like four years,” one said and added that they had one probate case still going 17 years later.
Even in states with more efficient systems, delays happen. “After my dad passed, probate took 2.5 years,” wrote one user.
Call a Lawyer and Get That Money Back
The original poster confirmed that their down payment had been returned, but the $50,000 held in escrow remained untouched—just in case the deal could somehow be salvaged.
However, most commenters urged them to move on. As one person said, “Hope is not a strategy.” Others advised them to request the escrow funds back immediately and look for a new property.
Some also encouraged legal action against the title company. "Your title company needs to pony up for a condo until this gets resolved," one wrote. “Do not let them off the hook easily.”
One lawyer chimed in to say the situation was “egregious” and likely actionable, advising the buyer to consult a commercial litigator. Others noted that title companies carry Errors & Omissions insurance for exactly this kind of screw-up.
You Can Profit From Real Estate Without Being A Landlord
Real estate is a great way to diversify your portfolio and earn high returns, but it can also be a big hassle. Luckily, there are other ways to tap into the power of real estate without owning property. Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
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