What is a title defect?

A title defect refers to an issue or claim that can impact the legal ownership and marketability of a property title. It signifies that there may be unresolved liens, claims, or other encumbrances that could challenge the rightful ownership or the ability to transfer the property to a new owner. These defects can include things like errors in the public records, undisclosed heirs, or conflicting easements.

Understanding that a title defect can directly hinder transactions is crucial for real estate professionals, as it highlights the importance of conducting thorough title searches and obtaining title insurance. This ensures that any potential issues can be identified and addressed before a property is sold or transferred, safeguarding both buyers and sellers in the real estate marketplace.

In contrast, conditions that enhance property value, forms of insurance for property ownership, and governmental restrictions on property use do not pertain to flaws in the title itself, making them irrelevant to the definition of a title defect.