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Title Defect

Definition - What does Title Defect mean?

If a title defect is discovered regarding a piece of real property, the property becomes unmarketable. Title defects can include a lien on the property, a mistake in recording the owner of the property, or erroneous information in the document that may conflict with property laws and real estate principles.

Justipedia explains Title Defect

Having a title defect on a piece of property can cause the property to be declared invalid. In addition, a bank will not give a loan to a buyer who is attempting to purchase property that has a title defect. To be able to sell, purchase, or even convey the property, the owner must first resolve the title defect. It is recommended to perform a title search with the county in which the property is located. This will often resolve a title defect in which the true owner of the property is at issue.

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