Before any real estate transaction closes, a title search is conducted to confirm that the property can be legally transferred. This process often uncovers issues known as title defects.
What Are Title Defects?
Title defects are problems with ownership history that can affect your legal rights to the property. Common examples include:
- Unpaid liens
- Judgments against prior owners
- Errors in public records
- Unknown heirs or ownership claims
- Boundary disputes
How Title Defects Are Discovered
A title search is performed by a title company. This involves reviewing public records to trace ownership history and identify any issues.
How Defects Are Resolved
Depending on the issue, solutions may include:
- Paying off liens
- Obtaining releases or satisfactions
- Filing corrective deeds
- Resolving disputes through legal action
A real estate attorney plays a key role in resolving more complex issues.
Why This Matters Before Closing
If title defects are not resolved, the transaction may be delayed—or even canceled. This is why working with a real estate closing attorney or title and escrow company is critical.
Title Insurance as a Safety Net
Even after issues are addressed, title insurance provides additional protection against unknown defects.
Final Thoughts
Title defects are common, but they don’t have to derail your transaction. With the right legal guidance, they can be resolved efficiently before closing.
