Examples of real estate title defects

Title defects are issues with the property’s title that can complicate the process of transferring it from one individual to another. Sometimes a title defect just causes a delay. In other cases, it means the transfer cannot happen at all.

There are many different ways that this can occur, so below are a few examples to keep in mind.

Liens and financial issues

First and foremost, if there is a lien on the property, such as a mechanic’s lien or tax lien, that may need to be paid first. There can also be other financial issues, such as judgments against the property owner or outstanding mortgage balances.

Procedural issues

Real estate titles do have to be filed correctly. In some cases, proper procedures were not followed, which can lead to a defective title. There can also be technical details, like inconsistencies between the certificate of title and the deed.

Other ownership claims

One serious issue is when someone else makes an ownership claim for the same property. For instance, say that two beneficiaries inherited a property together when their parents passed away. If one person is trying to sell that property but has not gotten the approval of the other, it may not be possible to proceed with the transaction. The other party can claim that they also own that property and do not intend to sell.

Resolving title issues

These are just a few examples to start with, but they help show how serious these title defects can be. If you run into complications during a property transaction, be sure you know what legal steps to take.