What is meant by a "defect" in a title?

A "defect" in a title refers to any issue that may affect the validity or marketability of a title. This encompasses various problems that could hinder a buyer's ability to own or sell the property freely and confidently. For instance, defects could include unresolved liens, boundary disputes, or claims of ownership from other parties. These issues can create uncertainty regarding the true ownership of the property and can complicate transactions, making lenders hesitant to provide financing or buyers wary of proceeding with a purchase. A clear title is essential for a smooth real estate transaction, as it ensures that the new owner can enjoy their property without fear of legal disputes or claims from outsiders.

In contrast, other options, such as natural disasters, changes in ownership, or lending issues, do not inherently define a title defect. While those situations can impact property ownership or use, they do not specifically relate to the foundational issues of title validity and marketability that a defect embodies.