Title Defect

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Title Defect

Something that prevents a title to a property from being a clear title. That is, a title defect is a situation in which there may be a legitimate, contrary claim to the true ownership of the property. A title defect can prevent the sale of a property. See also: Title search, Title insurance, Quitclaim deed.
References in periodicals archive ?
He is a frequent speaker and presenter at continuing legal education conferences and has spoken on issues such as recession-related title defects, mechanic's liens, title insurance fundamentals, landlord and tenant law, mediation, and presenting evidence in real estate cases.
Under the terms of the deal, the parties may rescind the transactions, including the issuance of common shares thereunder, upon mutual agreement in the event that Black Dragon elects to terminate the PSA on or before 17 April 2017 due to the assertion by Black Dragon of one or more title defects as determined in accordance with the PSA.
Tenders are invited for The services shall include, but not be limited to; conducting title examinations and preparing title opinions; conferring with central office and district Right of Way staff to address and cure any title defects or issues, including the preparation of any releases documents; performing real estate closings, including the preparation of deeds of conveyance and other necessary closing documents.
Griesbach assists oil and gas clients with the drafting of certified title opinions, as well as the preparation of due diligence and curative recommendations to remedy title defects.
Shanghai Pharmaceuticals (Group) indemnifies any additional cost, fee, loss arising from operation and manufacturing suspension (if any) of the relevant units due to title defects.
While on the one hand repossessed properties are often offered for sale at auction without any title defects, there will always be a certain percentage of properties offered for sale at auction which may have title or structural defects.
So they have to go out and get a lawyer and set about curing the alleged title defects.
As most title defects are curable, many times relatively easily, paragraph 4(b) of the conditions and stipulations grants the insurer the right to seek to cure title as one means of discharging its obligations to the insured.
On 19 July 2011 (USA time), Linc Gulf Coast exercised its contractual right to terminate the transaction after notifying ERG of certain alleged title defects identified during due diligence enquiries and closing preparation.
The buyer has advised that, to date, it is unaware of any title defects, though its research is still at an early stage because of the limited access to the title records.
The language of the exclusion raises three broad areas of concern that affect insured lenders: (i) the risk that the granting of a mortgage will be deemed a preference because of recording delays, (ii) the risk of a mortgage being set aside by a trustee in bankruptcy for "routine" title defects normally covered by title insurance, and (iii) the risk that the exclusion eviscerates the insurance coverage even in non-bankruptcy contexts.