What do defects in a title imply for property ownership?

Defects in a title indicate potential issues such as unpaid liens, claims from former owners, or errors in public records, which can undermine the legal ownership of the property. When a title has defects, it raises questions about the rightful ownership and the ability to transfer clear title to new buyers. This situation can jeopardize an owner’s claim to the property and may result in ongoing legal disputes, thus leading to a potential loss of ownership.

Additionally, lenders and buyers typically require a clear title to ensure that they are protected against any claims that may arise from previous ownership issues. As a result, defects in the title can significantly complicate property transfers, threaten ownership stability, and diminish the security of the investment.