🏠 What Is a Title Defect in Real Estate?

A title defect — also called a cloud on title — is any issue that prevents a property’s title from being legally transferred or considered “clear.” Title defects can stop or delay a real estate sale until they are resolved. Examples include recording errors, unpaid liens, boundary disputes, or missing signatures on prior deeds.

🔍 Common Types of Title Defects

  • Unreleased mortgages or old liens
  • Errors in the public record
  • Unknown heirs or missing signatures
  • Boundary or survey disputes
  • Forgery or falsified documents
  • Unpaid property taxes or contractor liens

These issues must be cleared before a buyer can receive marketable or clear title — the legal proof that ownership is valid and uncontested.

đź“‹ How Title Defects Are Discovered

Title defects are usually discovered during the title search and closing process. Title companies and attorneys review public records to confirm ownership history and identify potential problems before closing. If an issue arises, the seller must resolve it before the title can transfer to the buyer.

âś… How Title Defects Are Fixed

Depending on the issue, the solution may include:

  • Recording a correction deed
  • Paying off outstanding liens or judgments
  • Obtaining missing signatures or affidavits
  • Filing a quiet title action through the court
  • Purchasing title insurance to protect against unresolved risks

Once cleared, the title becomes “marketable,” allowing the sale to close without risk of future ownership disputes.

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