What is indicated by a defect in title?

A defect in title refers to any irregularity, imperfection, or deficiency in the ownership of real property that may affect the validity of the title or the rights of the owner. This can mean there are unresolved claims, disputes, or issues such as unpaid taxes, liens, or challenges to ownership not properly cleared. When a title is described as irregular or faulty, it signifies that the title may not provide clear and marketable ownership, which can create complications for sale, transfer, or financing. Therefore, identifying a defect means recognizing that there are underlying issues that need resolution before the title can be considered clear and safe for transactions. This understanding is crucial in the context of title insurance, as one of its primary purposes is to protect against losses arising from such defects.