What is a common outcome if there are defects in the title?

When there are defects in the title, one of the most common outcomes is potential delays in closing the transaction. A title defect signifies that there may be unresolved issues related to ownership, liens, encumbrances, or other legal claims against the property. These issues need to be identified and resolved before the property can be legally transferred to a new owner.

Title insurance is designed to protect against losses arising from title defects, but before an insurance policy can be issued, the defects must be addressed. This process could involve clearing liens, resolving disputes, or rectifying documentation errors. Each of these actions can take time, resulting in delays in the transaction timeline. The parties involved in the sale must carefully navigate these defects to ensure that the title is clear, which is essential for a smooth and legal transfer of ownership.

In contexts where defects are present, it is crucial for buyers and sellers to be aware that these issues can hinder the closing process, making it a significant concern that needs immediate attention.