What defines a title defect?

A title defect is defined as a claim to the title by someone else, which directly relates to the security and clarity of property ownership. This can manifest in various forms such as previous liens, unresolved claims, or disputes over ownership. If there is an allegation or documented evidence that another party has a legal claim or interest in the property, it constitutes a defect, as it undermines the rightful owner's ability to convey clear title.

The other options do not depict title defects effectively. For instance, having clear ownership with no claims indicates a clean title, while multiple mortgage liens suggest encumbrances but do not necessarily denote a defect in terms of ownership claims. An official appraisal pertains to the property's market value, which, while crucial in real estate transactions, does not relate to the legitimacy or claims surrounding the title itself. Thus, the presence of another party's claim to the title distinctly identifies it as a title defect.