A title defect is anything that can cause a title to be considered invalid or defective in some way. Some examples are:

• Invalid documents due to forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation.

• Failure of any person or entity to have authorized a transfer or conveyance.

• A document affecting title that is not properly executed, signed, witnessed, notarized, or delivered.

• Undisclosed or unrecorded easements not otherwise apparent on your land.

• No right of access to and from the land.

• A document executed under a falsified, expired, or otherwise invalid power of attorney.

• A document not properly filed, recorded, or indexed in the public records.

• Ownership claims by undisclosed or missing heirs.

• Defect arising from an improper prior foreclosure.

• Undisclosed restrictive covenants affecting your property.

Lien issues can also cause title defects. Some examples of lien issues are:

• Any statutory or constitutional contractor’s, mechanic’s, or materialman’s lien for labor or materials that began on or before the policy date. Talk to an attorney about your rights.

• Lien for labor or materials furnished by a contractor without your consent.

• A previous owner failed to pay

o a mortgage or deed of trust

o a judgment, tax, or special assessment

o a charge by a homeowners or condominium association.

• Other liens or claims that may exist against your title that are not listed in the policy.

In Hawaii, a title defect refers to any issue that compromises the validity or clear ownership of property title. This can include problems such as forgery, fraud, undue influence, incompetency, or improper execution of documents. If a transfer of property was not authorized or a document was not correctly signed, witnessed, notarized, or recorded, the title could be considered defective. Unrecorded easements, lack of access to the property, or use of an invalid power of attorney are also potential defects. Additionally, issues with public records, such as improper filing or indexing, can affect title clarity. Claims by missing heirs or issues arising from a flawed foreclosure process can also create title defects. Lien issues, such as those from contractors, judgments, taxes, or homeowners associations, can encumber a title if they were not settled by previous owners. In Hawaii, it is advisable to consult with an attorney to understand the implications of these defects and to determine the appropriate legal remedies to clear the title.