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 New Jersey, a title defect refers to any issue that may invalidate or make a title defective. This includes a range of problems such as forgery, fraud, undue influence, incompetency, incapacity, or impersonation related to the execution of documents. Issues with the authorization of transfers, improper execution, witnessing, notarization, or delivery of documents, and undisclosed easements can also constitute title defects. Lack of legal access to the property, use of an invalid power of attorney, and errors in public recording are additional concerns. Missing heirs, improper foreclosures, and undisclosed restrictive covenants can lead to claims against the property. Lien issues, such as those from contractors, mechanics, or materialmen, or from unpaid mortgages, judgments, taxes, assessments, or association charges by previous owners, can also create title defects. It is important to consult with an attorney to understand your rights and remedies regarding any potential title defects or lien issues in New Jersey.