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 York, a title defect refers to any issue that compromises the validity or clear ownership of real estate title. Common defects include forgery, fraud, undue influence, incompetency, and improper execution of documents. New York law requires that real estate transactions be properly documented, signed, witnessed, notarized, and recorded in the county where the property is located to ensure the validity of the title. Unrecorded easements, issues with access to the property, and invalid powers of attorney can also lead to title defects. Additionally, liens such as mechanic's liens, judgments, unpaid mortgages, taxes, or homeowners' association fees from previous owners can encumber the title. It is crucial to address any potential title defects before completing a real estate transaction. In New York, title insurance is commonly purchased to protect against these risks. If you suspect a title defect or are facing a lien issue, it is advisable to consult with an attorney to understand your rights and remedies under New York law.