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 Oregon, a title defect refers to any issue that compromises the validity or clear ownership of property title. Common defects include forgery, fraud, undue influence, incompetency, and improper execution of documents. Oregon law requires that all documents affecting property title must be properly executed, signed, witnessed, notarized, and delivered to be valid. Additionally, they must be correctly filed, recorded, and indexed in public records. Easements that are undisclosed or unrecorded can also be problematic, as can issues with access to the property. Claims by missing heirs or defects from improper foreclosures can affect title validity. Liens, such as those from contractors (mechanic's or materialman's liens) or from unpaid debts by previous owners (mortgages, judgments, taxes, or association charges), can also create title defects. It's important to address any potential title defects before completing a property transaction. In cases where title defects are identified, consulting with an attorney is advisable to understand one's rights and to seek remedies to clear the title.