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 South Dakota, a title defect refers to any issue that compromises the validity or legal standing of a property's title. Common defects include invalid documents due to fraud, forgery, or lack of proper execution; unauthorized transfers; undisclosed easements; lack of legal access to the property; and improper filing or recording of documents. Title defects can also arise from claims by missing heirs, issues with powers of attorney, or problems with prior foreclosures. Additionally, liens such as contractor's, mechanic's, or materialman's liens for unpaid labor or materials, as well as liens from mortgages, judgments, taxes, assessments, or homeowners' association charges from previous owners, can create title defects. In South Dakota, these matters are typically addressed through the public records and court systems. It is important to address any potential title defects before completing a property transaction. Individuals facing title defects or lien issues should consult with an attorney to understand their rights and remedies under South Dakota law.