Definition
Title defects are issues like unpaid mortgages, tax liens, or unclear ownership that cloud the title and must be cleared before closing. The seller typically fixes these.
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Title defects are issues discovered during a title search that cloud the title or prevent clear transfer of ownership. Common defects include unpaid mortgages, tax liens, judgment liens, mechanic's liens, and unclear ownership due to gaps in the chain of title. Title defects must be cured (resolved) before closing. The seller is typically responsible for clearing defects, though the buyer may negotiate to pay for resolutions in some cases.
Pro Tip
Don't proceed to closing if title defects haven't been cleared.
Example
The title defect of an unpaid property tax lien was cured by the seller paying the back taxes.