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Title defects affect Arizona property owners

What if my property has a title defect? What is a title defect? Will a title defect derail my real estate transaction? These questions may be running through your head as you are considering executing a real estate transaction.

A title defect, also known as a cloud on title, can arise from a multitude of issues and can create questions about the validity of the title of a property. There may be other claims on the property that were not properly documented when the previous deed was issued, such as a lien that may have been discharged but not documented properly with the required local government offices. Title defects often arise from procedural missteps, such as insufficient signatures on the deed or improper transfer of the property to the current owner. When there is an unreported lien against the property, the title is considered defective, and therefore not valid.

Title defects may give rise to real estate disputes regarding who is the owner of the property. Properly investigating the title through a title search before entering into a real estate transaction may be able to help prevent any future purchase dispute by identifying and resolving any potential title defects. Additionally, even if you have begun a real estate transaction and discovered a title defect, there may be a simple solution to quickly and smoothly resolve the title defect. Title defects do not have to lead to real estate litigation.

Getting more information about the complexities of real estate transactions and how title defects may affect a real estate transaction may help facilitate the deal to help make it as smooth as possible with the goal of resolving any title defects.

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