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 Arkansas, a title defect refers to any issue that compromises the validity or integrity of a property's title. Common defects include fraudulent or improperly executed documents, unauthorized transfers, undisclosed easements, lack of legal access to the property, and issues arising from the use of invalid powers of attorney. Additionally, defects can result from documents not being correctly filed or recorded in public records, claims from missing heirs, or problems stemming from a flawed foreclosure process. Lien-related defects can occur when there are outstanding claims against the property for unpaid work or materials, whether from a contractor's, mechanic's, or materialman's lien, or from unpaid mortgages, judgments, taxes, special assessments, or homeowners' association fees. It is crucial for property owners or prospective buyers to address any title defects before proceeding with a transaction. In Arkansas, as in other states, title insurance may provide protection against many of these issues, but it is advisable to consult with an attorney to understand the specific legal implications and remedies available for title defects.