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 Arizona, a title defect refers to any issue that compromises the validity or clear ownership of property title. Common defects include forgery, fraud, lack of proper authorization for transfers, improperly executed documents, undisclosed easements, lack of access rights, use of invalid powers of attorney, and errors in public recording. 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, or association charges not paid by previous owners, can also create title defects. Arizona law requires certain formalities for documents affecting property title to be valid, including proper execution and recording. If a title defect is discovered, it may be necessary to consult with an attorney to determine the appropriate legal remedies, which could include quiet title actions or other legal proceedings to clear the title. Title insurance is commonly used in Arizona to protect against potential title defects, but it is important to understand what is covered under the policy and any exclusions that may apply.