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 North Carolina, a title defect refers to any issue that compromises the validity or clear ownership of property title. This can include a range of problems such as fraudulent or improperly executed documents, unauthorized transfers, undisclosed easements, lack of access rights, and invalid use of power of attorney. Additionally, issues with public records such as improper filing or indexing can lead to title defects. Heirship claims, restrictive covenants not made apparent before, and defects from incorrect foreclosures can also affect title validity. Lien issues are another common source of title defects, which may arise from unpaid labor or materials, previous owners' unpaid debts including mortgages, judgments, taxes, or association charges. It's important to address any potential title defects before completing a property transaction. In North Carolina, individuals facing title defects should consult with an attorney to understand their rights and remedies under state statutes and federal law.