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 New Mexico (NM), 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 invalid powers of attorney. Additionally, defects can arise from incorrect public record filings, claims by missing heirs, or issues stemming from a flawed foreclosure process. Lien-related defects are also prevalent, such as those from contractors' liens for unpaid labor or materials, liens from a previous owner's debts, including mortgages, judgments, taxes, or association charges. It is crucial for property owners to address these defects to ensure clear title. In cases where title defects are identified, consulting with an attorney is advisable to understand one's rights and to rectify any issues, which may involve legal action or other remedies to clear the title.