Escrow & Title
What is a 'title defect' and what are common examples in Illinois real estate?
AA physical defect in the property that affects its structural integrity
BA problem with the chain of title that affects ownership rights, such as forgeries, undisclosed heirs, unreleased liens, or recording errors✓ Correct
CA defect in the property survey that must be corrected before closing
DA problem with the property's legal description that causes boundary disputes
Explanation
A title defect is any problem with the chain of title that affects the clarity of ownership. Common Illinois title defects include: unreleased mortgages or liens, judgments against the seller, unpaid property taxes, undisclosed heirs claiming ownership, forged deeds, errors in legal descriptions, missing signatures, and undisclosed easements. Title defects must be resolved before closing or insured through title insurance policies.
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