How can a title defect affect a buyer?

A title defect can significantly complicate clear ownership of the property, which is why this is the correct choice. When there are defects in the title, such as liens, encumbrances, or unresolved ownership claims, these issues can cloud the ownership of the property and create legal uncertainties. A buyer facing such complications may experience difficulties in asserting their ownership rights, which can lead to disputes, potential financial loss, or challenges in selling the property in the future.

For instance, if a previous owner had an outstanding mortgage that was not settled, the lender may still possess a claim over the property, impacting the buyer's ability to fully enjoy or utilize the property. This complexity can lead to costly legal battles or the necessity of resolving the title issues before the buyer can confidently proceed with their investment.

In contrast, options like improving the buyer's investment or guaranteeing a lower purchase price do not typically result from title defects. A title defect generally poses risks rather than benefits, making it crucial for buyers to conduct thorough title searches and obtain title insurance to safeguard their interests. The notion that a title defect would have no effect on the buyer’s rights also overlooks the significant implications that these issues can have on property ownership.