In the context of title assurance, what does "defects" refer to?

In the context of title assurance, "defects" specifically refer to issues that affect property ownership. This can include a range of problems such as liens, encumbrances, outstanding mortgages, or unresolved ownership disputes that could impact the marketability or legal standing of a property's title. Identifying and addressing these defects is crucial for ensuring clear and marketable title, which is the core purpose of title insurance. Ensuring that a title is free from defects allows buyers to have confidence in their ownership, providing protection against any claims that may arise after the sale.

The other options relate to different aspects of real estate but do not directly pertain to the concept of title defects. Enhancements refer to improvements made to the property, market trends involve the fluctuating values of properties based on economic conditions, and future property values pertain to projections about how property prices might change over time. While all these factors are important in real estate transactions, they do not define what constitutes a defect in title assurance.