What does the term "title defect" refer to?

The term "title defect" refers to any issue that disrupts clear ownership of property. This means that a title defect could involve unresolved liens, outstanding claims, or any other encumbrance that challenges the rightful ownership or the ability to transfer the property freely. Such defects can impede the process of buying, selling, or refinancing a property, as they raise questions about the rightful owner and the legitimacy of the title. Resolving these issues is crucial for ensuring that a buyer receives clear and marketable title upon the purchase of a property, which is why understanding title defects is essential for title agents and producers.

The other options do not accurately capture the essence of what a title defect entails. For instance, confirming ownership or describing favorable aspects of a property title would not pertain to defects, as these imply clarity and legitimacy rather than issues or challenges. Similarly, property specifications do not relate to title defects, as they concern the physical attributes of the property rather than legal ownership issues.