Defective Title

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Dictionary Says

Definition of 'Defective Title'

A piece of property or asset that has a publicly-recorded encumbrance, such as a lien, mortgage or judgment. Because other parties can lay claim to the property or asset, the title cannot be legally transferred to another party. For example, a homeowner cannot sell a home if there is an outstanding tax lien on the property. That lien would first have to be cleared before any action can be taken on the property.
Investopedia Says

Investopedia explains 'Defective Title'

Because the property or asset cannot be legally transferred to another party, the title is considered to be unmarketable. If the title holder wants to be able to do anything, the encumbrances must first be taken care of.

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Search results for

'Defective Title'

  • Understanding Property Deeds

    http://www.investopedia.com/articles/realestate/12/property-deeds-and-real-property.asp
    ... quiet enjoyment, indicating that the grantee will have quiet possession of the property,
    and will not be disturbed because the grantor had a defective title. ...

  • Should You Put Your Faith In A Trust?

    http://www.investopedia.com/articles/retirement/08/trust-company.asp
    ... Trust companies get their title from the fact that they act as trustees ... Intentionally
    defective trusts; Incentive trusts; Generation-skipping trusts; QTIP trusts ...

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