What happens if a title defect is discovered?

If a title defect is discovered in Kansas, it can have a significant impact on the purchase of a property. In general, a title defect is an issue with the legal title of the property that prevents the transfer of the property from one person to another. These defects can take many forms, such as errors in the chain of title, liens, encumbrances, or even a claim from a third party to ownership of the property. When a title defect is discovered, the property must go through a process of legal resolution. Depending on the defect, this process can be lengthy and expensive. The buyer and seller need to consult with real estate attorneys and investigate the nature of the defect. If the defect can be easily cured, the parties can agree to a solution, such as a release from the lien or encumbrance. If the defect cannot be resolved or is too expensive to resolve, the parties can decide to cancel the purchase. The buyer is entitled to receive their deposit back, as long as they have not contributed to the title defect. In some cases, the seller may also be liable for damages or losses incurred by the buyer for any financial losses associated with the title defect. Ultimately, the legal resolution of a title defect is up to the parties. While it is best for the defect to be resolved before the property is sold, if it is discovered, steps must be taken to handle the issue. Both the buyer and the seller must consult with attorneys to ensure their rights are protected and the title defect is properly addressed.

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What happens if a title defect is discovered?

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