What happens if a title defect is discovered?

If a title defect is discovered, the transaction that created the defect may be invalidated. This means that the agreement between the parties is essentially null and void, and that the property may revert back to its former owner or remain in the hands of the original holder, depending on the situation. In order for a title defect to be enforceable, the defect must be cured. This means that the parties must agree to a new transaction that rectifies the issue. In Massachusetts, the law requires that a title insurance company investigate any defects that may exist in a property’s title and provide a title insurance policy to the buyer to protect them from any potential problems. Any title defect discovered must be brought to the attention of the title insurance company and they must take steps to cure the defect. Depending on the type of defect, this may involve obtaining a deed, obtaining court orders, or other legal remedies. Once the defect is cured, the parties can proceed with the transaction and the title is then deemed valid. If the parties fail to cure the defect, they may be subject to legal action. If the defect is significant enough, the transaction may be invalidated and the property may revert back to its former owner or remain with the current holder. It is important to note that title defects should be addressed quickly and professionally in order to protect the parties involved and to ensure the transaction is valid.

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What happens if a title defect is discovered?

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