11:44
that sucks :(
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Simple English definitions for legal terms
defective title
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A quick definition of defective title:
A defective title means that someone claims ownership of a property or assets that cannot be legally transferred to another person. When someone sells property, they must provide a clear title to the buyer. However, the buyer is also responsible for checking the title for any problems and telling the seller about them. The seller must try to fix any issues, but they don't have to do anything too difficult. The buyer and seller can agree to cancel the sale if the seller can't fix the title problems.
A more thorough explanation:
A defective title refers to ownership of property or assets that cannot be legally transferred due to claims by someone else. This means that the seller does not have the legal right to sell the property or assets because someone else has a claim to it.
For example, if a person tries to sell a house but there is a lien on the property, the title is considered defective because the seller does not have clear ownership of the property. The buyer cannot legally purchase the property until the lien is resolved.
When buying property, it is important to examine the title for any defects and notify the seller of any issues. The seller is responsible for making good faith efforts to cure any defects in the title, but they are not required to put in extraordinary efforts. The buyer must also investigate the title and give written notice of any alleged defects so that the seller can cure the defect within a reasonable time.
If the seller cannot transfer marketable title and is unable to cure title defects, the agreement to sell the property may be void. However, an escape clause may not be available if the seller cannot prove that they made reasonable efforts to cure the defects.
Overall, a defective title can cause legal issues and prevent the transfer of ownership of property or assets.