What is meant by a title defect?

A title defect refers to any issue that may impair ownership rights or marketability of a property. This encompasses a variety of problems, such as liens, encumbrances, or unresolved claims against the property, which can create uncertainty or conflict over rightful ownership. When a title defect exists, it can affect a potential buyer's ability to obtain financing or insurance, and it may also pose future legal challenges. Thus, addressing title defects is critical in real estate transactions to ensure smooth ownership transfer and to protect the interests of all parties involved.

The other options address different concepts that do not encapsulate the breadth of what a title defect means in real estate. An error in the address of the property may lead to confusion but does not inherently impact ownership rights. A temporary restriction on property use is not directly related to the title but rather relates to zoning or similar regulations. Finally, a legal process for transferring property ownership describes the mechanics of how ownership changes hands and does not involve issues related to title integrity itself.