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A defect in title is an interference in the vendor's ability to perform their obligation to transfer the title under the Contract, being the subject matter of the sale (including the improvements). A defect in quality affects the quality of the land and/or improvements.
The title and the property cannot be legally transferred until the title defect is resolved. The titleholder must take care of all and any issues. For example, if there are tax liens on the property, the homeowner must pay off outstanding taxes before going through with the sale.
(a) All conveyances of land shall be: (1) In writing; (2) if the grantor is a natural person, subscribed, with or without a seal, by the grantor with his own hand or with his mark with his name annexed to it or by his agent authorized for that purpose by a power executed, acknowledged and witnessed in the manner ...
For example, a title defect could be an undisclosed heir of a previous owner suddenly appearing to make an ownership claim on your land. An encumbrance is a claim made upon the land by someone other than an alleged landowner.
The Connecticut Quiet Title Process Under Connecticut General Statute § 52-325, the Notice of Lis Pendens provides notice to the public of the pending title claim and forces future owners of the property to take the property subject to the outcome of the court action.
The term bad title refers to a legal document associated with an asset that doesn't grant ownership to the entity that holds the title. This may be because of legal and/or financial problems, including unsatisfied legal issues or even unpaid financial obligations, or even something as simple as a clerical error.