What happens if a title has minor defects?

When a title has minor defects, it can still be insured. This is significant because title insurance is designed to protect against certain risks associated with property ownership, including defects in the title. Insurers may issue a title policy that includes these minor defects, providing the buyer and lender with some assurance against financial loss due to issues arising from those defects.

Moreover, the existence of minor defects does not typically impede the sale of the property; instead, the transaction can proceed with the understanding that the buyer may be accepting some level of risk associated with those defects. In many cases, even if defects are present, they may not materially affect the ownership rights to the property, allowing for coverage through title insurance.

In contrast, situations like requiring defects to be cleared before a sale or stating that the buyer must accept the defects without insurance do not accurately reflect how minor title defects are typically handled in real estate transactions. The option regarding the property being unable to be sold also fails to align with how the real estate market functions, as sales often proceed even with minor issues, given that they are insurable.