Which document confirms any known title defects?

The affidavit of title is the appropriate document that confirms any known title defects. This legal document is typically signed by the seller and provides a statement about the status of the title to the property being sold. It declares any potential issues or defects that may affect the property title, such as liens, encumbrances, or any other claims against the property that could hinder a clear ownership transfer. By disclosing these known defects, the affidavit helps protect both the buyer and the lender by ensuring they are aware of any issues before completing the transaction.

Other documents listed serve different purposes. The settlement statement details the financial components of the real estate transaction, including closing costs and the distribution of funds, but does not specifically address title defects. The title insurance policy protects against future claims and defects that are not known at the time of the transaction but does not confirm known issues. The property appraisal assesses the value of the property for financing purposes, focusing on its market value rather than its title status. This distinction ensures that the affidavit of title is the crucial document for addressing known defects in title.