What Is a Title Defect in NH Real Estate?

🏡 What Is a Title Defect in NH Real Estate?

When buying a home in Plymouth, Campton, Rumney, Thornton, or anywhere in Central NH, the title search plays a critical role in determining whether a property can legally be transferred.

A title defect is any problem with the property’s ownership record that can delay or even prevent closing.

Because lenders require clear, marketable title, understanding title defects is essential for NH buyers.

Here’s what you should know.

⭐ What Is a Title Defect?

A title defect is an issue in the property’s ownership history that affects the seller’s ability to transfer clean, legal ownership.

Common defects include:

✔ Unreleased mortgages

✔ Incorrect legal descriptions

✔ Missing signatures on past deeds

✔ Errors in recording

✔ Fraud or forged documents

✔ Boundary disputes

✔ Unresolved liens or judgments

✔ Probate or inheritance issues

✔ Claims from previous owners

✔ Active lawsuits affecting the property

Any of these issues must be resolved before closing can move forward.

⭐ How Do Title Defects Occur?

Title defects often happen because of:

• Old paperwork errors

• Incomplete mortgage releases

• Family transfers that skipped legal steps

• Subdivision mistakes

• Overlooked liens

• Contractor or tax debts

• Disputes over property lines or access

In older NH towns, defects sometimes go unnoticed for decades until a sale triggers a title search.

⭐ How Title Defects Affect NH Buyers

A title defect can create serious problems:

⚠️ Delayed or canceled closing

⚠️ Lenders refusing to issue a mortgage

⚠️ Title insurance being denied

⚠️ Unexpected legal costs

⚠️ Risk of ownership disputes later

⚠️ Trouble insuring or selling the property

Even if you’re paying cash, buying a home with a title defect can put your ownership at risk.

⭐ How Title Companies Fix Title Defects

To resolve a title defect, attorneys or title companies may:

✔ Record missing documents

✔ Obtain corrected deeds

✔ File court orders

✔ Contact prior lenders for releases

✔ Clear probate or estate issues

✔ Resolve boundary disputes

✔ Pay off liens or judgments

✔ Update legal descriptions

Once fixed, the property can receive marketable title and move toward closing.

⭐ Why Title Insurance Matters

Title insurance protects buyers and lenders from financial loss caused by:

✔ Undiscovered defects

✔ Fraud

✔ Recording errors

✔ Hidden heirs

✔ Incorrect legal descriptions

✔ Prior ownership claims

Even after closing, title insurance helps defend against future challenges.

⭐ Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com