What would typically be classified as a “major defect” in a title?

A “major defect” in a title typically refers to significant issues that can impact the ownership rights or the marketability of the property. Issues such as unresolved liens or lawsuits are classified as major defects because they pose substantial risks—these can result in financial liabilities for the property owner or could potentially prevent a clear sale or transfer of the property. Unresolved liens may indicate that there are debts tied to the property, and lawsuits could affect ownership rights, complicating future ownership or sale.

Other options, like minor clerical errors, may not substantively impact the legal ownership or the property's value and can often be corrected without major issues. Similarly, simple discrepancies in property boundaries, while important, might not constitute a major defect if they can be resolved easily. The presence of easements, while they can affect use and enjoyment of the property, are usually not deemed major defects since they are often known and accepted limits on property rights. Therefore, unresolved liens or lawsuits stand out as significant issues that directly affect ownership and must be addressed for a title to be considered clear and marketable.