American Land Title Association (ALTA) Practice Exam 2025 – Your Comprehensive All-in-One Guide to Success!

The term "title defect" action specifically involves legal measures and steps taken to address and resolve disputes concerning the validity of a property's title. A title defect can include issues such as liens, encumbrances, or other claims against the property that may impact ownership rights. In such situations, parties may pursue a legal resolution to clarify or eliminate the defects, ensuring that the title is clear and marketable.

By focusing on the resolution of disputes regarding the validity of the title, this action ensures that a property can be transferred free of issues that would otherwise hinder its sale or financing. It emphasizes the need for a clear title, which is crucial for any real estate transaction, as a valid title is essential for the security of ownership.

Other options, while related to real estate transactions, do not address the specific legal nature and context of title defects. For instance, resolving title insurance claims is a part of the aftermath of identifying title defects but does not encompass the proactive steps taken to litigate or settle those disputes. Likewise, actions to increase a property’s value or document ownership transfers do not fundamentally relate to correcting flaws or challenges in the title itself.