What is a title defect commonly referred to as?

A title defect is commonly referred to as a "cloud on title." This term signifies any claim, lien, or encumbrance that may affect the ownership of a property and can impede the ability of the property owner to sell or transfer the title. Clouds on title can arise from various issues, such as unpaid taxes, unresolved claims from former owners, or mistakes in the property description in earlier deeds.

Addressing a cloud on title is crucial for ensuring clarity and security in property ownership, as it can lead to legal disputes or financial difficulties if not resolved before a transaction takes place. In real estate transactions, it is essential for buyers and sellers to thoroughly examine the title to ensure that no clouds remain that could affect the legitimacy of their ownership or title transfer.

The other options relate to different concepts in property law. A grantor refers to a party who transfers property to another party, a referee's deed is a type of deed used in foreclosure sales, and escheat pertains to the process by which property reverts to the state when no heirs or claimants are left. These definitions, while vital to understanding property law, do not pertain directly to the issue of title defects.