Definition : Defect in title

The situation of an immovable where its holder’s property titles are susceptible of partial or total contestation, because of third party rights upon the immovable. A defect in title may exist, for example, if the immovable was incompletely described in a previous sale or when the seller did not have the full capacity to dispose of it. In a co-ownership, this is also be the case where a private portion encroaches on the common portions of the immovable, of which the co-owner holds only an undivided share. Title defects can usually be corrected to give the owner of the immovable a clear title.

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You move into your new condo. A few weeks later, a bailiff knocks on your door and serves upon you a notice of preservation of a legal hypothec of construction. He also served all your neighbors. Reading this document, you learn that a dispute remains unresolved between the contractor and a supplier (or subcontractor), concerning work performed or materials furnished that have not been paid by the contractor. Often, these problems are resolved through the developer. But sometimes, a co-owners must institute legal proceedings for the cancelation of a legal hypothec from his title.  
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