If there is a defect on a property's title, what effect does it have on the property's value?

When a property has a defect on its title, it typically creates uncertainty regarding ownership and can lead to legal disputes. Such uncertainties are often viewed negatively by potential buyers, which can decrease the perceived safety and security of ownership. This diminished confidence can lead to a decrease in demand for the property, hence resulting in a reduction in its market value. Buyers are usually less willing to pay full price for a property with an unclear or problematic title due to the risks involved in unresolved legal issues, like liens or claims from third parties. Therefore, the presence of a title defect generally leads to a decrease in the property's overall value.