Real Estate Glossary

What is Legal Blemish?

A defect or issue with a property's title or legal status that could negatively impact its ownership or transfer. Legal blemishes can include issues such as unpaid taxes or liens, unresolved boundary disputes, unresolved zoning violations, or outstanding legal judgments. These blemishes can make it difficult or impossible to sell or finance a property, and they must be cleared up before a sale can be completed. A title search is typically conducted to identify any legal blemishes before a sale, and a title insurance policy can help protect the buyer or lender from financial loss resulting from any legal blemishes that were not revealed during the search.