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Defective mortgages are the source of numerous title claims. A mortgage may. be legally ineffective for a variety of reasons. The propertyâs legal description may be. missing or incorrect. Maybe the mortgage lacks an affidavit required by state law. Perhaps only one spouse has signed the mortgage even though they are joint owners. Whatever the reason, a defective mortgage can cause big headaches for title. insurers, lenders and their counsel.
Paragraph 6C(1) says, in bold, If Seller fails to furnish the existing survey or affidavit within the time prescribed, Buyer shall obtain a new survey at Seller's expense no later than 3 days prior to Closing Date.. This means the seller will be responsible for the cost of a new survey if he canât find the existing survey.