Common use of Title Defect Value Clause in Contracts

Title Defect Value. In determining which portion of the Assets constitute a Title Defect, it is the intent of the parties to include, to the extent possible, only that portion of the Assets that is adversely affected by the defect. The Defect Value shall be determined by the parties in good faith taking into account all relevant factors, including, but not limited to, the following: (a) If the Title Defect represents only a possibility of title failure, the probability that such failure will occur; (b) The legal effect of the Title Defect; and (c) If the Title Defect is a lien or encumbrance on the Assets, the cost of removing such lien or encumbrance.