Title Defect definition

Title Defect means any Encumbrance or other matter, or series of related Encumbrances or other matters, in each case, that causes any Seller not to have Defensible Title with respect to such Seller’s Assets; provided that the following shall not be considered Title Defects:

Title Defect has the meaning set forth in Section 7.1.

Title Defect means with respect to a Lease any lien, encumbrance, adverse claim, default, expiration, failure, defect in or objection to real property title, other than Permitted Encumbrances, that alone or in combination with other defects renders Sellers’ title to the Lease less than Defensible Title.

Examples of Title Defect in a sentence

• Seller shall notify Buyer in writing within five (5) days of Buyer's notice if Seller intends to cure any Title Defect or other objection.

• In the event that (i) Seller elects not to attempt to cure any such Title Defect, or (ii) Seller is unable to cure any such Title Defect within such twenty (20) days from the Scheduled Closing Date, Seller shall so notify Purchaser and Purchaser shall have the right to terminate this Agreement pursuant to this Section 6.3(a) and receive a refund of the Xxxxxxx Money Deposit, together with all interest which has accrued thereon, or to waive such Title Defect and proceed to the Closing.

• The aggregated Title Defect Value(s) for any Asset shall never exceed the Allocated Value of such Asset.

• If, within the three-day period, Purchaser fails to notify Seller of Purchaser’s election to terminate, then Purchaser shall be deemed to have waived the Title Defect and to have elected to proceed to the Closing.

• Any Title Defect or other objection disclosed by the Title Insurance Commitment (other than liens removable by the payment of money) or the Survey which is not timely specified in Buyer's written notice to Seller of Title Defects shall be deemed a Permitted Exception.

More Definitions of Title Defect

Title Defect means any Lien, obligation (including contract obligation), defect, or other matter (including a discrepancy in Net Revenue Interest or Working Interest) that causes Seller not to have Defensible Title in and to the Leases, the Xxxxx or the Units. Notwithstanding the foregoing, the following shall not be considered “Title Defects:”

Title Defect means any exception in the Title Insurance Commitment or any matter disclosed by the Survey, other than a Permitted Exception.

Title Defect means any lien, charge, Encumbrance, defect, or other matter that causes Seller not to have Defensible Title in and to the Assets as of the Effective Time; provided that the following shall not be considered Title Defects:

Title Defect shall be as defined in Section 6.3.

Title Defect as defined in Section 4.03.

Title Defect means: (a) Seller’s Subject Interests is subject to a Lien other than a Permitted Encumbrance; (b) the Net Revenue Interest of Seller in the Subject Interests is less than the Net Revenue Interest shown in Exhibit A, Part 2. In no event shall either a Permitted Encumbrance or an individual Title Defect having a Title Defect Value of less than $50,000 constitute a Title Defect for purposes of this Agreement. In evaluating whether an encumbrance, encroachment, irregularity, defect in or objection to title constitutes a Title Defect, due consideration shall be given to the length of time that the Subject Interests affected thereby have been producing Hydrocarbons, whether such Subject Interests are in “pay status” and whether such defect is of the type expected to be encountered in the area involved and is customarily acceptable to prudent operators and interest owners. (As used herein, “pay status” means payments being made by a third party for the production from the Subject Interests without indemnity from the Seller of production except such indemnities as are customarily included in division orders, transfer orders, product purchase agreements and similar instruments commonly used in connection with the payment of proceeds from production). In no event shall any of the following constitute Title Defects (i) defects that have been cured by possession under applicable statutes of limitation; (ii) failure to recite marital status in documents; (iii) lack of heirship or succession proceedings; failure to subordinate mortgages granted by a mineral lessor; (iv) lack of survey; (v) failure to record releases of lien, production payments or mortgages that have expired of their own terms; (vi) failure to obtain or record releases of prior oil and gas leases that have expired in accordance with their terms; (vii) defects arising out of lack of corporate or other entity authorization of any party other than Seller, unless Purchaser provides evidence that the action was not authorized and provides affirmative evidence that such failure results in another person’s superior claim of title; (viii) any delay in delivering an assignment earned under a farm out, participation or similar agreement unless there is evidence that the xxxxxx or other third party record title holder has refused to deliver such assignment; (ix)) defects arising from any change in Laws after the execution date of this Agreement; (x) Leases that are subject to termination upon expiration of their ...

Title Defect shall have the meaning given that term in Section 4.02.