Which of the following is NOT a title defect under the ALTA 2006 form policy?

Liens agreed to by the insured are not considered a title defect under the ALTA 2006 form policy because they are voluntarily accepted by the insured party. In this context, when a lien is specifically acknowledged and agreed to by the insured, it does not reflect the kind of hidden risks or unexpected burdens that title insurance is intended to protect against. Title insurance is designed to cover issues that are not known or agreed to by the insured, such as forged documents, improper recordings, or undisclosed liens.

The other options represent issues that could lead to a claim under a title insurance policy. A document executed under a falsified power of attorney reflects fraud, which can undermine the validity of a title. A document not properly recorded may result in claims against title by parties who have not been officially recognized in public record, hence impacting the title’s integrity. Similarly, liens not disclosed in public records can represent hidden risks that might not be known to the insured, making these issues legitimate title defects.