The problem with structural defects was highlighted by two good responses above, lots of people don't know what they are talking about.

Just FYI.Can the existence of a lenders policy help resolve a title defect in favor of the owner?

Unless you’re afraid of turning up a major defect that you might have to disclose at a later date.

Built in title defect that has to be corrected before financing or selling.There are many horror stories at tax sale, and I've seen a bunch of people go down in flames. 

And I've heard really troublesome stories of people selling FSBO because they felt they could much more easily get away with some defect about their property if they increased their chances of dealing with an unrepresented buyer.

These properties need to have a lot of research done and possibly multiple inspections to discover any defects.

I have purchased low priced properties before because with my experience I was able to identify ways to clear apparent title defects but I always hired an attorney to handle the actual litigation if it came to that. 

The recourse for a defect in title i.e. a mortgage or lien against the property, is probably limited to suing the Estate as long as there's something there to recover from. 

I would think you could avoid a lien.All that said, Isn't it possible to just get a discount on the property for this defect and you control the work after closing. 

I think for repairs (replacing something defective that is already in place), the permits aren't going to always apply but it depends on the scope of the work.