Title
In real estate, “title” refers to the legal ownership rights to a property. When someone has title to a property, they have the legal right to use, possess, control, and transfer that property.
A title can be held by individuals, entities, or even governments, depending on the circumstances. It is established and evidenced by a document called a “deed,” which is recorded in the appropriate government office, typically the county clerk’s office or registrar of deeds, to provide public notice of the property’s ownership.
A clear and marketable title is essential in real estate transactions to ensure that the buyer receives full ownership rights to the property free from any encumbrances, such as liens, claims, or restrictions, that could affect their use or enjoyment of the property.
Title searches and title insurance are commonly used to verify the ownership history of a property and protect buyers and lenders from potential title defects or challenges. A title search involves examining public records to trace the chain of ownership and identify any issues that may affect the title’s validity. Title insurance provides financial protection against losses resulting from title defects that were not discovered during the title search.
In summary, title represents the legal right to ownership of a property, and establishing clear title is crucial in real estate transactions to ensure a smooth transfer of ownership and protect the interests of all parties involved.