Title
Legal ownership rights to a property — the bundle of rights that come with owning real estate.
Definition
Title refers to the legal ownership rights to a property — the documented evidence that a person has the right to own, use, and transfer real estate. 'Having title' means holding legal ownership. A 'clear title' means ownership is free from claims, liens, disputes, or other encumbrances that could challenge your rights.
Title is distinct from the deed. The deed is the document that transfers title; title is the ownership itself. A title search examines public records to trace the chain of title going back decades (or longer) and identifies any outstanding liens, easements, restrictions, or competing claims.
Title insurance protects owners and lenders against losses from title defects not discovered in the search — forged documents, unknown heirs, clerical errors, or fraud. Owner's title insurance is a one-time premium paid at closing and covers you for as long as you own the property. It's a relatively modest cost that can protect against enormous losses.
Related Terms
Deed
A legal document that transfers ownership of real property from one party to another.
Lien
A legal claim against a property that secures payment of a debt or obligation.
Due Diligence
The investigation and verification process buyers conduct before committing to a real estate purchase.
Escrow
A neutral third-party account that holds funds and documents during a real estate transaction.
Closing Costs
Fees and expenses paid at settlement when a real estate transaction is finalized.
Foreclosure
The legal process by which a lender repossesses a property when the borrower defaults on the loan.
Also in "T"
Tax Deed
A deed issued to the winning bidder at a tax deed sale — transferring ownership of a property seized for unpaid taxes.
Tax Lien
A government claim against a property for unpaid property taxes — investors can purchase these liens and earn interest.
Triple Net Lease (NNN)
A lease where the tenant pays property taxes, insurance, and maintenance costs in addition to rent.