Title
The legal right to own and use a property. Title is not a single document; it is shown by the deed and public records, and must be clear for a sale to close smoothly.
Also called: property title, legal title, ownership
Related terms
The signed legal document that transfers ownership from the seller to the buyer. It is recorded with the county after closing to make the transfer part of the public record.
A review of public records to confirm who owns a property and find liens, easements, judgments or other problems. Its results go into the title commitment before closing.
A one-time policy that covers losses from title problems missed by the search, such as forgery or unknown heirs. Lenders require a lender's policy; the owner's policy protects the buyer. Who pays varies by state and local custom.
Any claim, lien or error in the records that casts doubt on who owns a property. It usually must be cleared before the sale can close.
The recorded history of every transfer of a property from one owner to the next. Gaps or errors in the chain can delay a sale until they are fixed.