What Is Title in Real Estate?

Looking for a deeper explanation? Explore the full guide: Real Estate Title Guide →

In real estate, title refers to the legal rights of ownership to a property. Having “title” means you have the legal authority to use, control, transfer, or sell the property. Title is not a physical document—it's the legal ownership interest recorded in public records.

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💡 Why Title Matters in Real Estate

Title determines who legally owns the property and what rights—if any—others may have. Before a sale can close, the buyer must receive a clear, marketable title free of liens, claims, or ownership disputes.

  • Confirms who legally owns the property
  • Reveals liens, easements, and restrictions
  • Affects the buyer’s ability to get financing
  • Impacts taxes, inheritance, and ownership transfer
  • Must be clear for title insurance to be issued

See also: What Is a Title Search?

📌 What Does Title Include?

A property’s title includes several key components that describe ownership and legal rights:

  • Ownership interest (who owns the property)
  • Vesting (how ownership is held)
  • Chain of title (ownership history)
  • Liens & judgments (claims against the property)
  • Easements & encumbrances (rights granted to others)
  • Legal description of the property
  • Recorded documents that affect ownership

Related: What Is Vesting?

🔎 Title vs. Deed: What’s the Difference?

Many people confuse “title” with “deed,” but they are not the same:

  • Title = the legal ownership rights.
  • Deed = the document that transfers those rights.

When you buy a home, the deed is recorded to show that title has transferred to you.

See: What Is a Deed?

❗ FSBO Warning: Title Problems Can Delay Closing

Title issues—called clouds on title—must be resolved before a sale can close. Some issues require legal action or a quiet title process.

  • Unpaid liens or judgments
  • Unreleased mortgages
  • Boundary or access disputes
  • Probate or inheritance issues
  • Unknown heirs or conflicting claims
  • Clerical errors in public records

Learn more: Cloud on Title

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