Title

A person's right in real property and evidence of that right.

The term title refers both to a document, such as a warranty or quitclaim deed, and to the concept of ownership of real property.

With respect to the document itself, the kind of deed determines the quality of the ownership interest. For example, the title vested by a warranty deed means that the seller guarantees certain statements about the property, while the title vested by a quitclaim deed means simply that the seller quits whatever interest he has. If he has no ownership rights to a property, a quitclaim deed signed by him would give you the same ownership interest -- none at all!

Whenever you buy or sell a property, a "title search" is completed by a title attorney. A title search is the process of reviewing the files at your county courthouse to see if any claims (liens) have been made against the property. For example, a roofer who doesn't get paid would file a "mechanics lien" against your property -- a statement that he is owed certain monies for his work, which must be paid before the property can be sold.

Liens can also be filed by the state or federal tax authorities if you don't pay your taxes. These tax liens are usually payable before all other liens. Certain states allow the tax lien to become such a first lien on the property, which is then turned around and sold at auction as a tax lien certificate.

A lien waiver is a statement that you should have all workmen sign when you pay them, which states that they have been paid in full and cannot apply a lien against your property.

A "clear title" means that there are no claims against the property -- no mechanics liens, no unpaid property taxes, etc.

An "equitable title" means that you have only the right to possession, with the right to acquire legal title forthcoming when a particular condition has been met. For example, if you are purchasing a home on an installment contract, then you have the right to obtain real ownership (ie, a warranty deed) once the home is fully paid for. However, if you default on such a contract, you don't have the usual rights of redemption and other protections afforded by some states.

FAQ:

What kinds of deeds are involved in a foreclosure proceeding?
Foreclosure law in your state

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