Title is a legal document establishing evidence of ownership.
Certificate of Title
An opinion rendered by an attorney as to teh
status of title to a property, according to the public records. This
certificate does not hold the same level of protection as title
An insurance policy that protects the insured
against loss arising from a property ownership dispute. Title
insurance policies are typically obtained for the buyer and the
An examination of the public records to
determine the ownership and encumbrances affecting the property.
A document indicating the current state of title.
The report includes information on the current ownership,
outstanding deeds of trust or mortgages, liens, easements,
covenants, restrictions, and any defects.
Chain of Title
Chronological order of conveyance of a parcel of
land from the original owner to the present owner. An abstractor can
research title to property going back to the date the property was
granted to the United States.
Free and Clear Title
A marketable title, free of liens and legal
questions as to the ownership of the property. Most lenders require
a clear title prior to closing.
Cloud on Title
In contrast to a free and clear title, a
clouded title has an outstanding claim or encumbrance that, if valid, would
affect or impair the owner's title.