Title
Title is the legal right to own, use, and dispose of real property, representing the bundle of rights that come with property ownership.
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Exam Tip
Remember DEEPC: Disposition, Enjoyment, Exclusion, Possession, Control.
What is Title?
Title represents the legal ownership of property and the rights that come with it. Having "clear title" means there are no liens, encumbrances, or disputes about ownership.
Bundle of Rights
Property ownership includes these rights (memory aid: DEEPC):
| Right | Description |
|---|---|
| Disposition | Right to sell, give away, or will the property |
| Enjoyment | Right to use property without interference |
| Exclusion | Right to keep others off the property |
| Possession | Right to occupy the property |
| Control | Right to use property within the law |
Title Search
Before closing, a title search examines public records to verify:
- Current owner has the right to sell
- No outstanding liens or encumbrances
- Property boundaries are accurate
- No pending legal actions
Title Insurance
| Type | Who It Protects | Duration |
|---|---|---|
| Owner's Policy | Buyer | As long as buyer owns property |
| Lender's Policy | Mortgage lender | Until loan is paid off |
Title Defects (Clouds on Title)
- Unpaid taxes or liens
- Errors in public records
- Unknown heirs
- Forgery in chain of title
- Boundary disputes
Study This Term In
Related Terms
Deed
A deed is a legal document that transfers ownership (title) of real property from one party to another.
Lien
A lien is a legal claim against a property that must be paid when the property is sold, serving as security for a debt or obligation.
Encumbrance
An encumbrance is any claim, lien, or liability attached to real property that may diminish its value or affect the owner's ability to transfer clear title.
Title Insurance
Title insurance is a policy that protects property buyers and lenders against losses from defects in title, such as liens, encumbrances, or ownership disputes that existed before purchase.
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