What Does Title Mean In Real Estate?

To buy a home, you’ll need to learn a new vocabulary. That way, when words like “inspection,” “appraisal” and “escrow” get thrown your way, you won’t get lost in the lingo.

One word you should prioritize learning is “title.” Most of us recognize it as a name you give a book, but in real estate speak, it refers to your home.

Let’s explore the importance of house title (or home title) and how this legal concept protects your right to enjoy your home.

What Is A Property Title?

Your house title – or a property title or real estate title – is a legal way of saying you’re the rightful owner of a property. It’s a legal concept – not a physical document. A house title acts as proof of ownership and defines your rights as the owner, including your access to the property and ability to make home modifications as you see fit.

Your title also gives you the right to transfer ownership. If you partially own a home, you can only transfer your portion.

Why Having A House Title Matters

While a house title is a legal concept, not a legal document – you can think of it as a “receipt” for your home. Like any receipt, it establishes ownership. And it also establishes the privileges you have as the owner. These privileges include possession, control, exclusion, enjoyment and disposition.

When a home’s title is clear, there are no legal claims, liens or debts on the property. No one can knock on your door after you move in and argue that they’re the home's rightful owner.

The Rights Associated With A House Title

The rights you enjoy as a homeowner can vary by state to state or local laws. In some states, unpaid property taxes may limit your rights.

It’s important to have a clear title, know your local rules and understand how they affect your bundle of rights.

Here are brief explanations of each right a homeowner receives in their bundle of rights:

Right Of Possession

The person or party with the house title has a right to possess the property. If you have the title, you’re the legal owner of the property.

Right Of Control

You can use your property any way you’d like within the limits of the law. If your home is associated with a homeowners association, there may be extra rules and regulations to follow, like restrictions on loud music or specific pet breeds.

Right Of Exclusion

As the title holder, you have the right to prevent people from entering your home. You don’t have to allow anyone in your home that you don’t want there. Warrants for property searches and easements for utility company access, for example, can override your right of exclusion. But for the most part, you don’t have to let anyone in your home you don’t want there.

Right Of Enjoyment

As long as you’re not breaking any rules or laws, you can enjoy your property as you see fit.

Right Of Disposition

Disposition is when you transfer property ownership to someone else permanently or temporarily. As the title holder, you can legally sell or rent the property.

What Is The Difference Between A House Title And A Deed?

While both apply to homeownership, a title differs from a deed. A home title is the legal concept of homeownership, while a deed is a physical document that proves the legal transfer of homeownership. Both the buyer (grantee) and the home seller (grantor) sign the property deed.

The deed is a critical part of transferring property ownership, including transferring homeownership rights with the title. The home seller transfers title to the buyer through an escrow or title company on closing day.

The title company performs a public records search to verify the property title is legal and legitimate. The company confirms that the home belongs to the home seller and that they have the legal right to sell it. Sometimes roadblocks, like past due mortgage payments, unpaid home taxes or liens, can appear.

Ways Of Holding Title

There are different ways to hold title to a home. You can have sole ownership or share ownership with one or more people.

• Sole ownership: In this scenario, one person owns the property. When you hold title as the sole owner, you don’t need to consult anyone or get permission from anyone to authorize deals related to the home. If the owner dies without a will or trust, selling their home and transferring the title and ownership can be difficult to manage.
• Joint tenancy: In this scenario, two or more people, such as an unmarried couple, hold equal rights to the property and are labeled as joint tenants. If one owner dies, the surviving tenant(s) inherit equally in the deceased’s ownership share.
• Tenancy in common: This is another form of co-ownership. Two or more people hold equal rights to the property, allowing each party to manage their ownership share however they please. While a creditor can put a lien on one co-tenant’s share of the property, all property liens must be removed when selling the property, no matter which co-tenant carries the lien.
• Community property: This is the type of property owned by a married couple. Unless otherwise noted, the home a married couple purchases is typically considered community property. Either spouse can get rid of their portion of the property.

What Is A Title Defect?

You may discover title defects when you order a title search or check property records. A defective title has judgments or liens against it, and it can stop a title transfer and derail a home sale. Here are some common title problems:

• Liens: A lien is a legal claim against a property or piece of property. If the owner isn’t current on their mortgage payments or property taxes, there may be a lien on the property.
• Easements: An easement is typically a legal arrangement that grants an individual or an entity the right to use a portion of your property for a specific purpose. There are different easements, such as a utility easement that allows utility companies to build power lines on or close to your property.
• Encroachments: An encroachment refers to a neighbor building something on your property or something that hangs over your property. There are minor encroachments, like a neighbor’s fence. A major encroachment can be a portion of a home or an extension that intrudes on your property. A structural encroachment is when someone builds a structure on property they don’t own.

How To Protect Your Title

Before you buy a home or other property, look into different ways to protect yourself from title defects.

• Purchase contingencies: A contingent offer is an offer to buy a home once specific circumstances or criteria are satisfied. For instance, the appraisal contingency is a type of purchase contingency.
• Title insurance: This insurance protects homeowners from unexpected lawsuits, claims or liens from building contractors, unpaid property taxes and more. Most lenders require home buyers to have title insurance.

How Can I Get A Copy Of My House Title?

You’ll need a copy of your deed to prove you’re the title holder. Here are four ways to get a copy:

1. Online: You may be able to request a copy of a deed online through a third-party website or your local government website.
2. County recorder’s office: You can call or visit your county or city recorder's office to get a copy of your deed. The name of the office responsible for deeds may vary, but every municipality has a dedicated office to assist you.
3. By mail: If you prefer sending the forms by mail, you can download them from a related website or your county website, fill them out and toss them in a mailbox. This method may take more time than completing the process online.
4. Pay associated fees: Many recorder’s offices charge a fee to get a copy of a deed. Pay these fees to avoid any delays with your paperwork.

Once you’ve filled out the paperwork, your deed will be mailed to you in the time specified by your method of choice. Patience is key. But with the deed in hand, you can always prove you own the home.

The Bottom Line: A House Title Is A Critical Step Toward Owning A Home

When you buy a home, the transfer of title is a major step in the process. Before you buy (or sell) a property, establish whether the title is clear or cloudy. Fortunately, you don’t have to figure this out on your own. Connect with a real estate agent who can answer any questions about titles.