What Is A House Title?…

A house title denotes ownership rights: It is the bundle of rights that dictates who has legal or equitable interest in the property. It also details the limitations on ownership. For example, depending on how the title is held, you may or may not be able to sell the home yourself, without permission from anyone else.

While a house title is conceptual, a house deed is a physical, written document declaring a person’s legal ownership of a property. In real estate, the deed records a property’s title and the transfer of that title between two parties or individuals. Your county or municipal clerk’s office typically keeps a copy of deeds for all properties in its jurisdiction.

When you purchase a home, a title company conducts a title search to ensure that the seller is the sole owner of the home and no one else has any legal claim to or against the property. Lenders often require borrowers to purchase lender’s title insurance as well, which protects the lender against loss for the loan amount if someone has a claim against the property.

If you don’t have clear title to your home, someone else might be able to argue that they’re the legal owner of the property and that the person who sold it to you didn’t have the right to do so. This can lead to major legal complications and headaches that you definitely want to avoid.