Title

A legal document that gives evidence of an individual's ownership of property. A good title is required for the sale of real estate.

 

There are several types of titles: Good/Marketable, Doubtful, and Bad/Cloudy.

 

  • A Good/Marketable title is a title that is free of liens and legal questions as to ownership of the property. A good or marketable title can be freely sold or transferred to another owner for a price. A title company will be hired ensure that a title is clear during the process of selling real estate.
  • A Doubtful title is a title which the court does not consider clear enough to enforce, nor defective enough to declare as bad. Common law states that all titles must either be good or bad, and that doubtful titles will remain unknown until further action or change.
  • A Bad/Cloudy title is a title which does not clearly convey ownership on a property. A bad or cloudy title will prevent a homeowner from selling property, although it can be rectified by taking certain steps. Certain things that may cloud a title:

-Unpaid taxes or unsatisfied liens

-Faulty or incomplete certificate of occupancy

-Incorrect survey

-Uncorrected building violations

 

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