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What Is a Certificate of Title?

Real estate properties have certificates of title that serve as proof of an owner that he or she possesses the property in question. The certificate of title is a legal document that identifies an owner of a real property, whether it is land or tangible assets.

Aside from naming the owner of the property, a certificate of titles contains relevant information regarding the property. It details the status of the property along with the easements that may exist or any encumbrances on the property. The certificate of title provides a brief overview of the property, which helps any potential buyer or lender review the condition of the property.

A certificate of title is issued by a title company that provides extensive examination of the property for a party that may wish to acquire the property or for the owner who wishes to use the property as collateral. The title company performs an exhaustive research of the history and current situation of the property in order to provide the necessary and relevant information to the requesting party.

There are several sections in a certificate of title. One section provides the physical information of the property. All the physical attributes of the property are enumerated such as the dimensions, the location, and the description of anything that may occupy space within the property. Another section is devoted to providing information regarding the current owner. This section provides the name, address, and other identifying information of the owner. Another section may detail any claims made on the property such as mortgage, loans, and taxes.

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