Law Office of Kimberly A. Abrams & Associates, P.A.

What is the significance of a title when purchasing real estate?

Title is an important concept in the law with significant implications for real estate transactions including residential real estate transactions. Title refers to who has legal ownership of a property and the right to use the property. Who has legal ownership of a property and the right to use a piece of property obviously has significant implications for the purchase of real estate and is an important part of the real estate closings process which may involve a title search and title insurance.

It is important when purchasing real estate to ensure you have legal title to the property. Without legal title, the purchaser can run into problems. A defective title may negatively impact the establishment of ownership of the property, may negatively interfere with resale of the property or negatively impact the purchaser's ability to exercise rights over the property. It is important to conduct due diligence and helpful to have trained guidance to avoid running into unexpected title problems.

Problems with a title, referred to as clouds on a title, can include previous claims of ownership on the property, liens or covenants on the property. If another party has a claim of ownership to the property, such as through adverse possession or otherwise, this can be problematic for future owners. In addition, any liens must be paid before the property can be sold. Covenants also place limits on the use of the property so they are important to be aware of.

When purchasing real estate, it is important to be familiar with the entire process and the legal implications of the purchase process. Because everyone wants a successful real estate transaction, it is helpful to be knowledgeable concerning the important implications of legal title to property.

Source:, "What Does Title Mean?" Accessed Oct. 26, 2017

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