- An examination of public records to ensure that an owner of real property has the right to transfer ownership of the title. This type of search is designed to identify disparities in the chain of title, liens, problems with the legal description of the property, judgements against the owner, etc.
Related Terms and Acronyms
- Abstract of Title (ab) — Abbreviation,
➥ AB is a common abbreviation for Abstract of Title when used in property listings and real estate classifieds.
- A written history of all the transactions that bear on the title to a specific piece of land. An abstract of title covers the time from when the property was first sold to the present.
- Caveat — Definition,
- A charge or instrument placed on land title.
- To give warning, notice or caution; beware.
- Certificate of Title — Definition,
- A written document stating that the title to a piece of property is legally vested in the present owner.
- Chain of Title — Definition,
- Legal records that trace ownership of a property from the most recent owner to the original owner.
- Deed (D) — Acronym, Very Important,
➥ Used to transfer ownership of assets, often land or automobiles.
- A document that provides title to property and is filed with a country recorder.
- Examination of Title — Definition,
- A review of public records and title abstracts to determine the chain of ownership of a property.
- Fee Simple — Definition,
- Outright ownership of real estate, free of any liens or other claims against title.
- Fee Simple Defeasible — Definition,
- When a person has outright ownership of real estate (free of any liens or other claims against title), but the use of the property is restricted.
- Title — Definition,
- Evidence of a person's right to possession ownership of a property.
- Title Company — Definition,
- A company that checks a property's title for liens and other obstacles to sale, fixes any clouds to title, supervises the closing transaction, and makes sure that money transfers in a purchase are processed correctly.
- Title Insurance — Definition,
- Insurance that covers title defects and ownership challenges on a property.
- Title Report — Definition,
- A report that reveals any competing claims, liens, or other problems relating to a property. A title report is required before title insurance will be issued. Also known as a "Preliminary Title Report" or "Prelim."
- Torrens System — Definition,
- A system that is provided by Provincial law for the registration of land titles. The system records the state of the title, including ownership and encumbrances without the necessity of an additional search of the public records. Also known as the "Land Titles System."
- Transfer of Title (TOT) — Acronym,
- A document signed by the seller and purchaser transferring ownership, at which time the document is registered against the property.