What Is A Certificate Of Title?
A certificate of title is an official statement or municipal-issued document that identifies the owner(s) of personal or real property. It is a document issued by a title abstractor giving a legal opinion on the status of a property’s title.
A certificate of title is an essential document that must be issued to transfer title or rights in property and thus making it a relevant instrument in the real estate sector. When properties want to change hands either by outright purchase or gift, the owner must unfailingly guarantee the buyer that the title is free and clear of anyone else’s claims. A part of that process is demonstrating proof of ownership through means of a certificate of title. Usually, it applies to real estate. However, this does not exclude other businesses such as vehicles, trucks, aircraft, and watercraft.
More than ever, the court is replete with cases that have to do with land disputes due to people’s obliviousness concerning certificates of title. Many people believe that the mere issuance of receipt confirming payment to a parcel of land is all there is to become rightful landowners.
A certificate of title is issued to an individual showing him as the legal owner of a property after detailed examinations might have been performed by a title insurance company. It is worthy of note that the certificate by itself is not a guarantee of a free and clear title. A buyer must complete a title search before settling large transactions.
Certificate Of Title Example
Mrs. Flo, an astute business magnate, decided to add to her real estate by building a gas station and shopping mall. This venture would require some hectares of land. To the dismay of many, Mrs. Flo turned down most of the offers she got. And the sole rationale behind it was because most people who claim to be landowners are, in fact, land occupiers with no evidence of proof tying the title to them. Mrs. Flo, however, promised to be willing to buy when they can tender a certificate of title that would protect both the seller and buyer from any claims arising from prior or unknown unrecorded or fraudulent activity that might have occurred on the property.« Back to Glossary Index