Property Title
A property title is a crucial document that serves as legal proof of ownership for a property. During the mortgage transaction process, the title is formally transferred to the buyer at closing, once all contracts are signed and the seller receives payment for the sale.
Titles to homes are issued by a title company, which identifies you as the rightful owner of the property. In addition to providing titles, these companies also offer “title insurance.” The title company ensures that the title is valid, protecting you from potential lawsuits related to property disputes and providing concrete evidence of your ownership.
To insure the title, the title company conducts a thorough investigation of property records. This investigation confirms that you are the legal owner of the property, ensures that no other individuals have claims to it, and checks for any liens, unpaid taxes, or existing mortgages associated with the title.
In the mortgage process, both your name and any co-borrower’s name will be included on the title document. If, in the future, you need to add or remove someone from the title—due to a change in ownership or other circumstances—you can do so by utilizing a deed. Understanding the importance of property titles and title insurance is essential for protecting your ownership rights and navigating the complexities of real estate transactions.
