A certificate of title is a legal document that provides evidence of ownership for a specific piece of real estate. It is issued by a government agency, such as a land registry office, or by a title insurance company. The certificate of title contains important information about the property, including its legal description, dimensions, and boundaries. It also lists any liens or encumbrances on the property, such as mortgages or judgments.
The certificate of title also contains the names of the current owner(s) of the property and any previous owners, along with the date of transfer of ownership. This information is used to establish a clear chain of title, which is the history of ownership of a property.
A certificate of title is important because it establishes the legal ownership of a property, and it is often required when a property is sold or transferred. Lenders also require a certificate of title to ensure that there are no liens or encumbrances on the property that could affect their interest in it.
It’s also important to note that a certificate of title is not the same as a title deed, which is a document that is usually executed when the property is sold and it contains all the terms and conditions of the sale, and the rights and obligations of both the buyer and the seller
Content of certificate of title typically includes the following information:
- Property address
- The legal description of the property
- Names of the current owner(s) and any previous owners
- Date of transfer of ownership
- Any liens or encumbrances on the property, such as mortgages or judgments
- Signature of the issuing authority, such as a government official or a representative of a title insurance company