Real Estate Glossary > T > Title Definition

A legal document listing the history of ownership of the home. Buyers get a preliminary title report from an escrow agent or attorney within a week after they reach mutual acceptance The point when both the buyer and seller agree on the price and terms of a deal. on an offer. The report identifies all parties with a legal claim to the property, what items need to be cleared from title before the new buyer can take possession, and if there are any easements Common land or utilities owned publicly and used by the local community. Easements are also a right to use another person's land for a specific purpose. or encroachments Fences or other parts of neighboring lots that cross property lines. Encroachments should be listed in the title report or the seller disclosure documents. on the property. Once the transaction closes, the buyers will receive a final title policy recording their names as the new legal owners along with the principal loan amount. This information is part of the counties' public records.

An examination of public records by a lawyer or escrow A neutral third party or attorney that handles the exchange of money and documents once mutual acceptance is reached on an offer. agent to determine the history of ownership of a particular piece of property and identify any liens Any legal claim of ownership listed on the title of the home. , encroachments Fences or other parts of neighboring lots that cross property lines. Encroachments should be listed in the title report or the seller disclosure documents. , easements Common land or utilities owned publicly and used by the local community. Easements are also a right to use another person's land for a specific purpose. , restrictions or other factors that might affect the title. This step must be completed before a buyer can purchase title insurance Title insurance protects against losses resulting from problems with the title. The sellers pay for the buyer's policy, and the buyer pays for his lender's policy to ensure that the lender gets clear access to the title. .