A condition where complete real estate ownership is impaired by unsettled claims and liens, which may prevent an owner from selling the property.
A 'Cloud on the Title' refers to an outstanding claim, lien, or encumbrance that can potentially impair or affect the owner's title to a property. Resolving this issue is crucial for attaining a clear, marketable title when buying or selling real estate.
Color of Title refers to a condition in which a claim to title appears on the surface to be valid but is fundamentally void due to some defect.
A good and marketable title assures the buyer that the seller has the legal right to transfer ownership and that there are no defects, liens, or other encumbrances on the property.
An insurable title refers to a property title that a title insurance company is willing to insure, ensuring that the title is clear of any disputes, defects, or encumbrances which could affect the ownership or value. This term is significant in real estate transactions to mitigate risk and provide protection to the buyer or lender.
Lender’s Title Insurance, also known as Mortgagee’s Title Insurance, provides protection to mortgage lenders against any issues that may arise with a property's title, such as disputes or defects.
A marketable title is defined as a title free from significant defects, ensuring that a court will enforce the title's acceptance by a purchaser. This concept contrasts with a 'cloud on the title,' which indicates a defect or potential issue that could limit marketability.
A merchantable title, also known as a marketable title, is a legal concept indicating that a property title is free from significant encumbrances or defects, providing clear ownership and the right to transfer the property.
An Owner's Title Policy, also known as Mortgagor's Title Insurance, provides protection to property owners against potential losses due to title defects, liens, or other legal encumbrances on the property that may arise after purchase.
"Perfecting title" refers to the legal process of removing any "clouds" or claims against a real estate title, ensuring that the property has a clear and legally sound ownership status. This often involves actions such as paying off liens, resolving disputes, obtaining quitclaim deeds, and addressing other title defects. The goal is to ensure that the title is marketable and can be transferred without any legal challenges to the ownership rights.
A quiet title suit is a legal action taken to settle ownership disputes and remove any clouds on the title of real property, ensuring the owner has clear and undisputed rights to the property.
A Special Warranty Deed is a type of deed in real estate where the grantor warrants only against title defects or claims that arose during their ownership of the property, not for previous owners.
