What’s a Real Estate Title? Understanding Ownership and Rights
When purchasing property in North Carolina, understanding real estate titles is essential. A title determines legal ownership and grants rights to use, transfer, or modify the property. Whether you are a buyer, seller, or investor, knowing how a title works can help prevent legal complications in real estate transactions.
What Is a Real Estate Title?
A real estate title is a legal document that establishes ownership of a property. It includes:
The owner's name and any co-owners.
Property rights (such as mineral or water rights).
Restrictions or easements affecting use.
Unlike a deed, which is a physical document transferring ownership, a title is a legal concept referring to the rights associated with a property.
How Does a Title Affect Property Ownership?
Holding title to a property gives the owner certain rights, including:
✔ The right to use the property.
✔ The right to sell or transfer ownership.
✔ The right to lease the property.
✔ The right to borrow against the property.
However, a title may also include liens, easements, or disputes that impact these rights.
Why Is a Title Search Important?
A title search is a review of public records to verify that a property's title is clear of defects or legal issues. A real estate attorney or title company will check for:
Unpaid liens (mortgages, taxes, or contractor claims).
Ownership disputes (conflicting claims on the property).
Easements or encroachments (rights given to others to use the land).
A clear title means no legal issues are found, while a clouded title may require legal action to resolve before a sale can proceed.
What Is Title Insurance and Why Do You Need It?
Even with a title search, hidden issues can arise after a purchase. Title insurance protects buyers and lenders from financial losses due to undiscovered title defects, such as:
Clerical errors in public records.
Undisclosed heirs claiming ownership.
Forgery or fraud in past transactions.
Most lenders require lender's title insurance, but owner’s title insurance is optional and highly recommended for full protection.
What Happens If There’s a Title Dispute?
If a title dispute arises, legal action may be required to determine ownership. A quiet title lawsuit can help resolve competing claims and establish clear ownership. If you are facing a title dispute, consulting an experienced real estate attorney can help protect your rights.
Get Legal Help with Real Estate Titles in North Carolina
A real estate title is one of the most critical aspects of property ownership. Whether you're buying, selling, or facing a title dispute, working with an experienced attorney can ensure a smooth process.
📍 Jonathan Richardson Law serves clients throughout Wake County, including Cary, Raleigh, Apex, Holly Springs, and Morrisville.
📧 Contact us at jrlaw@jrlawteam.com for professional guidance on real estate transactions.
Legal Disclaimer:
This blog post is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
