What does the term "Title" refer to in real estate?

In real estate, the term "Title" refers to the legal right to own, use, and sell a property. This legal concept encompasses ownership rights, allowing a person or entity to exercise control over the property, which includes the ability to sell it, rent it out, or pass it on to heirs. Title is often documented through a deed and represents a pivotal element of property transactions, as it establishes ownership and the extent of an owner's rights and interests.

The significance of understanding "Title" lies in its role in ensuring that the property is free from legal disputes over ownership. A clear title indicates that the property can be legally sold or transferred without issues, whereas a clouded title might present challenges, such as liens or claims from other parties. Thus, grasping the definition of title is essential for anyone involved in real estate transactions, as it assures the buyer of their rights and the seller of their ability to convey those rights.