What Is Perfect Title?

Perfect title refers to ownership of a property through a deed free of any liens or defects. This is sometimes referred to as a good, clean, free and clear, or absolute title.

Understanding Perfect Title

A perfect title refers to a state of ownership resulting from a deed unblemished by liens or other defects. Such a deed provides the holder with clear ownership that cannot be challenged by a creditor or otꦇher claimant. The deed is in optimal condition for a smooth sale or transfer of property.

It is important to understand the difference between title and deed. A title refers to the 澳洲幸运5官方开奖结果体彩网:rights of ownership of a specific asset, often a unit of real estate. The deed refers to the physical document prepared for a sale or transfer. The deed lists legal details of the property such as exact location and any 澳洲幸运5官方开奖结果体彩网:easements or liens on the property. When preparing to issue a mortgage for the purchase of a property, a title company will thoroughly research the title history of that property. The goal of this research is to uncover any hidden d📖efects that would have to appear on 🉐the deed being prepared.

Common Obstacles to Perfect Title

The 澳洲幸运5官方开奖结果体彩网:title search may seem archaic in the age of electronic record keeping, but it safeguards the lender and pu✨rchaser against legal problems that could arise and dramatically threaten the value of a property. Below are some defects that a thorough search can uncover.

• Easements are third-party claims to usage of some portion of a property. This can range from the harmless, such as an obsolete cart path running through a backyard, to a serious problem such as a government easement to build a future road through a property.
• The legality of a former deed can be challenged for a wide variety of reasons. Perhaps it was made by someone not of sound mind, a minor was involved, or a familial relationship was incorrectly listed.
• Previously unknown heirs to a former deed holder may come forward to make a claim on the property.
• Creditors to a former deed holder may hold legitimate claims on the property to recover their debts. A common example of this is unpaid 澳洲幸运5官方开奖结果体彩网:property tax.
• Human error in past deed preparation is the most common defect. This can occur in the public registrar's office as well in the clerical work of any lender, appraiser, or title company formerly associated with the property.

Once the title has cleared the title search, ideally in perfect form, the title company will produce an opinion letter summarizing its findings. It will also issue an 澳洲幸运5官方开奖结果体彩网:insurance policy protecting the lende❀r and purchaser against any further unforeseen defects in title.