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A Certificate of Title is a legal document that provides the identification of ownership of certain property. The three most common forms of a certificate of title that consumers encounter are those for automobiles, homes and land. If a loan or mortgage exists on the car or home, the certificate of title is usually held by the lending institution until the loan is satisfied.
When cars are sold, the owner will sign the certificate of title over to the new owner. Signing the certificate passes legal ownership of the vehicle over to the buyer.
When homes are purchased, a title search is performed to assure the buyer that the certificate of title can be passed without legal dispute. Title insurance is often purchased to guarantee that errors were not made during the title search and that future legal claim can be settled without loss of the home.
A deed is a written document used to pass the certificate of title for a home to its new owner. |
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