Until the legal documents are signed at closing, the buyer has a right or economic interest in the property. Property laws in Texas mean that property titles aren`t always black and white. The owner cannot be the sole rightful owner of the property, according to the deed. The law allows equity title and title to belong to two separate parties. Someone may want to share legal title and fair title for a land contract where the seller finances the buyer through a payment or loan plan. In this case, the buyer has fair ownership, while the seller retains ownership until the buyer has completed payments for the property. Legal rights to a property can be separated and assigned to different people. A legal title refers to the responsibilities and obligations of the owner in the maintenance, use and control of a property. Legal title is the actual ownership of the property.

The documented name of the owner, as visible in the public record, generally describes the person with the legal title. Legal title grants true ownership of property and all that it entails – the set of rights that come with land ownership. These rights include: A person who has legal title has all the rights, responsibilities and duties of an owner, such as maintenance, use and control. Under U.S. law, proof of ownership is typically provided by title insurance companies` title reports that show ownership history (title summary and chain of ownership) as determined by registered public deeds; [1] The securities report also indicates applicable charges such as easements, liens or commitments. [2] In exchange for insurance premiums, the title insurance company conducts a title search in public records and offers assurance of a good title by indemnifying the insured in the event of a dispute over the title. [3] In the case of vehicle ownership, a simple title to the vehicle may be issued by a government agency. In countries with sophisticated private property systems, ownership documents are often used for real estate, motor vehicles and certain types of intangibles. When such documents are used, they are often part of a system of registration that can be used to verify ownership of these assets.

In some cases, a title may also serve as a permanent legal record of the condemnation of property, as in the case of a scrap or car recovery title. In the case of immovable property, the legal instrument used to transfer ownership is the deed. A famous rule is that a thief cannot pass on a good title, so title searches are routine (or highly recommended) for buying many types of expensive real estate (especially real estate). In many counties and municipalities in the United States, a standard title search (usually accompanied by title insurance) is required by law as part of the transfer of ownership. There are similarities between the two types of titles. Think of them as two halves of the same whole. Both grant certain rights to the natural or legal person whose name appears on the title deed. Both are legally binding and enforceable in court. An owner must have both the „full“ property and the use of a property. For real estate purchases that use traditional mortgages, the distinction between cheap title and legal title does not apply. Instead, the bank or lender transfers the two title deeds in question with a trust deed. The lender then retains financial and legal interests in the property until the buyer repays the loan.

However, a legal title is not the same as a title deed. In addition, the person holding legal title may also have an apparent right to possess the property. Legal and fair titles are also created in trust. In a trust, a person may have legal title, for example: directors. Another may have fair title, such as the beneficiary. [5] Paramount is the best Fairy Simple title available to the real owner. The person who owns real estate on a preferential basis has the higher (or the superior or „superior“ right) in a silent title suit. The concept is inherently relative.

Technically, the top title isn`t always the best (or highest) title, as it`s necessarily based on someone else`s title. [6] [7] In property law, title is a set of rights in immovable property in which a party may have a legal or reasonable interest.