What is house title, and why is it important?
A home’s title states who legally owns it and who has claim to the property.
A house title represents all of the legal rights surrounding the ownership and use of a residential property. A house title isn’t a document; it’s a concept used to establish a property owner’s “bundle of rights.”
This bundle of rights encompasses all of the rights that come with being a property owner. It means you have the right to: possess the property (Right of Possession); use (Right of Control) and enjoy (Right Of Enjoyment) it however you wish; sell, rent, or transfer ownership (Right Of Disposition); limit who can enter the property (Right of Exclusion).
Essentially, a house title allows you to legally state that “THIS IS MY TERRITORY.” You can live in the property, use it and enjoy it however you wish within the confines of the law and your mortgage, sell it to whomever you wish and say who can come in and out (like…you can tell your psychotic aunt that she’s not allowed over if you want).
Title vs Deed
Is title the same as a deed? Great question, the short answer is, no. House title is not a document, rather, a concept outlining your bundle of rights to the property. The deed is the document that officially transfers ownership of the property from the previous owner to the new owner. Think of it like a receipt.
