A Perfect Title is almost exactly what you think it is. And it is what we all hope for when buying or selling a house. In technical terms, it refers to ownership of a property through a deed free of any liens or defects. By owning a home with a perfect title, creditors cannot challenge your home ownership. And it is in optimal condition for a smooth sale or transfer should you want to get rid of it.
It is important to note that there is a difference between a title and a deed. A title is not a physical thing, it is just a reference to the rights of ownership to an asset. A deed is a physical document for a piece of property. The deed also lists any outstanding debts and other legal details associated with the property. These go hand-in-hand because a title company will research the title history of a property when preparing a deed.
While it is the ideal situation, having a perfect title is much easier said than done. There are some common obstacles that aren’t even problematic, such as easements or other third-party claims to some part of the property. Another issue that commonly arises is that the legality of a deed can be challenged, which can happen if a familial relationship was incorrectly listed or unknown heirs begin to come forward.
Because of these minor and easily fixable problems that still affect the status of a title, a perfect title in the real estate world is something of a unicorn. It is a great opportunity for an easy commission on a sale that will be smooth.
