Bad Title

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DEFINITION of 'Bad Title'

A title that does not grant ownership to its holder due to unsatisfied legal or financial problems. A bad title is most often associated with real estate. Having a bad title can prevent the titleholder from selling the asset.

INVESTOPEDIA EXPLAINS'Bad Title'

A bad title may exist for a variety of reasons. In the case of real estate, the title may have a lien associated with it, may have back taxes owed or may have failed to correct a building violation. Any problems associated with the title must be resolved before the titleholder can legally transfer the title to another party. If a bad title is transferred, the receiving party does not legally own the property.

Real estate investors should make sure that a property does not have a bad title before proceeding with any purchase. Homes in foreclosure, for example, may have a number of outstanding issues. Buyers may consider purchasing owner’s title insurance to protect themselves against unforeseen claims against the title.

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RELATED FAQS
  1. I want to transfer my house title to my child, what are the costs and tax consequences ...

    The costs associated with a deed transfer will vary by state and by how the transfer is accomplished. Filing a deed yourself ... Read Full Answer >>
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    Generally, former spouses are not entitled to benefits under a qualified plan, unless provisions were made for them to receive ... Read Full Answer >>
  3. Since stockholders are entitled to a company's assets and earnings, can a stockholder ...

    When buying stock in a company, an investor becomes a part owner of that company. In addition to possessing the small degree ... Read Full Answer >>
  4. How is market value determined in the real estate market?

    Anyone who has ever tried to purchase or sell a home has probably heard a lot about the property's fair market value, or ... Read Full Answer >>
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    While regular funds from operations measures the cash flow generated by the operations of a real estate investment trust ... Read Full Answer >>
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    Typical leasehold improvements include partitioning a large, open space into smaller, more structured areas such as dressing ... Read Full Answer >>

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