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.

BREAKING DOWN '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.

RELATED TERMS
  1. Quiet Title

    A lawsuit filed to establish ownership of real estate when ownership ...
  2. Perfect Title

    A title deed for real estate that does not have any liens attached ...
  3. Cloud On Title

    Any document, claim, unreleased lien or encumbrance that might ...
  4. Absolute Title

    Title to a property that is free of any encumbrances or deficiencies. ...
  5. Quiet Title Action

    A circuit court action (lawsuit) intended to establish or settle ...
  6. Title Search

    An examination of public records to determine and confirm a property's ...
Related Articles
  1. Personal Finance

    Getting A Car Title Loan

    This loan-of-last-resort uses your car as collateral and features very high interest rates and fees. Be extremely wary of even considering one.
  2. Personal Finance

    States That Allow Car Title Loans

    Only some states permit car title loans – and those that do may have restrictions. Check this list to see what to expect.
  3. Personal Finance

    Car Title Loan Limits

    You can usually get 25% to 50% of a car's value - but could pay more in interest than you borrowed if the loan rolls over a lot before it's paid off.
  4. Managing Wealth

    Tips For Transferring A House Title

    Transferring a house title can be complicated at times. Here are some guidelines to help you get through the process.
  5. Personal Finance

    Are Car Title Loans Ever a Good Idea?

    Most people knowledgeable about finance consider title loans predatory. What would constitute a good-quality short-term loan? Here's one idea.
  6. Insurance

    Encumbrances And Nonpossessory Interests In Real Property

    Learn about nonpossessory interests and the various forms of encumbrances.
  7. Trading

    Car Title Loans: Good Option For Fast Cash?

    These loans provide fast cash, but they could leave you deeper in debt - and without a car.
  8. Managing Wealth

    Importance of Title in Art Transactions

    A work of art can be a valuable investment, but it’s important to verify that it isn’t stolen property when you purchase it.
  9. Managing Wealth

    How You Can Protect Assets With Umbrella Insurance

    Here's why protecting your assets from litigation via umbrella liability insurance is a good idea.
  10. Financial Advisor

    6 Easy Tips for Improving Your Blog's Headlines

    Advisors write great content for their websites or blogs...but saddle them with dull headlines. Here's how to make sure your audience clicks on your post.
RELATED FAQS
  1. What do real estate attorneys do?

    Understand the role of a real estate attorney to help you decide if you would benefit from the expertise of this type of ... Read Answer >>
  2. What real estate documents need to be recorded?

    Learn how recording documents on real estate transactions, such as deeds, mortgages, easements and taxes, help ensure proper ... Read Answer >>
Hot Definitions
  1. Operating Ratio

    A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  4. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
Trading Center