Bad Title

AAA

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.

RELATED TERMS
  1. Zombie Titles

    A right to ownership and possession of a home that remains with ...
  2. Certificate Of Title

    A state or municipal-issued document that identifies the owner ...
  3. Defective Title

    A piece of property or asset that has a publicly-recorded encumbrance, ...
  4. Perfect Title

    A title deed for real estate that does not have any liens attached ...
  5. Construction Loan

    A short-term loan used to finance the building of a home or another ...
  6. Gentrification

    Gentrification refers to when a neighborhood or city undergoes ...
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 >>
  2. Am I entitled to any of my ex-spouse's retirement plan benefits?

    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. What is private wealth management?

    Private wealth management is an investment advisory practice that incorporates financial planning, portfolio management and ... Read Full Answer >>
  5. Which REITs pay the highest dividends?

    A real estate investment trust (REIT) is a financial security that trades like a stock on major market exchanges. However, ... Read Full Answer >>
  6. What price-to-earnings ratio is average in the real estate sector?

    The price-to-earnings (P/E) ratio is a commonly cited valuation metric that can help investors decide what stock price is ... Read Full Answer >>
Related Articles
  1. Retirement

    Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.
  2. Home & Auto

    Buying a Home? The Best Places Share This Feature

    The most lucrative areas to invest in a home are cities where job growth is robust.
  3. Investing

    Commercial Real Estate: How to Invest Like a Pro

    Investing in commercial real estate can add stability to your portfolio. Here's how to do it.
  4. Personal Finance

    Commercial Real Estate: How it Works

    The ins and outs of what commercial real estate companies do.
  5. Professionals

    Will Higher Interest Rates Crush Real Estate?

    The Federal Reserve isn’t likely to raise interest rates until at least September, but real estate investors shouldn’t ignore the pending risk.
  6. Personal Finance

    Top 10 Most Developed Cities in the U.S

    Want to know where to live, work, or play? If so, the following information might be of great value to you.
  7. Investing Basics

    Calculating Funds from Operations

    Funds from operations (FFO) measures the performance of a real estate investment trust (REIT) and other similar types of investments.
  8. Investing

    REITs 101: How They're Regulated

    Here's everything you need to know about REITs in less than five minutes.
  9. Professionals

    Real Estate Advice for Recent Retirees

    What retirees need to consider when it come to making real estate decisions.
  10. Investing

    The 10 Biggest REITs in the U.S.: Dos and Don'ts

    Five of these REITs may offer potential over the next 1-3 years. Be careful with the other half.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center