Certificate Of Title

AAA

DEFINITION of 'Certificate Of Title'

A state or municipal-issued document that identifies the owner or owners of personal or real property. A certificate of title provides documentary evidence of the right of ownership. When issued for real property (such as land or a house) by a title insurance company, the certificate of title is a statement of opinion on the status of the title, based on a thorough examination of specified public records.

INVESTOPEDIA EXPLAINS 'Certificate Of Title'

The certificate of title lists any encumbrances on the property, such as liens or easements, but does not guarantee good title. Title companies provide certificates of title to lenders that require these documents prior to approving mortgage loans.


Certificates of title are also issued for vehicles, including automobiles, buses, motorcycles, motor homes, trailers and trucks, aircraft and watercraft. These are issued by a designated state agency to identify the owner of the vehicle, aircraft or water vessel. Any liens or outstanding loans will be identified on the certificate of title. Often, a lender (such as for an automobile loan) will hold the title until the obligation has been satisfied, at which point the lien is released and the certificate of title will be sent to the owner.

RELATED TERMS
  1. Encumbrance

    A claim against a property by another party. Encumbrance usually ...
  2. Deed

    A legal document that grants the bearer a right or privilege, ...
  3. Title

    The right to the ownership and possession of any item that may ...
  4. Title Insurance

    Insurance that covers the loss of an interest in a property due ...
  5. Register Of Deeds

    A record of real estate deeds or other land titles that is maintained ...
  6. Commercial Real Estate Loan

    definition of a commercial real estate loan
Related Articles
  1. State Laws Dictate Division Of Joint ...
    Retirement

    State Laws Dictate Division Of Joint ...

  2. Holding Titles On Real Property
    Retirement

    Holding Titles On Real Property

  3. Top Tips For First-Time Home Buyers
    Home & Auto

    Top Tips For First-Time Home Buyers

  4. Tax Deductions You May Be Missing
    Taxes

    Tax Deductions You May Be Missing

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center