In
property law
Property law is the area of law that governs the various forms of ownership in real property (land) and personal property. Property refers to legally protected claims to resources, such as land and personal property, including intellectual pro ...
, title is an intangible construct representing a
bundle of rights
The bundle of rights is a metaphor to explain the complexities of property ownership. Law school professors of introductory property law courses frequently use this conceptualization to describe "full" property ownership as a partition of vari ...
in (to) a piece of
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
in which a party may own either a legal interest or
equitable interest
An equitable interest is an "interest held by virtue of an equitable title (a title that indicates a beneficial interest in property and that gives the holder the right to acquire formal legal title) or claimed on equitable grounds, such as the int ...
. The rights in the bundle may be separated and held by different parties. It may also refer to a formal
document
A document is a written, drawn, presented, or memorialized representation of thought, often the manifestation of non-fictional, as well as fictional, content. The word originates from the Latin ''Documentum'', which denotes a "teaching" or ...
, such as a
deed
In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring ...
, that serves as evidence of
ownership
Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...
.
Conveyance of the document (transfer of title to the property) may be required in order to transfer ownership in the property to another person. Title is distinct from
possession
Possession may refer to:
Law
* Dependent territory, an area of land over which another country exercises sovereignty, but which does not have the full right of participation in that country's governance
* Drug possession, a crime
* Ownership
* ...
, a
right
Rights are law, legal, social, or ethics, ethical principles of Liberty, freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people according to some legal system, social convent ...
that often accompanies ownership but is not necessarily sufficient to prove it (for example
squatting
Squatting is the action of occupying an abandoned or unoccupied area of land or a building, usually residential, that the squatter does not own, rent or otherwise have lawful permission to use. The United Nations estimated in 2003 that there ...
). In many cases, possession and title may each be transferred independently of the other. For real property,
land registration
Land registration is any of various systems by which matters concerning ownership, possession, or other rights in land are formally recorded (usually with a government agency or department) to provide evidence of title, facilitate transactions, a ...
and
recording
A record, recording or records may refer to:
An item or collection of data Computing
* Record (computer science), a data structure
** Record, or row (database), a set of fields in a database related to one entity
** Boot sector or boot record, ...
provide public notice of ownership information.
In United States law, evidence of title is typically established through title reports written up by
title insurance
Title insurance is a form of indemnity insurance predominantly found in the United States and Canada which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Unlike ...
companies, which show the history of title (
property abstract
A property abstract is a summary of the legal documents that chronicle transactions associated with a particular parcel of land. Generally included are references to deeds, mortgages, wills, probate records, court litigations, and tax sales—basic ...
and
chain of title
A chain of title is the sequence of historical transfers of title to a property. It is a valuable tool to identify and document past owners of a property and serves as a property's historical ownership timeline. The "chain" runs from the present o ...
) as determined by the recorded public record
deed
In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring ...
s; the title report will also show applicable
encumbrance
An encumbrance is a third party's right to, interest in, or legal liability on property that does not prohibit the property's owner from transferring title (but may diminish its value). Encumbrances can be classified in several ways. They may be f ...
s such as
easement
An easement is a nonpossessory right to use and/or enter onto the real property of another without possessing it. It is "best typified in the right of way which one landowner, A, may enjoy over the land of another, B". An easement is a propert ...
s,
lien
A lien ( or ) is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the ''lienee'' and the pers ...
s, or
covenants. In exchange for
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
premiums, the title insurance company conducts a
title search
In real estate business and law, a title search or property title search is the process of examining public records and retrieving documents on the history of a piece of real property to determine and confirm property's legal ownership, and find o ...
through public records and provides assurance of good title, reimbursing the insured if a dispute over the title arises. In the case of vehicle ownership, a simple
vehicle title
In the United States, the certificate of title for a vehicle (also known as a car title, automobile title, or pink slip) is a legal form, establishing a person or business as the legal owner of a vehicle. Vehicle titles in the U.S. are commonly is ...
document may be issued by a governmental agency.
The main rights in the title bundle are usually:
* Exclusive
possession
Possession may refer to:
Law
* Dependent territory, an area of land over which another country exercises sovereignty, but which does not have the full right of participation in that country's governance
* Drug possession, a crime
* Ownership
* ...
* Exclusive
use
Use may refer to:
* Use (law), an obligation on a person to whom property has been conveyed
* Use (liturgy), a special form of Roman Catholic ritual adopted for use in a particular diocese
* Use–mention distinction, the distinction between using ...
and
enclosure
Enclosure or Inclosure is a term, used in English landownership, that refers to the appropriation of "waste" or " common land" enclosing it and by doing so depriving commoners of their rights of access and privilege. Agreements to enclose land ...
*
Acquisition
*
Conveyance, including by
bequest
A bequest is property given by will. Historically, the term ''bequest'' was used for personal property given by will and ''deviser'' for real property. Today, the two words are used interchangeably.
The word ''bequeath'' is a verb form for the act ...
* Access
easement
An easement is a nonpossessory right to use and/or enter onto the real property of another without possessing it. It is "best typified in the right of way which one landowner, A, may enjoy over the land of another, B". An easement is a propert ...
*
Hypothecation
Hypothec (; german: Hypothek, french: hypothèque, pl, hipoteka, from Lat. ''hypotheca'', from Gk. : hypothēkē), sometimes tacit hypothec, is a term used in civil law systems (e.g. law of entire Continental Europe except Gibraltar
)
, ...
*
Partition
Partition may refer to:
Computing Hardware
* Disk partitioning, the division of a hard disk drive
* Memory partition, a subdivision of a computer's memory, usually for use by a single job
Software
* Partition (database), the division of a ...
The rights in
real property
In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, is land which is the property of some person and all structures (also called improvements or fixtures) integrated with or affixe ...
may be separated further, examples including:
*
Water rights
Water right in water law refers to the right of a user to use water from a water source, e.g., a river, stream, pond or source of groundwater. In areas with plentiful water and few users, such systems are generally not complicated or contentious ...
, including
riparian rights
Riparian water rights (or simply riparian rights) is a system for allocating water among those who possess land along its path. It has its origins in English common law. Riparian water rights exist in many jurisdictions with a common law herit ...
and
runoff right
Drainage law is a specific area of water law related to drainage of surface water on real property. It is particularly important in areas where freshwater is scarce, flooding is common, or water is in high demand for agricultural or commercial pur ...
s
* In some U.S. states, water rights are completely separate from land—see
prior appropriation water rights
Prior appropriation: In water rights, the legal doctrine of prior appropriation holds that the first person to take a quantity of water from a water source for "beneficial use" (agricultural, industrial or household) has the right to continue to ...
*
Mineral rights
Mineral rights are property rights to exploit an area for the minerals it harbors. Mineral rights can be separate from property ownership (see Split estate). Mineral rights can refer to sedentary minerals that do not move below the Earth's surfac ...
*
Easement
An easement is a nonpossessory right to use and/or enter onto the real property of another without possessing it. It is "best typified in the right of way which one landowner, A, may enjoy over the land of another, B". An easement is a propert ...
to neighboring property, for utility lines, etc.
*
Tenancy
A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a l ...
or
tenure
Tenure is a category of academic appointment existing in some countries. A tenured post is an indefinite academic appointment that can be terminated only for cause or under extraordinary circumstances, such as financial exigency or program disco ...
in improvements
*
Timber right
Lumber is wood that has been processed into dimensional lumber, including Beam (structure), beams and plank (wood), planks or boards, a stage in the process of wood production. Lumber is mainly used for construction framing, as well as fini ...
s
*
Farming right
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
s
*
Grazing rights
Grazing rights is the right of a user to allow their livestock to feed (graze) in a given area.
United States
Grazing rights have never been codified in United States law, because such common-law rights derive from the English concept of the ...
*
Hunting rights
*
Air rights
Air rights are the property interest in the "space" above the earth's surface. Generally speaking, owning, or renting, land or a building includes the right to use and build in the space above the land without interference by others.
This legal ...
* Development rights to erect improvements under various restrictions
* Appearance rights, often subjected to local zoning ordinances and deed restrictions
''
Possession
Possession may refer to:
Law
* Dependent territory, an area of land over which another country exercises sovereignty, but which does not have the full right of participation in that country's governance
* Drug possession, a crime
* Ownership
* ...
'' is the actual holding of a thing, whether or not one has any right to do so. The ''
right of possession
The right of possession is the right of a person to possession of property. It is a right of a person who currently holds property in hand or under their control to retain such possession, or alternatively for another person who claims superior ...
'' is the legitimacy of possession (with or without actual possession), evidence for which is such that the law will uphold it unless a better claim is proven. The ''
right of property
Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...
'' is that right which, if all relevant facts are known (and allowed), defeats all other claims. Each of these may be in a different person.
For example, suppose A steals from B something that B had previously bought in good faith from C and that C had earlier stolen from D and that had been an heirloom of D's family for generations but had originally been stolen centuries earlier (though this fact is now forgotten by all) from E. Here A has the possession, B has an ''apparent'' right of possession (as evidenced by the purchase), D has the ''absolute'' right of possession (being the best claim that can be proven), and the heirs of E, if they knew it, would have the right of property, which they however could not prove. A good title consists of the combination of these three (possession, right of possession, and right of property) in the same person(s).
The extinguishing of ancient, forgotten, or unasserted claims, such as E's in the example above, was the original purpose of
statutes of limitations. Otherwise, title to property would always be uncertain.
Equitable versus legal title
At common law
equitable title
In property law, title is an intangible construct representing a bundle of rights in (to) a piece of property in which a party may own either a legal interest or equitable interest. The rights in the bundle may be separated and held by different ...
is the right to obtain full ownership of
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
, where another maintains legal title to the property.
When a contract for the sale of land is executed, equitable
nterest/titlepasses to the buyer. When the conditions on the sale contract have been met, legal title passes to the buyer in what is known as closing. Some companies, such as Econohomes/Visio Financial, use this term to describe a "trailing deed". This is not the case. Properties that are sold on the basis of equitable title have a legal chain of title intact, and a recorded transfer with the local municipality.
Legal title is actual ownership of the property as when the property has been bought, the seller paid in full and a deed or title is properly recorded. Equitable title separates from legal title upon the death of the legal title holder (owner). For example: When a person having legal title to property dies, heirs at law or beneficiaries per the last will, automatically receive an equitable interest in the property. When an executor or administrator qualifies, that person acquires the legal title, subject to divestment when the estate has been administered so as to allow for the lawful passing of the legal title to those having an equitable interest. The resulting merger of the legal and equitable gives rise to the "perfect title," often referred to as marketable title.
Legal and equitable title also arises in
trust
Trust often refers to:
* Trust (social science), confidence in or dependence on a person or quality
It may also refer to:
Business and law
* Trust law, a body of law under which one person holds property for the benefit of another
* Trust (bus ...
. In a trust, one person may own the legal title, such as the
trustees
Trustee (or the holding of a trusteeship) is a legal term which, in its broadest sense, is a synonym for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility to t ...
. Another person may own the equitable title such as the
beneficiary
A beneficiary (also, in trust law, '' cestui que use'') in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person ...
.
Applications
In countries with a sophisticated
private property
Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property and personal property, which is owned by a state entity, and from collective or ...
system, documents of title are commonly used for
real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...
,
motor vehicle
A motor vehicle, also known as motorized vehicle or automotive vehicle, is a self-propelled land vehicle, commonly wheeled, that does not operate on Track (rail transport), rails (such as trains or trams) and is used for the transportation of pe ...
s, and some types of intangible property. When such documents are used, they are often part of a registration system whereby ownership of such property can be verified. In some cases, a title can also serve as a permanent legal record of condemnation of property, such as in the case of an automobile
junk or
salvage title
In North America, a salvage title is a form of vehicle title branding, which notes that the vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it. The criteria for determining when a salvage title i ...
. In the case of
real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...
, the legal instrument used to transfer title from one person or entity to another is via the
deed
In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring ...
. A famous rule is that a thief cannot convey good title, so
title search
In real estate business and law, a title search or property title search is the process of examining public records and retrieving documents on the history of a piece of real property to determine and confirm property's legal ownership, and find o ...
es are routine (or highly recommended) for purchases of many types of expensive property (especially real estate). In several counties and municipalities in the US a standard title search (generally accompanied by
title insurance
Title insurance is a form of indemnity insurance predominantly found in the United States and Canada which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Unlike ...
) is required under the law as a part of ownership transfer.
Paramount title is the best title in
Fee simple
In English law, a fee simple or fee simple absolute is an estate in land, a form of freehold ownership. A "fee" is a vested, inheritable, present possessory interest in land. A "fee simple" is real property held without limit of time (i.e., perm ...
available for the true owner. The person who is owner of
real property
In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, is land which is the property of some person and all structures (also called improvements or fixtures) integrated with or affixe ...
with paramount title has the higher (or better, or "superior") right in an action to
Quiet title
Quiet may refer to:
* Silence, a relative or total lack of sound
In music
* The Quiett (born 1985), South Korean rapper
* ''Quiet'' (album), a 1996 John Scofield album
* "Quiet", a song by Lights, from her album '' The Listening'' (2009)
* "Qui ...
. This concept is inherently a relative one. Paramount title is not always the best (or highest) title, since it is necessarily based on some other person's title.
A
quiet title
Quiet may refer to:
* Silence, a relative or total lack of sound
In music
* The Quiett (born 1985), South Korean rapper
* ''Quiet'' (album), a 1996 John Scofield album
* "Quiet", a song by Lights, from her album '' The Listening'' (2009)
* "Qui ...
action is a lawsuit to resolve with any
cloud on title
In United States property law, a cloud on title or title defect is any irregularity in the chain of title of property (usually real property) that would give a reasonable person pause before accepting a conveyance of title. According to Investoped ...
, such as competing claims or rights to real property, for example,
missing heirs
A missing heir is a person related to a ''decedent'' (dead person), or testator of a will, but whose residence, domicile, Post office, or other address is not known. A missing heir may be an orphan or other person under a disability, who may nee ...
,
tenants
A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a l ...
,
reverter
A reversion in property law is a future interest that is retained by the grantor after the conveyance of an estate of a lesser quantum that he has (such as the owner of a fee simple granting a life estate or a leasehold estate). Once the lesser e ...
s,
remainders and
lien holders all competing to get ownership to the house or land. Technical problems with title include misspellings, outstanding debt, unrecorded transactions, and any irregularity that might indicate a break in the chain of ownership. Each of the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
have different procedures for a ''quiet title action''.
However, most
personal property
property is property that is movable. In common law systems, personal property may also be called chattels or personalty. In civil law systems, personal property is often called movable property or movables—any property that can be moved fr ...
items do not have a formal document of title. For such items, possession is the simplest indication of title, unless the circumstances give rise to suspicion about the possessor's ownership of the item. Proof of legal acquisition, such as a bill of sale or purchase receipt, is contributory. The transfer of possession to a
good faith
In human interactions, good faith ( la, bona fides) is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. Some Latin phrases have lost their literal meaning over centuries, but that is not the case ...
purchaser will normally convey title if no document is required.
Political issues
California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
prevented aliens (mainly
Asians
Asian people (or Asians, sometimes referred to as Asiatic people)United States National Library of Medicine. Medical Subject Headings. 2004. November 17, 200Nlm.nih.gov: ''Asian Continental Ancestry Group'' is also used for categorical purpos ...
) from holding title to
land
Land, also known as dry land, ground, or earth, is the solid terrestrial surface of the planet Earth that is not submerged by the ocean or other bodies of water. It makes up 29% of Earth's surface and includes the continents and various islan ...
until the law was declared
unconstitutional
Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...
in 1952. Currently there are no restrictions on foreign ownership of land in the United States, although sales of real estate by non-resident aliens are subject to certain special taxation rules.
Aboriginal title
Prior to the establishment of the United States, title to Indian lands in lands controlled by Britain in North America was governed by The Royal Proclamation of October 7, 1763. This proclamation by
King George III
George III (George William Frederick; 4 June 173829 January 1820) was King of Great Britain and of Ireland from 25 October 1760 until the union of the two kingdoms on 1 January 1801, after which he was King of the United Kingdom of Great Br ...
reserved title in land to the Indians, subject to alienation only by the Crown. This continued to be the law of Canada following the American Revolution.
In the United States Indian title is the subservient title held by
Native Americans in the United States
Native Americans, also known as American Indians, First Americans, Indigenous Americans, and other terms, are the Indigenous peoples of the mainland United States ( Indigenous peoples of Hawaii, Alaska and territories of the United State ...
to the land they customarily claimed and occupied. It was first recognized in .
It very early became accepted doctrine in this Court that although fee title to lands occupied by Indians when the colonists arrived became vested in the sovereign – first the discovering European nation and later the original states and the United States – a right of occupancy in the Indian tribes was nevertheless recognized. That right, sometimes called Indian Title and good against all but the sovereign, could be terminated only by sovereign act. Once the United States was organized and the Constitution adopted, these tribal rights to Indian lands became the exclusive province of the federal law. Indian title, recognized to be only a right of occupancy, was extinguishable only by the United States.
''Oneida Indian Nation v. County of Oneida'' , 414 U.S. 661, 667 (1974).
The usual method of extinguishing Indian title was by
treaty
A treaty is a formal, legally binding written agreement between actors in international law. It is usually made by and between sovereign states, but can include international organizations
An international organization or international o ...
.
"Indian Lands"
Douglas Roger Nash
See also
* Fee
A fee is the price one pays as remuneration for rights or services. Fees usually allow for overhead, wages, costs, and markup. Traditionally, professionals in the United Kingdom (and previously the Republic of Ireland) receive a fee in contra ...
* Feu
* Land tenure
In common law systems, land tenure, from the French verb "tenir" means "to hold", is the legal regime in which land owned by an individual is possessed by someone else who is said to "hold" the land, based on an agreement between both individual ...
* Phase I Environmental Site Assessment
* Manufacturer statement of origin
References
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Property law
Legal terminology