What does the term “title” refer to in real estate?

The term "title" in real estate is a legal concept that represents a person's right to own and use a specific piece of property. It is not merely about holding a physical document such as a deed; rather, it encompasses the entire set of rights associated with ownership. This includes the right to sell, lease, mortgage, or develop the property.

Understanding that title refers to ownership and the associated legal rights helps clarify why it is essential in real estate transactions. The concept of "the owner's bundle of legal rights" is key in real estate, as it emphasizes that ownership includes not just the right to possess the property but also the rights to control, enjoy, exclude others, and transfer the property. This distinction is fundamental in real estate practices and law, making it clear that title signifies much more than just a physical document.