What is described as a Certificate of Title?

A Certificate of Title is fundamentally understood as a written opinion about the status of property ownership given by a professional, typically a title company or an attorney. This document reviews public records and other relevant data to verify who holds legal title to a property and to check for any encumbrances or claims against that title.

This assessment is critical in real estate transactions, as it provides assurance to potential buyers regarding the legitimacy of the property title. It specifies whether the title is clear, free from liens or disputes, and can legally be transferred. A Certificate of Title does not signify a transfer of ownership itself; rather, it affirms the existing ownership status.

In contrast, the other choices involve different aspects of real estate. Confirming the transfer of ownership pertains more to the deed itself, while property value assessment relates to appraisals. The necessity for legal documents in property sales encompasses various forms, including deeds and contracts, but does not specifically define the role of a Certificate of Title.