A certificate of title is a document issued by a governmental authority or registry that certifies the ownership of property, typically for vehicles or real estate. It details the property's legal owner and can include information about any encumbrances, liens, or easements associated with the property.
For vehicles, the certificate of title proves ownership and includes details such as the vehicle's make, model, year, and identification number, along with the owner's name and any liens against the vehicle.
In real estate, a certificate of title provides a summary of the property's legal status, based on a thorough examination of public records. This document is crucial in transactions involving the sale or transfer of property, ensuring that the title is clear and transferable.
Property Law: Involves the certification of real estate ownership and the disclosure of any claims or liens on the property.
Motor Vehicle Law: Pertains to the documentation of vehicle ownership and any financial interests recorded against the vehicle.
A misconception is that a certificate of title alone guarantees clear ownership free of any encumbrances.
While the certificate provides evidence of ownership, it may also list liens or other claims on the property, which must be resolved to ensure a clear title. The document reflects the property's status at the time of issuance and may not account for subsequent changes or claims.
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