What Title Means in Real Estate —

A Simple Guide for Buyers & Sellers

Title is one of the most misunderstood parts of a real estate transaction, yet it’s also one of the most important. On this page, we break down what title is, why it matters, and how it protects your ownership so you can move forward with confidence.

What Title Means

Title is legal ownership of a property. It shows who has the right to use, sell, or transfer the home.

1. Title Search

Regardless of the details of your purchase—whether you’re paying cash or obtaining a mortgage—buyers are required to obtain a title search on the property.

Once the title company receives the title search results, they review and compile the findings into a preliminary title commitment, which is shared with all transaction parties.

What is a preliminary title commitment? The preliminary title commitment shows the current and past ownership of the property, any mortgages, liens, or judgments (against the buyer or seller), taxes, utilities, references to estates, deed restrictions, and conditions.

The report itself is lengthy, but your real estate agent will be able to review it with you and let you know if any items are outside of the norm and what action is required by you.

Rest assured, the title will be cleared before closing, and the property will transfer to you free and clear of any judgments, liens, and mortgages. We’ll work with the title company and listing agent to clear any “clouds” that appear on titles, such as judgments or liens, and the seller’s conveyancer will work to provide payoffs for routine items like utilities and mortgages. The seller’s conveyancer will also procure the township’s “U&O” (Use and Occupancy Certificate) as part of their process, which you will receive a copy of prior to closing.

What the Seller Is Responsible For

The seller is responsible for providing payoffs for routine items like utilities and mortgages, as well as the Use of Occupancy Certificate.

What the Buyer is Responsible For

As the buyer, you are responsible for clearing any judgments that arise against you personally before you can take the title on your new property.

Deed restrictions and conditions will remain with the property even after closing. The most common restrictions we see are related to shared party walls, driveway easements, and utility access, however, more restrictive examples do exist, so be sure your agent has thoroughly reviewed the report with you.

The Commitment Date

It is not uncommon to have an earlier commitment date than the date on the Agreement of Sale. The commitment date actually has nothing to do with your transaction; it’s simply the date the county records were last updated. In order to be considered reliable, title records need to be updated every 6 months. So if too much time elapses between when you receive your preliminary title commitment and closing, the title company will order and provide a “bring down” and issue an updated title commitment showing any changes before closing.

2. Title INSURANCE

Not to be confused with the title search, title insurance provides coverage for title defects not uncovered in the preliminary title search. A lender will require you to obtain title insurance for the entire amount of the mortgage you receive; however, it is not required for the portion of your purchase covered by your down payment, or for cash purchase. We strongly, strongly recommend you take advantage of it and elect to purchase an “owner’s policy.”

Unlike other insurance premiums, title insurance is a one-time cost, paid at closing.

The Difference Between A Standard or Enhanced Title Insurance Policy

A standard policy protects you against common title issues that may have existed before you purchased the home.

This includes:

. Someone else claiming ownership interest in the property

. Forgery or fraud, such as a falsified signature on a prior deed

. Errors in public records, including incorrectly recorded documents

. Unknown liens, like unpaid taxes or contractor bills

. Restrictive covenants, such as limitations placed on the property by a previous owner

. Unmarketable title, meaning ownership issues that could make the property difficult to sell later

In simple terms: it protects you from past problems you couldn’t have discovered on your own.

An enhanced policy offers broader protection and covers more modern risks — including issues that may arise after you purchase the home.

This often includes:

. Coverage for appreciation — protecting your increased property value, not just the original purchase price

. Encroachments such as a neighbor’s fence or structure crossing property lines

. Easement disputes, where others have rights to use part of your property

. Zoning violations, including improper use of the property

. Subdivision violations

. Building permit issues, such as prior renovations completed without proper approvals

In short: it offers deeper protection for both past issues and certain future risks.

After your closing is complete, your realtor will provide you with a “marked up” title from closing, which shows what the title company is agreeing to underwrite. You’ll later receive the actual owner’s policy directly from the title company, reflecting this coverage. Be sure to keep both on record as they may be needed in the future, especially when you are ready to sell the property.

It may seem like a lengthy process, but rest assured, we’ll walk you through every step.

Ready to Sell or Buy Without Surprise Title Issues?

We walk every client through title challenges step by step — so you never feel confused at closing.