Title (Property)

Legal ownership of property. Having 'title' to property means you are the legal owner with the right to use, sell, or transfer it.

Title refers to legal ownership of property. When you have “title” to a house or piece of land, you are the legal owner with the right to live in it, rent it out, sell it, or transfer it to someone else. Title is different from possession – you can have title to property you are not currently occupying, and you can occupy property you do not have title to (such as a rental).

When buying real estate, a “title search” is performed to make sure the seller actually owns the property and that there are no liens, unpaid taxes, or other claims against it. “Title insurance” protects the buyer in case a title defect is discovered after the purchase.

Minnesota has two systems for recording property ownership: the traditional abstract system and the Torrens system (Minn. Stat. ch. 508), which provides a government-guaranteed certificate of title.

Why it matters: Clear title is essential when buying property. If there are problems with the title – such as an old lien, a boundary dispute, or a missing heir who claims ownership – it can threaten your ownership rights. Always get a title search and consider title insurance when purchasing real estate.

Example: A buyer purchases a home and gets title insurance. Two years later, a contractor who did work for the previous owner files a mechanic’s lien claiming $8,000 is owed. The title insurance company pays to resolve the claim, protecting the buyer from the previous owner’s debt.