TAKING TITLE GARRETT SUTTON
itle to real estate sounds grand. As you think of titles let your mind wander back again to medieval
England when titles such as Baron and Duke meant you were part of the nobility and peerage
system. And not coincidentally, if you had such a title you also owned land.
As our legal systems evolved,
real estate title–the means by
which
you
owned
valuable
property rights –remained ever
so
important.
Because
title
conveyed power (and with power
came corruption and fraud), a
system to accurately record the
chain of title developed. Over
time you had to defend your title
with the proper paperwork. The
‘checking system’ that evolved
means that there are two steps
for the transfer of title.
The first step is the granting of a deed whereby the grantor transfers the property to the grantee. An
investigation of the sequence of deeds to establish an accurate chain of title is then performed. If the grantor
actually has clear title according to the public records, a policy of title insurance may be issued and the
property transferred. (Please note that property can be transferred without title insurance but that most banks
won’t take the risk in making a loan without it.)