We use the word "title" to refer to many concepts: current ownership of property, the past history of ownership to one's property, the right to claim ownership to one's property... and the list goes on.
In reality, experts have been trying to define property rights, ownership, and title for years. But there is a general consensus: ownership represents the bundle of rights one acquires when purchasing property. Title constitutes a person's right to assert those rights.
It's a subtle distinction, but an important one. It is only a person's ability to dispose of property that can convert ownership to money. This is why title, or what we call "marketable title," is so important. If a property owner does not have title that a willing purchaser will accept, ownership of property is deprived of its full financial potential.
Why is it so difficult for experts to define property rights? Interestingly, a society's political philosophy dictates what property rights a titleholder can assert. The United States, for instance, has reserved several property rights to federal, state and local governments. Taxes, zoning and subdivision regulations, and eminent domain all limit a person's bundle of property rights. That is, these regulations restrict what a property owner can do with their property.
You may not be able to (or may not want to) challenge such governmental restrictions on property ownership as you prepare to purchase or sell property, but you will want to make sure title to your current or prospective property is marketable. Call Baer Law Partners today at (518) 577-2290 for an experienced attorney to review your title and guide you through the closing process.
