Title

What It Means

Title is the legal concept that represents ownership of real property. Holding title means having a recognized, enforceable right to possess, use, and transfer a property. Title is distinct from the physical Deed — the deed is the document that transfers title, while title itself is the underlying legal right.

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In co-ownership, title is held by multiple parties simultaneously. How title is held — the Vesting structure — determines each co-owner's legal rights, including their ownership share, survivorship status, and ability to transfer their interest.

How Title Works in Co-ownership

When co-buyers purchase a property, all parties who will hold ownership interest are recorded on the deed that conveys title. The vesting designation on the deed specifies the legal relationship between co-owners: Tenants in Common, Joint Tenancy with Right of Survivorship, or through an entity such as an LLC.

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Title companies conduct a title search before closing to verify that the seller has clear, transferable title and to identify any liens, encumbrances, or claims. Title insurance protects the new owners against defects that the search may not have uncovered.

Why It Matters for Co-owners

Title errors or omissions can be especially consequential in co-ownership. If a co-owner is inadvertently left off the deed, they may have no legal claim to the property. If the vesting structure is recorded incorrectly, it can affect survivorship rights, tax treatment, and the enforceability of exit provisions in the Co-ownership Agreement.

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Co-owners should verify that the deed accurately reflects all parties, ownership shares, and the intended vesting structure before closing.

Key Points

• Title is the legal right to ownership of real property
• Distinct from the deed, which is the document that transfers title
• In co-ownership, title is held by multiple parties under a specified vesting structure
• Title search and title insurance protect against ownership defects
• All co-owners must be accurately recorded on the deed with the correct vesting designation