Title is a legal term for an owner’s interest in a piece of property. It may also refer to a formal document that serves as evidence of ownership or the history of ownership and documentation that affects the title during the period of ownership. Lenders perform title searches on a property for purchase transactions and refinances to verify the actual owner of the property. The title search will also determine whether there are any existing mortgages or liens against the property. Title defects or a clouded title refers to a situation in which there are problems identifying the rightful owners to the property or there are claims and liens on the property that have been resolved. Title insurance provides insurance coverage against losses resulting from unidentified liens or title defects. The title insurance may be in place to protect the property, the lender or both.
Provision or clause in a mortgage that allows the lender to demand payment of the entire principal balance and unpaid interest is due if certain conditions have occurred. Conditions will generally a default on the monthly payment, failure to pay real estate taxes, transfer of ownership in the property and others.