What is a certificate of title?

A certificate of title serves as a crucial document in real estate transactions, providing a statement regarding the status of a property's title. It confirms whether the title is clear, which means that the owner has legal ownership free from any encumbrances such as liens or claims by creditors. This document typically includes information about the current owner, any recorded interests in the property, and any legal issues that may affect the ownership.

Ensuring that a title is clear is a key step for buyers since it informs them of their ownership rights and guarantees that they will have full claim to the property without unexpected disputes or claims. In real estate, this document is essential for establishing a reliable ownership record and protecting the interests of both buyers and lenders.

Other options do not accurately represent what a certificate of title is. Affirming a property's insurance status, summarizing property taxes, or detailing a maintenance history fall outside the scope of what a certificate of title provides.