certificate of title
A certificate of title is an official document issued by the state, usually a registrar or other public officer , that notes the owner(s) of personal or real property. It serves the purpose of proving the right of ownership , and it typically applies to real estate , but it can also apply to a business, boat, or vehicle, among other things. A certificate of title is usually transferred from seller to buyer in real estate and vehicle transactions. However, the certificate itself does not serve as a guarantee of a free and clear title on the property, and a title search must be conducted before settling large transactions.
[Last reviewed in July of 2022 by the Wex Definitions Team ]
Wex