In a real estate transaction, what is referred to as the documentation proving ownership?

The term "evidence of title" refers to the documentation that establishes and proves that an individual or entity has ownership rights over a property. This documentation can include various forms such as a title deed, title insurance policy, or a title search report, all serving to confirm that the title is valid and free of claims that could dispute ownership.

In real estate transactions, the evidence of title is crucial because it protects buyers and sellers by providing clear and conclusive proof of ownership. A well-documented title supports the property’s transfer and ensures that all legal requirements have been met.

While the property deed is also a key document in transferring ownership, it can be considered a component of the overall evidence of title rather than the broad term itself that encompasses all forms of ownership documentation. Escrow refers to the process where a neutral third party holds funds or documents until specific conditions are met, and a lease agreement is a contract that allows a tenant to use property owned by a landlord for a specified time without transferring ownership.