What does the term “title” refer to in real estate?

In real estate, the term "title" specifically refers to the legal right to ownership of property. It encompasses the bundle of rights that the owner has over the property, which includes the right to sell it, lease it, use it, and enjoy it. When someone holds the title to a property, it means they have legal proof of ownership and the right to transfer ownership under the law.

Understanding title is crucial, as it affects various aspects of real estate transactions, including the ability to secure financing and the potential for disputes over ownership. A clear title indicates that there are no legal encumbrances or claims against the property, which is essential for a secure and valid sale. In contrast to the other options, the concept of title is fundamentally about ownership and legal rights, rather than historical ownership, market value, or physical documents.