Title

A document that lists the legal owner of real property, and which must be transferred in a sale of the property. The title will reflect the form of ownership, which may be a sole ownership, joint tenancy, tenancy in common, or others.

Putting ‘Title’ in Context

Imagine Greenway Capital, a well-established real estate investment management firm, is interested in acquiring Peachtree Office Park, a suburban office complex in Atlanta, Georgia. Peachtree Office Park consists of multiple buildings totaling 150,000 square feet of leasable space and is currently owned by a partnership formed by several private investors.

As part of their due diligence, Greenway Capital focuses on examining the title of the property. The title is crucial as it lists all legal owners and shows the chain of ownership through which the property has passed over the years. For Peachtree Office Park, the title reveals a form of ownership known as tenancy in common, where each of the investors holds an undivided interest in the property.

Understanding the title’s details helps Greenway Capital assess potential risks, such as disputes among owners or claims against the property from past owners or other parties. The firm also confirms that there are no liens or encumbrances that would impede the transfer of ownership.

To move forward with the acquisition, Greenway Capital needs to ensure that the title is clear and that they can obtain title insurance, which will protect them against future claims or legal suits regarding property ownership. The process of reviewing and transferring the title, managed by their legal team, is key to ensuring that Greenway Capital can claim sole ownership of Peachtree Office Park, thereby reflecting a change in the form of ownership from tenancy in common to a sole ownership under Greenway Capital.

This scenario illustrates how critical a clear understanding of the title is in real estate transactions, ensuring that the legal transfer of property ownership is recognized and protected.