What is title in real estate

One legal right you will gain when buying a house in New Jersey is the real estate title deed. 

This title grants you legal and exclusive possession of the property, allowing you to enjoy all the benefits and responsibilities that come with being an owner.

If you need help reviewing your title, our NJ real estate attorney is here to guide you through every step of the process. 

Contact us to protect your investment and ensure your peace of mind.

What you need to know about New Jersey property titles in 2025

The title deed is a legal document that shows you own the property, giving you control and responsibilities over it.

Individuals, couples, and even entities can hold title, meaning they share the rights and responsibilities of the property. Understanding these aspects is essential to protecting your investment in the New Jersey real estate market.

What rights do I get when I receive the title deed?

Upon receiving the title deed, you immediately acquire several rights, such as:

• Possession, 
• Control, 
• Exclusion, 
• Disposition, and 
• Enjoyment. 

These rights allow you to use and enjoy your home as you see fit, prevent others from entering your home without your permission, and give you the right to sell it.

However, these rights have certain limitations. For example, they are subject to local laws, and if they are part of a homeowners association (HOA), they must also comply with any restrictions imposed by the association.

What does “title” mean in real estate?

In real estate, title grants ownership rights to a piece of real estate. When you purchase a home, you will receive and sign a document confirming that you are the new owner. 

This title is registered with government agencies and shows your name as the new owner, as well as details about the mortgage loan if applicable. 

What Is The Difference Between A Property Title And A Property Deed?

The main difference is that the deed is the physical document that transfers the property from one person to another. On the other hand, the title is the legal concept that indicates who has the rights and responsibilities over the property.

What is a property deed?

As we have seen, property titles are transferred through deeds. Thus, a deed is the legal document that actually transfers the title of a property from one person to another. 

The deed is signed by the seller, known as the asignor while the buyer, called the assignee, receives the ownership rights. 

The purpose of a deed is to serve as proof of the transfer of title to property. 

In addition to the property deed, there is also a quitclaim deed in New Jersey. You can read a blog focused on this deed on our website. 

What is the process of property deed?

The deed process begins with a New Jersey property title search to review public records and confirm the owner and any associated debts. 

An examiner creates an abstract of title to ensure a marketable title. The settlement agent then prepares documents, including the deed, that the seller signs at closing to transfer the property to the buyer. 

Once this is done, the buyer signs the new note and mortgage and the old loan is paid off.

When I buy a house, do I receive a deed or title?

Typically, when you buy a home, you receive both the deed and the title. This is because when you close the transaction, the title is transferred into your name through your local county clerk’s office. 

After completing the document signing process, you will receive a physical copy of the deed along with the other documentation.

Types of property titles

Real estate ownership, or titles, can take several forms. These include:

Tenancy in common, TIC

It involves 2 or more individuals who share ownership of a property, but each owns their own share individually. 

Each co-owner can sell or transfer his or her share and also leave it as an inheritance.

Tenants by entirety, TBE

It is a title that transfers property to a legally married husband and wife, treating them as a single entity. 

If one spouse dies, title passes completely to the surviving spouse.

Joint tenancy

It implies that 2 or more people own a property jointly, with equal rights to the property during their lifetime.

If you want to sell a jointly owned house, we invite you to find out more in our respective blog or by contacting us.  

Community property

It is a form of marital property where both spouses own the assets acquired during the marriage in equal parts. 

This means that each person can sell or transfer their half, or leave it as an inheritance.

Sole ownership

This is when one person or entity owns the entire property. It is usually applied to:

• Single individuals, 
• Married individuals without the participation of their spouses, or 
• Companies with the appropriate structure to invest in real estate.

Less common types of property titles 

• Corporate ownership: Allows a legal entity, such as a company that is owned by shareholders, to hold title to property. 
• Partnership owners: Allows corporations to own real estate. This can be formed by 2 or more individuals doing business for profit. 
• Trust ownership: The legal entity that owns the property is managed by a founding or designated trustee on behalf of all beneficiaries of the trust. 

Elements of a property title

When purchasing a property, it is essential to understand the key elements of the title to avoid future inconveniences. Below are the most important aspects you should be aware of:

Title Report

Before a real estate transaction is finalized, a title report is prepared to identify any potential problems with the ownership of the property. 

This report includes details on:

• Current title,
• Legal description of the property,
• Liens, 
• Easements, and 
• Any existing restrictions.

Title search

Specialized companies conduct a search of public records to confirm who the rightful owner of the property is and to detect any defects in the title.

Liens

A lien is an obligation placed on property to satisfy a debt, such as unpaid taxes or loans.

It is essential that these liens be resolved prior to the sale of the property.

The State of New Jersey has an official website for searching for Liens. To do so, please click on the following link.  

Easements

An easement is a right that allows another person to use a portion of your property for a specific purpose. An example is access to a road or pedestrian path.

Defects in the title of property

Defects may include unresolved property claims, hidden liens, or unrecorded easements. 

These problems can arise even after purchase and affect your rights to the property.

Title Insurance

Title insurance in New Jersey provides protection to the buyer against defects in the title that were not discovered during the initial search. 

Covers the costs associated with resolving any ownership issues.

Warranty deed

This document is provided by the seller and guarantees that the title is free of defects and liens. 

It generally offers additional protection in case problems arise with the property.

It should be noted that there are two types of warranty deed: 

• General Warranty Deed: This deed guarantees the buyer that the seller has full title to the property, the right to sell it, and that there are no hidden problems with the property. 
• Special Warranty Deed: Similar to the above, but only guarantees title for as long as the seller owned it. Typically used for commercial property purchases, not residential properties.

What is a certificate of title?

A certificate of title is a statement provided by a title insurance company that determines who owns a property based on a review of public records. 

It is important to note that a certificate of title is simply an opinion on the condition of the property and not a warranty.

Do you already know what a certificate of occupancy is in NJ? This document is essential for occupying a property. 

Why should I contact Curbelo Law before having a Real Estate property title?

When buying or selling a property, it is crucial to understand all the legal aspects involved in the transaction. 

A real estate attorney can identify and resolve any issues that may arise, ensuring you are well informed and protected every step of the way.

At Curbelo Law, our real estate attorney is here to provide you with personalized advice, helping you navigate any real estate transaction with confidence. 

Contact us today to get the legal support you need.