Definition
Title Deed
A title deed is the legal document that establishes a person's ownership of a property and their right to use, sell or transfer it.
Verifying a clear and marketable title — that the seller genuinely owns the property and can transfer it free of disputes, liens or defects — is the single most important step in any property purchase. A chain of title traces ownership through successive deeds to confirm there are no breaks or competing claims.
Buyers commonly review past sale deeds, the encumbrance certificate, and approvals, often with a lawyer, before proceeding. A defective or unclear title can lead to costly litigation or even loss of the property, so thorough title due diligence protects what is usually a household's largest investment.
Related terms
- Property RegistrationProperty registration is the legal recording of a property transaction with the government sub-registrar, making the transfer of ownership official and legally enforceable.
- Sale DeedA sale deed is the core legal document that records and effects the transfer of property ownership from seller to buyer, signed and registered before the sub-registrar.
- Encumbrance CertificateAn encumbrance certificate (EC) is a document showing whether a property is free of legal or financial liabilities such as mortgages, loans or disputes, over a given period.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.