What Is an Absolute title?
An absolute title, also known as a perfect title, to a property is free of any encumbrances or deficiencies. An absolute title gives an unequivocal right of ownership to the owner, and cannot be disputed or challenged by anyone else. This is opposed to titles with liens, attachments, or judgments against them. Holders of absolute titles are the full owners of the property.
Absolute title is a title to a property that is free of any liens, judgments, attachments. The person that has absolute title possesses the unequivocal right of ownership.
If you plan to buy real estate it is desirable to perform a title search in the specialized agency. That allows to find any problems regarding to the title. The most common problems are:
- remaining taxes,
- a spouse that holds part of property,
The absolute title gives the owner additional rights:
- lease property
- rent property
Buying property without absolute title is risky and can lead to loss of money as well as the property.
In law, business, and real estate, a property title search is a way of identifying ownership interests or historical events affecting a piece of real property. A title agent is a specialist who searches through public land records and investigates to ensure the property seller owns a legal interest in the real estate he or she is selling. If a person has absolute title of real property, he or she has full ownership of the land in the eyes of the law. A person can have absolute title to a lease or leasehold estate (fixed period of ownership) and freehold (unlimited time length of ownership) properties. For a person to be granted absolute title, the property must be certified at the local real property registry (register of deeds), which is a government office that records land sales and transfer of ownership.
The rights an Absolute title provides
An absolute title has no outstanding contestations that might otherwise hinder the owner’s ability to use or dispose of the property as they see fit. The holder of the absolute title is free to sell the property at his or her discretion, which could give the buyer absolute title upon completion of the transaction, dependent on how the purchase was structured. The seller of a property can only transfer the portion of an absolute tile they are vested in. In other words, a buyer cannot obtain an absolute title through a seller who does not possess it.
The holder of an absolute title can also choose to lease or rent a property rather than to sell it outright. A financial institution might hold the absolute title for a property it has mortgaged. The rough the absolute title, the property owner, gains the right of ownership of a mortgage deed. That, in turn, would give the owner the right to call for full repayment of the outstanding mortgage debt, in certain circumstances, before the previously determined due date. With the absolute title, there might also be a clause that the owner establishes in the deed that allows for early termination of an existing interest in the property.
Ownership in real estate
Ownership in real estate brings with it a wide range of rights. When a person owns property in the form of ordinary remuneration, she has the highest and best property ownership form. Among the rights invested in a fee simple absolute owner are the right to sell, mortgage, give away, and otherwise encumber the property. Traditionally, there were two subclassifications of a simple absolute title. These include a simple fee to be determined and a simple fee on subordinate terms. There are two restrictions on the fee, a simple absolute title is based on limiting the use of real estate. In modern real estate practice, you rarely see them. A person can also receive a life estate in real property. A person who has a life estate has the right to use and enjoy the property, but only as long as she lives. After the death of the tenant, the title of ownership is automatically transferred to a predetermined person, referred to as a remainderman.