What does title transfer entail in the context of real estate?

Title transfer in the context of real estate specifically refers to the process of legally passing ownership of property from one party to another. This is a critical step in real estate transactions, as it marks the moment when the seller relinquishes their rights to the property and the buyer assumes ownership. The title transfer involves the preparation of legal documents, such as a deed, and may include the recording of these documents in the public records to ensure that the ownership change is officially recognized by the state or local government.

This process typically follows successful negotiations and other preparatory steps in the transaction, such as obtaining financing or conducting inspections. However, title transfer is distinct from negotiations or financial transactions like appraisals, and does not encompass the title search process, which is focused on verifying ownership and any claims against the property before the transfer takes place. Understanding title transfer is essential for navigating real estate transactions, as it involves legal responsibilities and protections for both the buyer and seller.