A Perfect Title is almost exactly what you think it is, and it is what we all hope for when buying or selling a house. In technical terms, it refers to ownership of a property through a deed free of any liens or defects. If you own a house with a perfect title, the ownership cannot be challenged by creditors and it is in optimal condition for a smooth sale or transfer should you want to get rid of it.

It is important to note that there is a difference between a title and a deed. A title is not a physical thing, it is just a reference to the rights of ownership to an asset. A deed, on the other hand, is a physical document for a piece of property that a team prepares when it is ready for sale, which also lists any outstanding debts and other legal details associated with the property. The reason that these two things go hand-in-hand is because a title company will research the title history of a property when preparing a deed or a mortgage.

While it is the ideal situation, having a perfect title is much easier said than done. There are some common obstacles that aren’t even problematic, such as easements or other third-party claims to some part of the property. Another issue that commonly arises is that the legality of a deed can be challenged, which can happen if a familial relationship was incorrectly listed or unknown heirs begin to come forward.

Because of these minor and easily fixable problems that still affect the status of a title, a perfect title in the real estate world is something of a unicorn. But, if you happen to come across one, it is a great opportunity for an easy commission on a sale that will be smooth because there are no complications with the deed to scare away buyers or muck-up sellers.