Scenario 4: Assuming that a claim to a particular real estate was legally obtained, both parties were oblivious to an error in the deed or supporting documents.īoth parties are under the impression that the title is valid. These are enough grounds that can invalidate the claim and make the documents questionable. Scenario 3: A deed or a written contract stipulating ownership was forged, deemed incomplete, or was inappropriately delivered and accepted. Although each one holds a paper or proof that they own the property, each deed is null and does not hold a valid claim to the real property. Scenario 2: Two or multiple people bought the same real estate. Following the law, the claim will be passed on as having color of title and neither have legal claims. Scenario 1: “Person A” buys a parcel of land and assumes they are in possession of a valid title after the transaction.Īfter a while, the seller or “Person A” finds out about a defect in the papers – the seller did not, in reality, hold a valid title. Listed below are some examples where Color of Title may come up when dealing with real estate matters. This is why color of title is also known as “apparent title” since the papers give off an appearance of a valid title but in reality, it is defective and null. In property law, failure to establish legal possession claims to a real estate property would pass off as having a color of title.Ĭolor of title is used when a person is found having a claim which resembles a title however, it only passes the color of a title and does not hold the effect and implications of a real one.
What Is Color of Title?Ĭolor of Title is a phrase used to describe a claim that has the appearance, prerequisites, and characteristics of a title but due to some defect, it is deemed defective and invalid. In this article, we’ll delve into the specifics and understand the meaning behind color of title, legal concepts, and how color of title can be resolved in accordance with the law.Īlso, surprise, this will be on your real estate exam. This is the case when one has “color of title.”
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