What is Bad Title?
A bad title usually doesn’t confer full ownership of a real estate to its holder due to other competing for legal or equitable interests. Approximately always connected with real estate, a bad title can restrict the titleholder from selling the asset. This phrase is a term for an encumbrance on the legal right of a titleholder from legally transferring an asset. The term “bad title” is mostly used in real estate, and in that case, the title may be encumbered due to a lien on the property, following taxes or failure to correct a building violation. For the titleholder to legally sell their home, they must solve any problem connected to the title. If a person that holds the title sells or transfers a bad title, the receiving individual does not lawfully own the property. In other words, for a bad title to move in any direction from one person to another, its position as a bad title must be rectified first.