Title to Real Property
The title refers to the ownership of the right a person has to possess or the right a person has of possession of the property. The title is given and shown through the use of deeds, through the transfer of property in a will, through court decrees and through law.
As explained in the Principles of Real Estate, there are three basic types of title--legal title, equitable title, and bare legal title.
"Legal title" is the right of ownership, possession, use, occupancy, and enjoyment of a parcel of real property held by an owner.
"Equitable title" is the interest in a piece of real estate held by a buyer under a real estate sales contract, or a contract for deed, to obtain absolute ownership of the property at a future date.
Legal title is still being held by the seller in his name, but the buyer has the equitable right to obtain ownership upon performance (that is when the terns and conditions of the contract are satisfied.)
Equitable interest in real estate or equitable title can be sold, assigned, mortgaged, and passes to a buyer's heirs upon his death.
"Bare legal title," also known as "naked title" describes title that lakes the usual rights and privileges
associated with the property, the homeowner still has the right of possession, use, occupancy, and enjoyment as long as he continues to repay the debt.