What is a "certificate of title"?

A "certificate of title" is indeed a document certifying the ownership of a property as verified by a title search. This document is important in the context of real estate transactions because it provides evidence that a title search has been conducted, confirming the current ownership and highlighting any liens or encumbrances against the property.

The certificate acts as a formal declaration that the title to the property is clear, and it summarizes the findings of the title search, including identifying the current owner and any legal claims to the property. This kind of documentation is essential for potential buyers, lenders, and other interested parties as it assures them that the property can be sold or mortgaged without legal complications regarding ownership.

In contrast, other options refer to different concepts entirely. A type of title insurance policy provides protection against losses arising from defects in the title but does not verify ownership itself. A legal contract for property leasing pertains to rental agreements and does not deal with ownership issues. Lastly, documents that specify property boundaries relate to surveys and do not address ownership directly. Thus, the first choice accurately captures the essence of what a certificate of title represents in real estate practice.