What is meant by the term "title opinion"?

The term "title opinion" refers to a professional assessment of the title after investigation, typically conducted by an attorney or a title expert. This assessment involves a thorough examination of public records to determine the legal status of the title, including any potential issues such as liens, judgments, or competing claims. The title opinion ultimately provides insight into the validity of the title and indicates whether the property can be safely sold or transferred without legal complications.

This assurance is crucial for buyers and lenders because it helps them understand the risks associated with a property before proceeding with a transaction. It is distinctly different from other concepts, such as a certification from the government or a legal document that conveys ownership, which serve different purposes within real estate transactions. A title opinion focuses specifically on the legal standing of the title itself, making it a vital component of the title insurance process.