What does the term "title" refer to in real estate?

The term "title" in real estate specifically refers to the legal ownership of property. When someone holds the title to a property, they have the legal rights to use, control, and transfer that property. This ownership can be established through various means, including purchase, inheritance, or transfer, and the title serves as proof of that ownership.

Understanding the concept of title is critical for transactions in real estate because it affects the ability to sell or mortgage the property and ensures that the ownership rights are protected. Proper title searches and title insurance are often utilized in real estate transactions to confirm that the seller has the right to transfer ownership and to protect the buyer from any disputes regarding ownership in the future.

Other choices do not accurately define the term "title" in the context of real estate. Signing a document at closing refers to the closing process itself, the price paid pertains to the financial aspect of the transaction, and the interest rate on a mortgage relates to the cost of borrowing funds to purchase the property. None of these options capture the legal essence of ownership that "title" represents.