Why is a Land Title Important?

Why is a Land Title Important?

4 July, 2024

A land title is a formal document that clarifies ownership of the land and the entitlements that go with it.

Land is the most important asset that most people will possess in their lifetime. Land is not a commodity that is available in unlimited supply, which means as the population grows, prices will inevitably rise. Consequently, owning land for an extended period tends to yield higher returns, particularly when purchasing in regions forecasted for substantial growth.

Land is commonly known as ‘real property’, denoting property that is stationary and cannot be moved, in contrast to personal property, which encompasses movable items such as goods and chattels. Specifically, when referring to a specific parcel, land encompasses the surface of the earth, the soil beneath it down to the centre of the earth, and the airspace above the surface. This definition encompasses all flora, crops and structures growing on or attached to the soil.

In reviewing the title, it is important to examine any related documentation that is referred to in the title document, such as restrictions or interests of third parties.

Related documentation may include:

  • Easements
  • Liens
  • Leases
  • Covenants
  • Legal agreements
  • Caveats

Restrictions and entitlements on the title are likely to impact on the form of development that is possible on the land, affecting its value. For this reason, a detailed search of related documents referred to in the title documents is essential.