Bad Title Law and Legal Definition

Bad title is a title to property that does not confer distinct ownership. It is usually used in the context of real estate. A bad title will result when all interests in a real property are not properly transferred to the owner. A title may be clouded by causes such as unpaid taxes or other unpaid liens, a faulty or incomplete certificate of occupancy, improperly signed/written deeds, unresolved legal debts, an incorrect survey, or building code violations. Any such cause needs to be rectified before a property can be legally transferred. Bad title is also known as cloud on title.