Legal Definitions - color of title

Definition: Color of title refers to a document or other instrument that appears to be a legitimate claim of title to a piece of land, but due to a title defect, cannot transfer or convey ownership. In other words, a person has "color of title" to a piece of property when, for one reason or another, the document evidencing title (a deed, for example) is invalid. Color of title is also known as “apparent title” since the document gives off an appearance of a valid title, but in reality, it is defective and invalid.

Example: John inherited a piece of land from his grandfather, but the deed was never properly recorded with the county. John believes he has a valid claim to the land because he has a copy of the deed, but since it was never recorded, he only has color of title. He cannot sell or transfer the land until he resolves the title defect.

Explanation: In this example, John has a document that appears to give him ownership of the land, but because the deed was never properly recorded, it is not a valid document. Therefore, John only has color of title and cannot transfer or sell the land until he resolves the title defect.