Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
In property law, the term color of title describes a title to real property. Despite giving the impression that it does, it does not grant full, recognized title to a parcel of property, even if it may appear to have a good and legitimate title. For several potential reasons, such as adverse possession, a person who possesses property under color of title does not have the title. Or, the supporting written document, such as a deed, has a serious flaw that renders it invalid.
The color of title property rules states that a title with defects fails to prove actual possession of the property. Color of title is also frequently referred to as apparent title since the documents establishing the title could seem legitimate at first inspection. But in reality, they aren't. Written papers that claim to establish title but are insufficient legally serve as the foundation for the color of title.
Assume, for instance, that a buyer acquires a piece of land. The buyer should have possession of the deed, which grants them the title in fee simple, i.e., complete ownership rights to the land, by the time the sale transaction is complete. However, if the deed has any flaw, such as preventing it from adhering to local real estate laws, the title may be rendered invalid.
Taking this illustration a step further, imagine that neither the buyer nor the other participants in the transaction are aware that the title paperwork includes a mistake. Therefore, as is necessary for most real estate transactions, the buyer sends their real estate documentation to the county recorder of deeds or the municipal register office where the property is located.
Without an additional review of the paperwork, all parties likely concur that the buyer title is legitimate. However, the buyer does not have a legitimate title due to the mistakes in the provisions of the written documents meant to prove the title. The purchaser instead obtains color of title. A person who holds color of title to the property cannot transfer ownership to third parties.
