Color (law) - Color of Title

In property law, color of title refers to a claim to title which appears valid, but may be legally defective. Color of title may arise when there is evidence, such as a writing, suggesting valid legal title. The courts have ruled that deeds are mere color of title; the actual title to land is secured with an irrefutable instrument like a land patent, then when that land is subsequently conveyed to another owner by a deed, the deed colors the title to show the new owner. Thus, the chain of title from the land patent to the present may include many deeds, the actual title remains with the land patent and lawful deeds show the chain of title to the present landowner. Because the ownership in land is a very specific thing requiring precise and proper transfers of ownership, in times past, people always required a certified abstract be provided with a deed to insure the deed was not merely a color of title fiction. Today, title companies offer title insurance to secure such documents. Still, only a proper and lawful title, like the land patent, provides actual title to land; and, only a proper and lawful chain of title (deeds, etc.) from such a patent to the present can secure land rights to the landowner.

However, even with land secured by patent, the proper grant of title can be implied by adverse possession, which is the basis for claims exemplified in Torrens title. The Torrens system operates on the principle of "title by registration", in which the act of registering an interest in land in a state-operated registry creates an indefeasible title in the registrant, which, like the land patent, can be challenged only in very limited circumstances.