Which document is crucial for proving ownership in vehicle or home transactions?

The certificate of title is essential for proving ownership in vehicle or home transactions because it acts as the official document that indicates who legally owns the property. This document is typically issued by the state’s Department of Motor Vehicles or an equivalent authority and includes important details such as the owner's name, the property's unique identification number (like a VIN for vehicles), and any liens or encumbrances attached to the property.

In property transactions, the certificate of title confirms that the seller has the legal right to transfer ownership to the buyer. It also protects the buyer by verifying that there are no undisclosed claims against the property. Unlike other documents that may provide a record of the transaction or details regarding leasing or insurance, the certificate of title directly correlates to legal ownership status, making it a crucial document in such transactions.