Transfer of title is the point at which legal ownership of goods passes from seller to buyer. The contract and governing law determine that point; it may be tied to payment, delivery, acceptance or another event and does not necessarily occur when transit risk transfers.
Where is title addressed?
Look for ownership, retention-of-title, delivery and payment clauses in the purchase agreement, terms of sale and applicable law. Incoterms allocate delivery, cost and risk but do not by themselves determine title.
Title versus possession
A carrier, warehouse or buyer may physically hold goods without owning them. Conversely, title may pass before the buyer receives physical possession.
Why does timing matter?
Title can affect rights on insolvency, resale, security interests, inventory recognition and recovery of goods. Accounting and legal conclusions may require separate analysis.
What evidence should be kept?
Retain the contract, payment and delivery events, bills of lading or warehouse records, acceptance evidence and any retention-of-title notice or release.
What should buyers avoid assuming?
Payment, an invoice or a freight document alone may not prove ownership. Confirm the complete contract and local legal treatment for material transactions.
