What term describes the portion of a property's total value owned outright by the holder of the title?

The term that describes the portion of a property's total value owned outright by the holder of the title is equity. Equity represents the difference between the current market value of the property and any outstanding mortgage or liens against it. When a property appreciates in value or when the owner pays down the mortgage, the equity increases, indicating the owner's stake in the property.

Understanding equity is crucial in real estate, as it reflects the financial interest the owner holds in the asset. For example, if a property is valued at $300,000 and the owner has a mortgage of $200,000, the equity in the property would be $100,000. This concept is key when considering refinancing, selling, or leveraging the property for additional loans.

In contrast, depreciation refers to the reduction in property value over time, capital gain pertains to the profit received from the sale of a property compared to its purchase price, and asset allocation involves the distribution of investments across various asset categories, which does not specifically relate to the ownership of property.