{“content”:"# Unpacking the Warranty of Title: Your Assurance in Property Transactions
A warranty of title is a guarantee provided by a seller to a buyer, ensuring that the seller has the rightful authority to transfer ownership and that no one else has claims to the property. Additionally, it may guarantee that no third party holds copyright, patent, or trademark rights concerning the property being transferred.
Grasping the Warranty of Title
A formal warranty of title is typically included in a warranty deed, a document used to legally transfer property in a sale. This deed guarantees that the seller possesses the legal right to transfer the property and confirms that no other entity, such as the IRS or an ex-spouse, has a lien or claim against the property. Essentially, the warranty title within a warranty deed protects the buyer\u2019s interests, providing legal recourse if anyone later attempts to assert a claim to the property.
In contrast, other deeds, like a quitclaim deed, do not offer a warranty of title. Without this guarantee, there is no assurance of a clear title; the grantor merely relinquishes any interest in the property. Should a dispute over ownership arise later, the buyer lacks the protections afforded by a warranty of title.
Utilizing a Warranty of Title for a Secure Transaction
In most sales, warranties of title are automatic. However, if the seller is merely acting as a representative, there may be no warranty of title. This situation frequently occurs in auctions, sheriff’s sales, or estate sales. In such cases, the person selling may not be the owner and thus may be unaware of other claims on the property.
A warranty of title allows the property’s buyer legal recourse against the seller if an issue arises. For example, if a prior owner’s heir has an unresolved claim on the property unknown to the seller, the buyer can pursue legal action to recover their investment and damages.
Transactions could face further risks from ongoing disputes over the property’s boundaries, with neighboring real estate owners claiming differing property lines than those communicated by the seller. Additionally, there might be liens for unpaid bills or taxes, complicating the transaction further.
If a property is free from impairments and ownership is unequivocally established, the seller can provide a warranty of title confidently, offering a clear title without encumbrances.
Related Terms: warranty deed, clear title, quitclaim deed, liens.
