Warranty of Title

A warranty of title is a promise by the seller of a property that they have the right to sell it and that the property is free from any liens or other encumbrances. The warranty of title is an important part of the real estate purchase process because it protects the buyer from unknowingly buying a property that is not actually owned by the seller or that has liens or other problems.

The warranty of title is typically included in the purchase agreement for a property. It is a separate document from the purchase agreement, but it is often attached to the purchase agreement as an exhibit. The warranty of title is typically provided by the seller's title insurance company.

The warranty of title is a legal obligation on the part of the seller. If the seller breaches the warranty of title, the buyer can sue the seller for damages. The buyer can also sue the title insurance company if the title insurance company fails to provide coverage for a defect in the title.

The warranty of title is a valuable protection for buyers. It helps to ensure that buyers are not buying a property that is not actually owned by the seller or that has liens or other problems. However, it is important to note that the warranty of title is not a guarantee that the property is free from all defects. The warranty of title only covers defects that are known to the seller at the time of the sale.

There are two types of warranties of title: general and special. A general warranty of title promises that the seller has good and marketable title to the property. A special warranty of title promises that the seller has good and marketable title to the property subject to certain specific exceptions.

The specific exceptions in a special warranty of title typically include liens, encumbrances, and defects in the title that were known to the seller at the time of the sale. The buyer should carefully review the specific exceptions in a special warranty of title to make sure that they are aware of all of the defects in the title that are not being covered by the warranty.

The warranty of title is an important part of the real estate purchase process. It helps to protect buyers from unknowingly buying a property that is not actually owned by the seller or that has liens or other problems. However, it is important to note that the warranty of title is not a guarantee that the property is free from all defects. The buyer should carefully review the warranty of title to make sure that they understand what it covers and what it does not cover.