What is a warranty of title?

A warranty of title is a legal promise made by a seller that the property they are selling is actually owned by them and that there are no outstanding claims on the property, such as a mortgage or lien. This type of warranty is important in a real estate transaction, but it can also be used in other types of transactions, such as selling a car or piece of machinery. In the state of California, a warranty of title is specifically addressed in California Civil Code section 1102, which states that the seller must guarantee that they have title to the property, free from all claims and encumbrances. This includes any liens or encumbrances that were placed on the property prior to the sale, as well as any potential liens that could be placed on the property after the sale. In order to make a valid warranty of title, the seller must have clear title to the item, meaning that they must be able to produce proof that the title is free and clear of debt, liens, or any other legal obligations. This can be done through a title search or other forms of legal research. The seller must also provide the buyer with proof of the warranty in the form of a document that states that the seller makes no claims in regards to the title. The warranty of title is a critical part of any real estate purchase, as it protects both the seller and the buyer from potential legal disputes if there is ever a dispute over the title of the property. The warranty of title also ensures that the buyer knows that they are getting a legitimate and satisfactory transfer of property rights.

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What is a warranty of title?

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