What is a warranty of title?

A warranty of title is a promise made by a seller of property that the title to the property is clear, free from any liens or encumbrances. This promise is meant to protect the buyer from any potential issues that could arise due to the property having an unclear title. In North Carolina, a warranty of title is enforced by a statutory lien doctrine, which states that any person who has the right to possess and use the property is entitled to receive compensation for any damage they incur as a result of the incorrect title. This means that if a buyer discovers that the title to the property they purchased is wrong or has any sort of lien or encumbrance on it, they can file a claim against the seller to receive compensation for their harm. Furthermore, in North Carolina, the seller of the property may be required to provide a deed of trust, which is a document that serves as further protection for the buyer to ensure that the title to the property is free from any potential encumbrances.

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What is a warranty of title?

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