Guaranty Clause in Preliminary Report,
Need of Guaranty clause in preliminary report
When a property is being sold or bought the guaranty of the title of the property s to be taken by someone. When the preliminary report is submitted regarding the investigation carried out by the insurer. This investigation is made by checking all the public records in association with the land or the property. This will include the records of the times when the property was not into any known hands as well as the most recent records.
The use of this preliminary report is to make sure that the buyer is not cheated upon b the seller in any way. The main problem that may be faced by the buyer is that of title defect or the property being in mortgaged against any other loan or if there is a lien against the property.
The preliminary investigation is for the benefit of the buyer who must not suffer losses due to any defects in the title which may lead to a problem for the buyer and also a case of double loss. Firstly the loss of money that the buyer will sustain due to the loss of the property secondly the buyer will have fight the court case in which there is a lot of money that is involved. This is to be avoided at all costs and if there is an insurer involved it is always better to investigate the history of the property to ensure a hassle free ownership to the buyer.
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