Guaranty of Title

Why it is important to have guaranty of title

The title of a property or a piece of land that is being sold or bought has to be free of any disputes pertaining to either the title or any kind of prior liens. For this there is also a requirement of a grantor who can give you guaranty of title. This is important because a title dispute can very well lead you to a situation where you will not only lose your money and time but also get into a legal dispute where you will have to shell out more bucks in order to get the dispute settled.

The guaranty of title can be given by an individual or an insurance company. It is only after a strong verification that the guaranty must be taken the verification process involves the searching of the public records for any previous title defects as well as the liens and mortgages on the property.

His type of guarantee is not anticipatory. This means that this guarantee is not about what can happen in the future but for the facts that are associated with the past of the property. This kind of guaranty is for any defects of title that may arise due to the controversies that took place in the past. The controversies could be anything like title defects, liens associated with the property etc. The liens associated with the property gives the authority to the lender over the property giving rise to the title defects. This must therefore be cleared in order to make the deal.

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Guaranty of title.

The _________ Company, a corporation duly incorporated under and by the laws of the State of _________, for a good and valuable consideration to it paid, the receipt of which is here acknowledged, does here certify, guaranty, and warrant to _________, heirs, devisees, and grantees, and to _________ Association, mortgagee, that it has searched and examined the indexes to the records, papers, files, and documents, and the judgment dockets in the office of the Clerk of _________ County, _________, from _________[date], to _________[date], and that nothing is entered, indexed, or docketed in those indexes or dockets, between the above-mentioned dates, which affects or relates to the title of the premises particularly described as _________ on above plan in the annexed abstract of title, except the matters and things that are set forth and stated in the abstract, and numbered in the margin of it from No. _________ to No. _________, both numbers included. Including ten-year judgment search last past vs. _________. In witness, the company has here set its corporate seal and the hand of its treasurer on _________[date].