Warranty of Title

A warranty of title is a seller’s guarantee that they have the legal right to transfer ownership of a property and that no other parties have claims or encumbrances affecting that title. It protects buyers by providing legal recourse if undisclosed claims or defects in ownership surface after the sale.

Key takeaways

• A warranty of title promises the seller has the right to transfer clear ownership and that no third parties hold undisclosed claims.
• This warranty is usually included in a warranty deed and gives the buyer grounds to sue for damages if later claims arise.
• A quitclaim deed does not provide a warranty of title; it only transfers whatever interest, if any, the grantor holds.
• Some sales (e.g., auctions, sheriff’s sales, estate sales) may not include a warranty because the seller is not the owner or cannot guarantee absence of claims.
• Common title problems include liens, boundary disputes, and unresolved claims from heirs or prior owners.

What the warranty covers

A warranty of title typically guarantees:
* The seller has legal ownership and authority to transfer the property.
* The title is free from undisclosed liens, encumbrances, or competing claims.
* The buyer will be protected against future claims originating before the transfer.

These assurances are normally formalized in a warranty deed, which transfers property and records the warranty.

How it differs from other deeds

• Warranty deed: includes the warranty of title and offers the buyer the strongest protection.
• Quitclaim deed: conveys the grantor’s interest without any warranty—if the grantor had no valid interest, the buyer receives nothing and has limited recourse.

Common title issues that affect transfers

• Liens for unpaid taxes, mortgages, or judgments.
• Boundary or easement disputes with neighboring properties.
• Claims by heirs, former spouses, or creditors not disclosed at sale.
• Defects in prior transfers (incorrect documentation, fraud).

If such issues exist and the seller provided a warranty of title, the buyer can pursue legal remedies against the seller.

When a warranty may be absent

A warranty of title may not apply when the seller is not the property owner or cannot make warranties—for example:
* Auction sales
* Sheriff’s or foreclosure sales
* Estate or trustee sales where the seller acts in a representative capacity

In these cases buyers often purchase “as is” and receive limited or no warranty protection.

Buyer protections and practical steps

To reduce risk, buyers commonly:
* Require a warranty deed when possible.
* Order a title search to uncover liens, encumbrances, or competing claims.
* Purchase title insurance to protect against unknown defects that survive closing.
* Consult a real estate attorney for complex situations or disputed claims.

Remedies if a claim arises

If a valid undisclosed claim surfaces after purchase and a warranty of title was given, the buyer may:
* Sue the seller for damages or to recover the purchase price.
* Seek correction of title through quiet title actions (depending on jurisdiction and circumstances).

Conclusion
A warranty of title is a key protection for buyers in property transactions. Understanding the type of deed being used, conducting a title search, and considering title insurance are practical measures to ensure ownership rights and to minimize exposure to post-closing claims.