Have you heard of the term ‘title guarantee’? This is usual in conveyancing transactions, where the seller will sell their property with a ‘full’ or ‘limited’ title guarantee. During this process, it is important to be aware of this and the potential consequences that may arise.

There are three types of title guarantee;

  • Full title guarantee,
  • Limited title guarantee, and
  • No title guarantee

This blog will provide reassurance on the meaning of the three types of title guarantee.

Full title guarantee;

Essentially, this maintains that the seller observes the right to sell the property. The seller will dispose of their whole interest in the property. In a situation where the interest is leasehold, this means that the seller obtains the right to sell the lease whole part. Overall, this is the most beneficial because another party will be unable to make a claim to the property.

Limited title guarantee;

This arises when the seller is unable to guarantee if there are any rights over the property, financial charges or any information on possible rights and covenants.  For example, when the property is being sold by an Attorney, the Executor of an Estate. Purchasing a property with a limited title guarantee is less valuable. This does not provide much certainty for the buyer, as compared to a full title guarantee.

No title guarantee;

This occurs when there is almost no knowledge about the property. A liquidator selling a house is an example of selling with no title guarantee. In this case, no covenants for title are given and there is nothing in respect of which the buyer can sue.

Overall, it is vital that a thorough investigation on title guarantee is carried out to minimise future risks. It is necessary for both parties to be informed and to instruct legal professionals on their behalf.

How we can help you

Attwells has extensive experience with advising potential buyers and sellers on title guarantees. Call us today on 01473 229200 or email us at info@attwells.com for further information and a fee quote.