Whenever you want to sell a property, make sure you have the right to make that transfer!
A warranty of title is one way of ensuring that a property is being legally sold and that no one else has a claim on it. A standard warranty of title is included in a warranty deed, which protects the buyer and ensures that the seller has the full legal right to sell the property. It also promises that the seller does not know of any property issues.
Complications if there’s a claim
Say you had gotten divorced, and either you or your ex-spouse’s name wasn’t removed from the deed and title. If one of you tries to sell the home, a title search will find that someone else has an interest in the property. In that case, the seller must decide whether to go through with the sale.
Why?
They don’t want any debts of the previous owner to come back and haunt them or find out that the seller had no legal right to sell the home. The seller will also be unable to secure a clear title to the property.
Use a quitclaim deed to release individuals from an interest in the property
To remove an individual’s interest in a property, you’ll file what’s known as a quitclaim deed. A quitclaim is used when the property is transferred from one legal entity to the next without exchanging money. The most common use of a quitclaim is transferring property from parent to child or removing an ex-spouse.
In estate sales, warranties of title are often not included, as the owner has either died or transferred the property to someone else.
When buying or selling a home, work closely with your agent to ensure a clear title and smooth transfer of property.