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Guarantee of Title

DEFINITION

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EXPLANATION

Guarantee of title is the warranty that title is clean as indicated through public records. The guarantee of title acts as a guarantee from the seller to the buyer that no additional parties hold an interest or a lien on the property upon the sale of the property. This is done to protect the interests of the buyer in guaranteeing that the buyer is the only party with possession of the property.

A warranty deed is an example of a guarantee of title by the seller to the buyer that the seller will be held liable for damages if title is later found defective.

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