The Contract

Question 1

What is the difference between full title guarantee and limited title guarantee?

Answer 1

Limited title guarantee: the seller only guarantees what occurred at the property during the seller’s ownership.

Full title guarantee: seller covenants that the property is free from all charges, encumbrances and third-party rights other those they could not reasonably be expected to know about.

Question 2

What is limited title guarantee?

Answer 2

There is an implied covenant that the seller has not encumbered the title to the property and the seller is not aware that anyone else has done so since the last disposition for value.