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Part of the Series Guide to Selling Your HomeGetting Ready to Sell
Real Estate Agents
The Owner-Seller Option
The Selling Process
An affidavit of title is a legal document provided by the seller of a piece of property that explicitly states the status of potential legal issues involving the property or the seller. The affidavit is a sworn statement of fact that specifies the seller of a property holds the title to it. In other words, it's proof that the seller owns the property.
An affidavit of title is designed to protect the buyer from outstanding legal issues that might be facing the seller. If an issue arises after a transaction, the buyer has possession of a legal document—one that contains sworn statements by the seller—that can be used in court should some kind of legal action need to be taken.
Most states require an affidavit of title as part of the legal paperwork required for transferring property from one party to another. An affidavit of title is also generally required by the title company before it will issue title insurance.
Guidelines for an affidavit of title can vary from state to state. Generally, the basic contents include personal details about the seller, including a name and address. In addition, there are statements to the effect that:
Beyond the items above, there can be specific exclusions given in an affidavit of title. For example, the affidavit of title may note that there is a mortgage remaining on the property that will only be paid off after closing.
An affidavit of title can mention a specific lien or issue does exist, but the title often outlines the process of how the condition is being handled. It should also mention things like easements, encroachments, and other issues that may not be shown on public records.
If an exception in the affidavit of title is an area of concern for the buyer, the buyer can notify the seller that the item must be remedied prior to closing. This could be as simple as having the seller clear a lien or something more involved such as paying for an updated survey of the land allotment and any easements upon it.
In addition to a signed attestation by the seller or issuer of the affidavit, an affidavit of title must contain a valid seal from a current notary.
An affidavit of title protects a buyer of real property in a variety of ways. This legal document often serves three main purposes:
This document is also called an owner's affidavit, seller's affidavit, owner's declaration, or borrower's affidavit. Though it's most common is real estate transactions, the affidavit of title also applies to other transactions such as transfer of a car title.
The affidavit of title will generally contain specific language. The document must include the seller's name, address, and statement from the seller indicating they are the owner of the property for sale. The affidavit must also state whether there are liens on the property, whether the seller has had a bankruptcy, whether the seller is selling the property to other parties, and if there are any assessments against the property.
Both title companies and mortgage lenders will often require an affidavit of title as part of the sale of real property.
If there is a lien on the title, the seller can choose to have the lien removed by satisfying the obligation prior to sale. For example, if you remodeled your bathroom but failed to fully remit payment to the contractor, the contractor may place a mechanic's lien on your home.
To remove the lien, you must satisfy your debt, obtain proof of payment, and request the lienholder remove the lien. A lien is removed by filing a Release of Lien on Real Property form and recording the document at the country recorder's office.
An affidavit of title is a legal document outlining the ownership and potential legal issues involving a specific property. A seller is often required to prepare one as part of a sale, and the statement must certify that the seller is the true owner of the land and whether liens or other legal matters are pending regarding the property.
Many states require an affidavit of title. Title companies and lenders typically require one to complete the closing.
An affidavit of title can be provided to you by legal counsel. Alternatively, free drafts with vague language can be found online. The affidavit must be signed by the seller of property and must be notarized.
An affidavit of title includes information on the seller including their name, address, and a statement regarding their ownership of the property for sale. An affidavit of title also contains a sworn statement certifying the status of the property in regards to liens, bankruptcy proceedings, sales to other individuals, and other pending legal matters.
Part of the Series Guide to Selling Your HomeGetting Ready to Sell
Real Estate Agents
The Owner-Seller Option
The Selling Process
A delinquent mortgage is a home loan where the borrower has failed to make their required payments on time.
A workout agreement renegotiates the terms of a loan to provide a measure of relief to the borrower.A principal reduction is a decrease in the principal owed on a loan, typically a mortgage, as an alternative to foreclosure on the home.
A judicial foreclosure is a legal proceeding that allows lenders to obtain a power of sale through the courts when a borrower defaults on their mortgage.
An owner-occupant is a resident of a property who also holds the title to that property.Pre-foreclosure refers to the early stage of a property being repossessed due to the property owner’s mortgage default.
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