how a warranty of title is used to confirm a transaction
a warranty of title is automatic in most sales but if the seller is acting as a representative no warranty of title may exist this situation might arise in an auction a sheriff s sale or an estate sale in these cases the person selling the property is not its owner and therefore may not be aware of any other entity s rights in that property warranty of title can give the buyer of a property legal recourse to sue the seller if there is a claim or issue attached to the property for example an heir of a prior owner may have an unresolved claim to the property that was not made known by the seller the buyer could pursue litigation to recoup the money they put toward the purchase along with damages other risks to completing a transaction can include ongoing disputes about the boundaries that define the property the owners of the adjacent real estate might claim the property lines are different from what the seller presented to the buyer liens for unpaid bills and taxes could exist further complicating the transaction if the property is completely free of impairments and ownership is properly established then the property a clear title and the seller can offer a warranty of title without any encumbrances 