Definition
An Affidavit of Title is a legal document signed by a property seller, confirming that they legally own the property, have no undisclosed liens, and that there are no legal claims against the title. This affidavit provides assurances to the buyer that the seller has the right to transfer ownership.
Explanation
Before closing on a real estate transaction, a seller is often required to sign an affidavit of title to protect the buyer and lender from potential ownership disputes or hidden claims. This document typically includes:
- A statement confirming ownership of the property.
- A declaration that there are no liens, unpaid property taxes, or lawsuits against the property.
- A promise that the seller has not sold or transferred the property to anyone else.
If a problem arises after closing—such as an undisclosed lien or a legal claim against the property—the affidavit of title can be used to hold the seller legally accountable.
This document is often required by title companies and mortgage lenders before issuing title insurance, which protects buyers against defects in the property’s ownership history.
Example
A homeowner sells their house and signs an affidavit of title stating that they are the rightful owner and that no outstanding liens exist. However, after closing, a previously undisclosed contractor’s lien surfaces. If the affidavit was fraudulent or incorrect, the buyer may use it as legal grounds to hold the seller responsible for clearing the lien.