Alternate names: owner’s affidavit, seller’s affidavit, owner’s declaration, borrower’s affidavit
In real estate sales, the affidavit of title is signed by the owner of the property. It is used to protect the buyer from legal issues over ownership by giving them assurance from the seller that the property is free and clear of other claims of ownership to the title. Title companies often require an affidavit of title before they will provide title insurance. Affidavits of title can vary depending upon the specific details of the property and the state in which it is signed. In general, an affidavit of title will typically contain:
The seller’s name and address A statement indicating that the seller is the owner of the property A statement that there aren’t any liens against the property A statement that the seller hasn’t had a bankruptcy A statement that the seller isn’t selling the property to anyone else A statement that there aren’t any assessments against the property
Not all affidavits of title will be exactly the same. As a seller, for example, you may still have a mortgage on your property. In this common scenario, the affidavit of title that you sign will include an exclusion noting that there is a lien on the property. Providing fraudulent information within the affidavit of title is illegal. In order for an affidavit of title to be valid, it must be notarized.
How Affidavits of Title Work
Affidavits put the responsibility for any additional outstanding liens on the shoulders of the seller. Let’s say that you are selling your home. After accepting an offer, you and the buyer sign a sales agreement. Then, as a seller, you’ll likely have to fill out your affidavit of title and have it notarized before closing. Or, consider a scenario where you are the buyer. If you bought a home and you’ve found out that the seller had some renovation done before they sold the house but they failed to pay the contractor. Then, the contractor filed a mechanics’ lien against the property. With a valid affidavit of title, you have sworn evidence from the seller that there were no claims against the property at the time of sale. This can protect you from direct responsibility for the mechanics’ lien.
What Affidavits of Title Mean For You
For sellers, an affidavit of title is a document that you’ll need to complete before selling your home. You’ll need to ensure that you’re correctly stating all the facts about your property and provide the affidavit of title to the buyer. If you’re a buyer, an affidavit of title is an additional layer of protection against legal issues. They’re designed to protect you from any future claims of ownership or other legal problems. Physically possessing a document stating that the property was free and clear of outside claims at the time of purchase will help clear you of responsibility.
