A common question we are seeing more frequently in conveyancing transactions is ‘what is the difference between a full and limited title guarantee?’.
When selling a residential property in England & Wales, the main difference between full title guarantee and limited title guarantee lies in the level of assurance the seller provides regarding the property’s legal title.
Full Title Guarantee:
With a full title guarantee, the seller assures the buyer that they have the legal right to sell the property and that there are no undisclosed liabilities or third-party claims against the property. This guarantee provides the highest level of protection to the buyer, as the seller is liable for any defects in the title, even if they were unknown at the time of the sale. This is usual where the Seller is the legal owner of the property.
Limited Title Guarantee:
In contrast, a limited title guarantee means that the seller only guarantees that they have not done anything to adversely affect the title during their ownership. This may include the seller’s actions, but not those of previous owners. The seller’s liability is limited to what is specifically outlined in the contract. This option offers less protection to the buyer compared to full title guarantee. This is usually when an Executor or Personal Representative is selling or transferring a property rather than the legal owner.
When buying a property, it is important to be aware of whether your home will have a full title guarantee or limited title guarantee. Our team of expert solicitors are more than happy to advise you.
Call us today on 0161 330 6821 or email bromleys@bromleys.co.uk