Full title guarantee vs limited title guarantee

Full title guarantee provides you with the most secure level of protection when buying a property, whereas with limited title guarantee you are potentially at risk of undisclosed liabilities.

Full, limited, or even no title guarantee refers to how much assurance the seller can provide about the legal title for the property they’re selling. This can have big implications when buying a property, so it is best to either have a full title guarantee or undertake an investigation into the property’s title.

What is full title guarantee?

With a full title guarantee, the seller assures the buyer that they have the legal rights to sell the property and will do everything they reasonably can to ensure the buyer will acquire a good title for the property.

Full title also ensures that there is no outstanding mortgages or costs which the buyer is expected to pay, as long as these costs could reasonably be known by the seller. This is the highest level of protection you can get when buying a property.

What is limited title guarantee?

A limited title guarantee accounts for the sellers right to sell the property but not the actions of previous owners. Limited title guarantees are often used when an Executor or Personal Representative, who have no personal knowledge of the property, is responsible for selling the property on behalf of the owner. There is no guarantee that there aren’t additional financial charges or unknown right claims which may lead to unexpected issues and costs for the buyer down the line.

If you seller offers limited or no title guarantee, you should procure a legal investigation into the property’s title so you can be aware of any issues you could face. It is also a good idea to consider getting defective title insurance, so you are covered for any extra fees.

At DFA Law, we’re here to assist you with managing buying or selling your property, get in touch to learn more.