How To Write An Affidavit To File With Register Of Deeds

An Affirmation of Championship is a legal document containing a sworn statement where the seller of a piece of holding swears that they concur the belongings's championship. In other words, an Affidavit of Title is legal proof that a seller owns a property and has the correct to sell it to another person.

Table of Contents

What is an Affirmation of Championship?
When Practice I Need an Affirmation of Championship?
What are the Consequences of Non Having an Affirmation of Title?
Common Situations for Using an Affidavit of Title
What Should an Affidavit of Title Include?
Affidavit of Title Sample
Affirmation of Championship FAQs

1. What is an Affidavit of Title?

An affirmation of title is a document created by a seller, and designed to protect the buyer of some type of holding. The property may exist a home, including a town-home or condominium. It could exist a cottage or vacation holding. It might be a piece of country with no buildings on it. An affidavit of title does not distinguish between these types of property.

In the affirmation, the buyer makes several statements under oath.

These statements include:

Confirmation the seller is, in fact, the owner of the property in question;
Confirmation the seller is non currently in bankruptcy proceedings;
The seller is non also selling the holding to some other person; and
A detailed list of any and all liens on the belongings or a representation there are no liens on the property.

Why Are These Confirmations and Details Important?

Confirmation of Ownership

With few exceptions, only the owner of the belongings tin can sell the belongings in question. Confirmation of ownership provides the purchaser with assurances both that the seller is the true owner, and that they are the merely owner of the property.

Confirmation the Seller is Not Currently in Defalcation Proceedings

When someone is in bankruptcy proceedings, there are limits on what they tin practise with their possessions, including holding. During bankruptcy, another person, called a trustee, decides whether a property tin exist sold, and under what weather condition it tin can be sold. The property owner must get permission from the trustee to sell the property. Consequently, an Affidavit of Championship assures the purchaser that the possessor is in a position to make decisions, such as selling the belongings.

The Seller is Non Selling the Belongings to Another

Manifestly, information technology is illegal to sell the same slice of belongings to more than one person. Nonetheless, information technology has been washed often enough that assurances are required in an Affidavit of Title. This assures the purchaser they are the only one giving money to the seller in commutation for title to the property.

What is a lien, and what types exist?

The Presence of Holding Liens

A "lien" is a claim a creditor has either acquired or been granted by the owner of the property. A lien won't forestall a sale of the property – it only dictates who gets the coin from the sale, and in what club. A title company or attorney should make certain the liens are paid off and the championship is cleared before passing the title to you.

The Absence of Holding Liens

If a property is gratuitous of liens, this means no one has a financial interest in the holding other than the belongings holder. This assures the purchaser the holding owner is gratuitous to sell the property to anyone they choose, without obligation to others.

four Types of Property Liens

1. Mortgage Liens

In that location are several different ways a lien might exist placed on property. For example, when a homeowner takes out a mortgage on the property, the mortgage company places a lien on the property for the amount of the mortgage.

two. Homeowner's Association Lien

If you own a condominium and yous fail to pay your homeowners association (HOA) ante, your HOA volition take action. Depending on the bylaws of your association, they may exist able to place a homeowners' association lien on your property for the amount owed.

3. Mechanic'south Lien

Imagine you rent a contractor to perform work on your home, and and so don't pay the contractor, who and so sues you for payment. If they're successful in winning a judgment against you, they have a right to place a mechanic's lien on your belongings until you pay the amount owed.

4. Federal Tax Lien

Finally, if y'all fail to pay your federal income taxes, the government tin can put a federal revenue enhancement lien on your belongings. The government's federal tax lien e'er takes first priority in the order of paying the liens. In other words, if a property has a federal revenue enhancement lien of $25,000, and a mechanics lien of $25,000, and the house is sold for $30,000, the federal tax lien is paid offset and in full. The mechanic's lien is paid to the extent in that location are funds left over to do so.

An Affidavit of Title is sometimes referred to as a General Title Affidavit or a Seller's Affidavit. The affirmation may comprise additional data about the holding.

Affidavit of Title PDF Sample

This sample affidavit of title is a record of the buying of property by a fictional "Seth Martin".

2. When Practice I Need an Affidavit of Title?

If You Wish to Buy Holding

If yous are planning to purchase property, an affidavit of title provides proof of several important things, including:

Proof of Ownership

An affirmation of title provides show that the owner is, in fact, the possessor. Being sold holding by a fraudulent not-owner is a common existent estate scam.

Proof of Sellability

An affidavit of title also provides you information about whether or not the property can actually be sold.

For example, if the seller is currently in bankruptcy proceedings, they must get approval from a trustee before they tin sell the home, which can have a significant amount of time. Additionally, the affidavit will also ostend that the seller is not in the process of likewise selling the belongings to someone else.

Affidavits of title can as well include other information, such every bit:

If there are any easements on the property; or
If there are any boundary disputes.

In summary, an affirmation of title provides security to a purchaser should at that place be a subsequent challenge to title.

If You Wish to Sell Property

If you are the owner of the property, an affidavit tin can provide assurances to the purchaser, which were outlined in a higher place. These assurances include both that yous are who you say you are, and that you are free to sell the property at your discretion.

Whether you lot are buying or selling property, the creation of an affidavit of title takes little effort. Information technology can protect both buyers and sellers, so there really is no reason non to execute ane.

3. What are the Consequences of Not Having an Affirmation of Title?

Without an affidavit of title, the purchaser is unprotected from several unfortunate scenarios that could bear upon their legitimate claim on the belongings. Some consequences of purchasing property without an affidavit include:

Contending with Unexpected Legal Issues

Judgments confronting the property;
Boundary line disputes; or
Sellers field of study to power of attorney due to failing listen.

Becoming Responsible for Liens

Property subject to HOA liens;
Property subject to mechanic's liens; or
Belongings subject field to federal tax or other authorities liens.

Becoming a Victim of Fraud

An undisclosed lease agreement of the property to another;·
Undisclosed co-owners of the property;
Forged deeds;
Impersonation of the true possessor of the country; or
Property discipline to bankruptcy proceedings.

The consequences of non having an affidavit of title are many, and none are favorable to the purchaser. If the purchaser buys the property without knowing, for example, there is an cess on the property for new sidewalks and curbs, this does not excuse the new homeowner from responsibility for paying for the cess. If the home is the subject of an HOA lien, the HOA may have merits to the property, despite the fact you gave the seller money in exchange for the title to the holding.

Any seller reluctant to provide an affidavit of title should exist viewed with extreme caution.

Does Title Insurance aid to negate those consequences?

Title insurance is insurance you buy from a title company, and protects purchasers from financial losses if there is a lawsuit attacking the championship. It also protects new owners from monetary losses due to unknown restrictions on the title, such as a lease, easement, or city lien for street maintenance.

4. Common Situations for Using an Affidavit of Championship

The most common situation for using an affidavit of championship is when someone is buying or selling property such equally:

Land;
State with outbuildings; or
A dwelling, including:
- Townhomes;
- Condominiums;
- Houses; and
- Cabins or Cottages.

While an affidavit of title is a expert thought for any sale of belongings, title companies who offering championship insurance require them. Because title companies require them, nearly mortgage lenders volition also require affidavits of title.

Title insurance is a depression-price mode to protect yourself and your property from unexpected surprises.

five. What Should an Affidavit of Title Include?

An affirmation of championship starting time includes some language that declares the signer is swearing or affirming to the facts listed. Information technology then includes the following data:

Identifies the seller as the possessor of the property;
Lists the previous names the possessor may accept gone by in the 10 years prior to the signing the affidavit;
States there are not any liens, including:
- federal tax liens;
- state revenue enhancement liens;
- municipal liens;
- mechanics liens; or
- other judgments.
In the culling, identifies and details the liens that be;
If there are easements on the property, these should be detailed; and
Affirms there are no bankruptcy proceedings.

Affirmation of Championship Sample

Beneath y'all can notice what an Affidavit of Championship typically looks like:

Affidavit of Title

vi. Affirmation of Championship FAQs

I take a bankruptcy on my record. What happens if I leave it off my affirmation of title?

Exercise not misrepresent whatsoever facts on your affidavit of title. In this document, yous are affirming nether oath the truth and veracity of your statements. Misrepresentation, at best, could exist construed equally fraud.

I want to buy a property, but the owner is refusing to sign an affidavit of title. Should I be concerned?

If a person refuses to sign an affidavit of title, there are several things that should business concern you lot. A partial listing of potential concerns is below:

The person doesn't actually own the property;
The person owns the property with another person who doesn't want to sell or doesn't know virtually the proposed sale;
There are liens on the belongings; or
The person is not authorized to sell the property for another reason.

How practice I become a mechanics lien off the title if I've already paid?

If you lot have completed the payment, there should non be a lien on your holding. Obtain the proof you have paid the bill and transport it, along with a alphabetic character, to the lienholder. Ask them to remove the lien. This is probably simply an oversight on the contractor'south function. However, if they decline to elevator the lien, you may take to file a lawsuit to "quiet championship."

The regime put a lien on my house. How do I get rid of the lien?

First, you have to pay the amount owed. Next, ask the courtroom to release the lien.

How does a lienholder release a lien?

A lienholder releases a lien by filing a form called a Release of Lien on Real Property, notarizing it, and recording the document at the canton recorder's part.

I bought a property with greenbacks and later discovered it has a mechanics lien. Shouldn't the old owner continue responsibleness for the lien?

Liens stay with the holding, not the person who endemic the property. Consequently, the mechanic's lien is now your responsibility.