Additional title documents: Overview, definition, and example
What are additional title documents?
Additional title documents refer to legal documents related to the ownership or transfer of property that go beyond the main title document. These documents can include things like deeds, certificates, or agreements that provide further details about the property's history, rights, or obligations. For example, if there are restrictions or liens on a property, additional title documents would be used to outline these details.
Why are additional title documents important?
These documents are important because they provide clarity and transparency regarding the property's legal status. They help protect buyers and sellers by ensuring that all relevant information is disclosed. Without these documents, there could be hidden risks, such as unresolved claims or encumbrances that could affect the ownership or use of the property.
For businesses involved in real estate transactions, having all necessary additional title documents ensures that they aren't surprised by any legal or financial issues after the property has been transferred.
Understanding additional title documents through an example
Imagine a business purchasing a piece of land for expansion. The main title document shows that the property is owned by the seller. However, upon reviewing the additional title documents, the buyer discovers an easement agreement that allows a neighboring property owner to use part of the land for access. The buyer now understands that they cannot build on that portion of the land and can plan accordingly.
In another scenario, a property might have a lien on it due to unpaid taxes. The title documents might show this, allowing the buyer to understand the full financial obligations before finalizing the deal.
An example of an additional title documents clause
Here’s how a clause about additional title documents might look in a contract:
“The Seller agrees to provide all relevant additional title documents, including any deeds, agreements, and certificates, necessary to transfer clear and marketable title to the Buyer.”
Conclusion
Additional title documents are essential for ensuring that the full legal picture of a property is understood before a transaction is completed. They help protect both buyers and sellers by disclosing all relevant information about the property's history, rights, and obligations. Always review these documents carefully to avoid potential legal or financial surprises in property deals.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.