Auction - Limited Title Guarantee

duff_man

I am looking at an auction property being sold with limited title guarantee. I am trying to work out why it has a limited title guarantee. I have viewed the property twice and nothing stands out. I am quite confident that services don't run across neighboring land and extensions havn't been built on the house. The property is freehold. It does have a charge against it by the mortgage company and the property is owned by a limited company. Could they be reasons its being sold with a limited title guarentee?

Could the condition below mean the property is sold with a limited title guarentee?

"not to refuse to complete the purchase of the Property on the basis of a financial charge and / or unilateral notice and / or restriction and / or any adverse entry whatsover subsisting over the Property (the “Adverse Entry”) where the Seller’s solicitors have been provided with an undertaking to remove the Adverse Entry by a firm of solicitors regulated by the SRA, a firm or company regulated by the Council for Licensed Conveyancers or by in-house Council. The Seller’s solicitors will at the Buyers reasonable request and sole cost use reasonable endeavours to enforce that undertaking to remove the said Adverse Entry from the title. This clause will take effect in the same way where the Seller is the registered proprietor of the Property but nonetheless the Adverse Entry remains on the title to the Property and the Seller has received an undertaking for its removal."

Thank you

 

anselld

It is usually just that the person selling does not have the knowledge of the property history in order to give full title guarantee, for example because they are executors for a deceased estate.

duff_man

Thank you. This is not the sale of a deceased estate so I was thinking what else could be the reason behind the limited title guarantee. 

user1977

Hopefully you're getting legal advice generally before you bid anyway?

propertyrental

When your solicitor reviews the sales pack he/she will advise you. This, of course, is before you bid.

FreeBear

duff_man said: This is not the sale of a deceased estate so I was thinking what else could be the reason behind the limited title guarantee. 

Limited title guarantee means that the vendor can not guarantee that there are no charges or third party interests in the property, or if there are any covenants lurking in the background. You say that this property is owned by a company - Possibly a repossession or part-ex where they do not have the full history.