An Affidavit of Title is a legal document used in real estate transactions to confirm that the seller owns the property and has the right to transfer ownership. This affidavit also ensures that the property is free of any undisclosed liens, claims, or legal disputes that could affect the transaction.

This document is crucial for protecting buyers, lenders, and title companies by ensuring that there are no legal encumbrances or hidden ownership disputes.

This guide will cover everything you need to know about an Affidavit of Title, including its importance, key components, how to draft one, common challenges, and its advantages.

Table of Contents

• What is an Affidavit of Title?
• Why is an Affidavit of Title Important?
• Key Components of an Affidavit of Title
• How to Draft an Affidavit of Title
• Common Challenges and How to Address Them
• Who Needs an Affidavit of Title?
• When Should an Affidavit of Title Be Used?
• Advantages of an Affidavit of Title
• FAQs About Affidavits of Title

What is an Affidavit of Title?

An Affidavit of Title is a sworn legal statement made by a property seller before transferring ownership. This document verifies that:

• The seller is the lawful owner of the property.
• The property is free of undisclosed liens or encumbrances.
• There are no pending legal disputes affecting ownership.
• The seller is not in bankruptcy (if applicable).

A notary public typically witnesses the signing of this document, making it legally binding in real estate transactions.

Why is an Affidavit of Title Important?

Confirms Legal Ownership

Ensures the seller has full rights to transfer the property.

Protects Buyers from Legal Issues

Verifies that there are no outstanding legal claims, debts, or liens.

Required by Title Companies and Lenders

Most mortgage lenders and title companies require this document before finalizing the sale.

Prevents Fraudulent Transactions

Protects buyers from unknowingly purchasing a disputed or encumbered property.

Ensures a Smooth Real Estate Closing

Minimizes delays by confirming clear title status before the property is transferred.

Key Components of an Affidavit of Title

Seller’s Information

• Full legal name and contact details of the property owner.

Property Description

• Full address and legal description of the property.

Statement of Ownership

• Declaration that the seller is the lawful owner of the property.

Confirmation of No Liens or Claims

• A sworn statement that the property is free of undisclosed liens, debts, or ownership disputes.

Bankruptcy Status

• If applicable, a statement confirming that the seller is not currently in bankruptcy.

Acknowledgment of Pending Legal Matters

• Declaration that there are no ongoing lawsuits or claims affecting the property.

Seller’s Signature and Notary Seal

• The document must be signed by the seller and notarized for legal validity.

How to Draft an Affidavit of Title

Step 1: Gather Property and Seller Information

• Include the full name of the seller and legal property description.

Step 2: Verify Title and Encumbrances

• Check with the county recorder’s office or title company to confirm there are no undisclosed liens or claims.

Step 3: Draft the Affidavit Statement

• Clearly state ownership details, bankruptcy status, and confirmation of a clean title.

Step 4: Sign and Notarize the Document

• The seller must sign the affidavit in front of a notary public.

Step 5: Provide the Affidavit at Closing

• Submit the signed and notarized affidavit to the title company or lender before closing.

Common Challenges and How to Address Them

Undisclosed Liens or Legal Claims

• Solution: Conduct a title search before drafting the affidavit.

Seller is in Bankruptcy

• Solution: Consult a real estate attorney before proceeding with the sale.

Errors in Property Description

• Solution: Verify details with the county property records or title company.

Buyer Disputes Seller’s Claims

• Solution: Provide supporting documents (e.g., title report, mortgage records) to verify ownership.

Who Needs an Affidavit of Title?

• Property sellers transferring real estate ownership.
• Title companies verifying title status before closing.
• Real estate attorneys ensuring compliance with property laws.
• Mortgage lenders confirming ownership before approving loans.

When Should an Affidavit of Title Be Used?

• Before the final closing of a real estate transaction.
• When selling a property with a mortgage or previous liens.
• If a buyer requests legal proof of clear title.

Advantages of an Affidavit of Title

• Prevents fraudulent real estate transactions.
• Ensures a legally binding transfer of ownership.
• Protects buyers from future title disputes.
• Required by lenders and title companies for loan approvals.

FAQs About Affidavits of Title

Is an Affidavit of Title required in all real estate transactions?

It depends on state laws and lender requirements, but it is commonly required in real estate closings.

Who prepares an Affidavit of Title?

The seller or their real estate attorney usually drafts the affidavit.

Can a buyer refuse to accept an Affidavit of Title?

Yes, if there are inconsistencies, errors, or concerns about undisclosed property issues.

What happens if an Affidavit of Title contains false information?

The seller can face legal consequences, including lawsuits and financial penalties.

An Affidavit of Title is an essential document in real estate transactions, ensuring a clear and legally sound property transfer. Download our free template today to create a legally compliant affidavit!

Affidavit of Title Sample