Legal Definitions - transfer warranty

A transfer warranty is a type of warranty that is made by a seller or transferor of property to the buyer or transferee. It is a promise that the seller has the right to sell the property and that there are no liens or other encumbrances on the property beyond those that the buyer is aware of at the time of the sale.

For example, if John sells his car to Jane and gives her a transfer warranty, he is promising that he has the right to sell the car and that there are no liens or other encumbrances on the car beyond those that Jane is aware of at the time of the sale.

This type of warranty is important because it protects the buyer from any legal issues that may arise from the sale of the property. If the seller breaches the warranty, the buyer may be entitled to compensation or other remedies.