Which statement best describes the primary purpose of an Affidavit of Title in closing a real estate transaction?

Which statement best describes the primary purpose of an Affidavit of Title in closing a real estate transaction?

• A. It provides a sworn statement about title status to support closing.
• B. It transfers title to the buyer.
• C. It records the mortgage with the county.
• D. It insures the title.

Answer: (A)

The main idea is that an Affidavit of Title is a sworn statement about the property's title status provided to support the closing. It is typically given by the seller and serves to reassure the buyer and the lender that there are no undisclosed title defects or encumbrances that could threaten the transfer of clear title. The affidavit affirms facts such as current ownership, absence of undisclosed liens or judgments, and that any known issues have been disclosed and will be addressed as part of the closing. This sworn statement helps the title company issue or tailor a title policy and remove or limit certain policy exceptions, facilitating a smooth closing. It is not the document that transfers ownership (that’s the deed), nor does it itself record a mortgage (recordation is handled by the lender or closing agent) or insure the title (title insurance is a separate policy issued by a title company).

The main idea is that an Affidavit of Title is a sworn statement about the property's title status provided to support the closing. It is typically given by the seller and serves to reassure the buyer and the lender that there are no undisclosed title defects or encumbrances that could threaten the transfer of clear title. The affidavit affirms facts such as current ownership, absence of undisclosed liens or judgments, and that any known issues have been disclosed and will be addressed as part of the closing. This sworn statement helps the title company issue or tailor a title policy and remove or limit certain policy exceptions, facilitating a smooth closing.

It is not the document that transfers ownership (that’s the deed), nor does it itself record a mortgage (recordation is handled by the lender or closing agent) or insure the title (title insurance is a separate policy issued by a title company).