Is a Title Guarantee legally binding?

Yes. A written guarantee is a contract; enforceability depends on proper execution, accurate party names, clear property description, and conformity with state recording and notary requirements.

Can the agreement be signed electronically?

Generally yes under ESIGN (15 U.S.C. ch. 96) and UETA where adopted, provided parties consent and the electronic process captures intent, attribution, and retention.

When is notarization required?

Notarization is required for many deeds and recorded instruments; check county recorder rules and state notary statutes before relying on an unsigned or non-notarized guarantee.

What if the property description is wrong?

An incorrect legal description can prevent recording and create title ambiguity; prepare corrective instruments promptly and consult title counsel to avoid priority loss.

How long should records be kept?

Retain signed agreements for the active term plus a multi-year post-termination period; follow IRS (IRC §6501(a)) and HIPAA rules where applicable.

Who should review the agreement before signing?

Lender counsel, closing agent, and an attorney familiar with local recording and title practice should review to confirm remedy language and exceptions.

Electronic Signature
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Legal
Title Guarantee Agreement

Title Guarantee Agreement

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TITLE GUARANTEE AGREEMENT

This Title Guarantee Agreement (the Agreement) is made as of by and between Guarantor Name: , an entity organized under the laws of with principal place of business at ; and Client Name: , an entity organized under the laws of with principal place of business at . Each of the foregoing is a Party and collectively the Parties.

Recitals

WHEREAS, Client has an ownership interest in the real property described as (the Property); and

WHEREAS, Client desires assurance that the title to the Property is free from certain defects, encumbrances and claims and has requested that Guarantor provide a title guarantee in the form and subject to the terms set forth in this Agreement; and

WHEREAS, Guarantor is willing to provide such guarantee subject to the terms, limitations and exceptions contained in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, receipt of which is hereby acknowledged, the Parties agree as follows:

1. Definitions

1.1 Property means the real property and improvements located at the address noted above and more particularly described in the Legal Description field below.

Legal Description

1.2 Guaranteed Amount means the maximum aggregate monetary liability of Guarantor under this Agreement, consisting of the principal sum of together with costs as provided in this Agreement.

2. Guarantee

2.1 Scope of Guarantee. Subject to the terms, exclusions and conditions of this Agreement, Guarantor unconditionally guarantees that, as of the Effective Date, Client holds good and marketable fee title to the Property free and clear of all liens, encumbrances, claims and defects other than those matters set forth in the Exceptions field below.

Exceptions to Guarantee (if any)

2.2 Guarantor Obligations. If, during the term of this Agreement, Client gives timely written notice to Guarantor of a Claim of Title (as defined below), Guarantor shall, at its election, either (a) procure the removal or cure of the defect at Guarantor's expense, including the defense of any action to quiet title, or (b) pay to Client the actual Loss sustained by Client, up to the Guaranteed Amount. For these purposes, Claim of Title means a claim asserted by a third party attacking Client’s title to the Property.

2.3 Claim Procedure. Client must provide written notice to Guarantor within 30 days after actual knowledge of a Claim of Title and must furnish reasonably available documents supporting the Claim and any request for payment. Guarantor shall have the right, at its expense, to assume the defense of any Claim and to employ counsel of its choice. Failure by Client to give prompt written notice shall not relieve Guarantor of liability except to the extent Guarantor is materially prejudiced by the delay.

3. Exclusions

3.1 Except as expressly provided in this Agreement, Guarantor does not guarantee and shall have no liability for: (a) matters of public record not disclosed to Guarantor prior to the Effective Date; (b) defects arising from Client’s acts, omissions or conveyances subsequent to the Effective Date; (c) zoning, land use, environmental conditions, survey matters, or rights of parties in possession unless such matters constitute a title defect expressly within the scope of this Agreement; (d) real property taxes and assessments not yet due and payable; and (e) punitive, exemplary or consequential damages, including lost profits.

4. Representations and Warranties

4.1 Client represents and warrants that: (a) it has full right, power and authority to enter into and perform this Agreement; (b) as of the Effective Date there are no mortgages, liens or other encumbrances affecting the Property except those disclosed to Guarantor in writing and listed in the Exceptions field; and (c) all information provided to Guarantor relevant to title has been true and complete to Client's knowledge.

5. Indemnity and Subrogation

5.1 Indemnity. Client shall indemnify and hold harmless Guarantor from and against any liability, costs, claims or expenses (including reasonable attorneys' fees) arising from Client's breach of this Agreement, Client's misrepresentations, or acts or omissions of Client that give rise to a Claim of Title and that are excluded under Section 3.

5.2 Subrogation. Upon payment of Loss under this Agreement, Guarantor shall be subrogated to all rights of Client against third parties with respect to the paid matter; Client shall execute such documents as reasonably requested to effectuate subrogation rights.

6. Limitation of Liability

6.1 The aggregate liability of Guarantor for all claims under this Agreement shall not exceed the Guaranteed Amount. Guarantor shall not be liable for consequential, special, incidental or punitive damages. This limitation is independent of any other limit or exclusion in this Agreement and shall apply to all causes of action.

7. Notices

7.1 All notices, demands or other communications required or permitted under this Agreement shall be in writing and delivered by hand, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses provided below or to such other address as a Party may designate in writing pursuant to this Section.

Guarantor Notice Address Client Notice Address

8. Term and Termination; Survival

8.1 Term. This Agreement shall remain in full force and effect until the Guaranteed Amount is exhausted or until terminated by mutual written agreement of the Parties. Termination shall not affect obligations with respect to Claims arising prior to termination.

8.2 Survival. Sections 2 (Guarantee), 3 (Exclusions), 5 (Indemnity and Subrogation), 6 (Limitation of Liability), 7 (Notices), 9 (Governing Law) and 10 (Entire Agreement) shall survive termination or expiration of this Agreement.

9. Governing Law; Venue

9.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles.

9.2 Venue. The Parties submit to the exclusive jurisdiction of the state and federal courts located in the county of the state identified above for resolution of disputes arising under this Agreement.

10. Entire Agreement; Amendments; Severability; Counterparts

10.1 Entire Agreement. This Agreement, together with any schedules and attachments hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and negotiations, whether written or oral.

10.2 Amendments and Waiver. No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. No waiver of any breach shall constitute a waiver of any subsequent breach.

10.3 Severability. If any provision of this Agreement is held unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

11. Miscellaneous

11.1 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Client may not assign this Agreement without Guarantor's prior written consent.

11.2 Attorneys' Fees. The prevailing party in any action to enforce this Agreement shall be entitled to recover reasonable attorneys' fees and costs from the non-prevailing party, subject to any limitation set forth herein.

Client Printed Name:

By:

Date:

Guarantor Printed Name:

By:

Date:

What a Title Guarantee Agreement Is and when it applies

A Title Guarantee Agreement is a written promise, usually issued by a title company or seller, that a property's title is free of undisclosed defects, liens, or claims except as noted. It documents the results of a title search, identifies exceptions, and assigns responsibility for correcting covered defects or compensating the beneficiary. The agreement is commonly used in real estate transactions, refinances, and escrow closings to provide assurance to buyers, lenders, and other transferees about the status of ownership and recorded encumbrances.

Why parties rely on a Title Guarantee Agreement

The agreement reduces transaction risk by documenting title condition, allocating responsibility for defects, and creating a contractual remedy if covered title issues arise; it supports lender underwriting and buyer confidence without requiring a full title insurance policy in every case.

Typical users and roles involved

The Title Guarantee Agreement is used by multiple transaction parties to record title condition, allocate liability, and support closing requirements.

Buyers and transferees who need contractual assurance about chain of title and encumbrances.
Lenders and mortgagees seeking confirmation of priority and protection for loan security interests.
Title companies, escrow agents, and closing attorneys preparing search results and drafting exceptions.

Parties who need a compact, contract-based assurance about title (versus or in addition to title insurance) commonly execute this agreement during contract negotiation or closing.

Core elements included in a professional Title Guarantee Agreement

A complete agreement clearly states the parties, describes the property, lists identified exceptions, defines the guarantee scope, sets remedies, and records the effective date and duration.

Parties

Names of grantor, guarantee beneficiary, and any agent or title examiner involved in the transaction.

Property Description

Legal description or metes-and-bounds description sufficient for county recording and tax parcel identification.

Search Findings

Summary of recorded liens, easements, covenants, and encumbrances found during the title search.

Exceptions

Explicitly listed exceptions that the guarantor will not cover or that limit the guarantee's scope.

Remedies

Remedy options such as correction, indemnity, or monetary reimbursement for covered title defects.

Effective Term

Date the guarantee starts and any expiration or survival language tied to closing or recording.

How to complete a Title Guarantee Agreement step by step

Follow a structured sequence to assemble search results, draft the agreement, obtain approvals, and record where required.

01

Prepare search: Run or obtain a current title search and summarize recorded matters.
02

Draft agreement: Populate parties, property description, exceptions, scope, and remedies.
03

Review with counsel: Have lender and closing attorney confirm wording and enforceability.
04

Execute and notarize: Sign, notarize or perform RON if permitted, then distribute and record where applicable.

Configuring an online completion workflow

Set up fields, signer order, and authentication to match your closing process before sending the agreement for signature.

Field	Configuration
Signature fields	Assign to specific signers with required date stamps
Conditional fields	Use conditional visibility for exceptions or rider attachments
Authentication	Choose email, SMS code, or KBA depending on risk
Recording workflow	Automate routing to escrow and county recorder after signing

Digital signing and technical needs for eSubmission

Confirm platform compatibility, signer authentication, and accepted file formats before e-signing or recording.

Integrations: Salesforce, NetSuite, Microsoft 365 and cloud storage
File formats: PDF, DOCX accepted; produce final signed PDF
Authentication: Email link, SMS code, or stronger verification

Use a platform that supports audit trails, notarization/RON where necessary, and secure storage to meet legal and title company requirements.

Where to send, file, and who receives copies

A clear routing plan prevents delays: distribute signed copies to parties, escrow, lender, and recorder as required.

Escrow / Closing: Provide an executed original for closing file and escrow disbursement.
Lender delivery: Send beneficiary-signed copy to the mortgagee for underwriting.
County recorder: Record original where state/local law requires recording.
Title company: Retain a copy with the title file and claims documentation.

Typical timing and deadlines to track

Track effective dates, recording windows, and any lender or closing deadlines to maintain priority and compliance.

Effective Date entry:

Set to closing date or agreed contract date

Recording window:

Record promptly per county rules to preserve priority

Lender conditions:

Meet lender's pre-closing document delivery deadlines

Post-closing corrections:

Allow time for cure or corrective instruments to be prepared

Retention start:

Begin retention count from effective or recording date

Key milestones in the Title Guarantee process

Milestones help coordinate search, drafting, approvals, execution, recording, and post-closing follow-up.

01

Order title search

Obtain current search to identify encumbrances before drafting.

02

Draft and review

Prepare agreement and circulate for lender and counsel review.

03

Execute and notarize

Complete signatures and notarization or RON if permitted.

04

Record and file

Record original with county recorder and distribute copies.

Representative examples of real-world use

Sample scenarios illustrate how a Title Guarantee Agreement is used in closing, lending, and claim resolution contexts.

Martin Properties

Martin Properties used a guarantee to document search results before closing

The agreement allocated responsibility for a discovered lien
This allowed the sale to close while the seller pursued clearing the lien post-closing, avoiding a delay in funding.

Fertility Centers of Illinois

A healthcare client used a guarantee for property transfer tied to a clinic relocation

The lender required clear title confirmation
The agreement accompanied lender conditions, streamlined underwriting, and preserved the closing schedule while minor encumbrances were cured.

Common pitfalls when preparing a Title Guarantee Agreement

Inaccurate legal description leading to recording rejection or ambiguous property identification and title defects.
Using informal names or abbreviations for parties that do not match recorded documents, creating enforceability disputes.
Failing to list or explain exceptions clearly, which can create coverage gaps and later disagreements.
Skipping notarization or RON requirements where state law or lender policy specifically requires them.

Key risks and potential consequences of errors

Loss of Priority: Lien priority issues

Recording Rejection: Document returned/unrecorded

Indemnity Exposure: Monetary liability for defects

Loan Funding Delay: Mortgage closing postponed

Invalid Guarantee: Enforceability challenges

Tax Consequences: Recordkeeping penalty risk

Essential data points and controls to include

Identity: Signer verification required

Audit trail: Timestamp and IP logging

Encryption: TLS 1.2/1.3 and AES-256

Access control: Role-based permissions

BAA availability: HIPAA BAA if PHI present

Retention policy: Defined retention schedule

eSignature pricing and feature comparison for executing agreements

Pricing and basic features vary across eSignature vendors; signNow appears first to show competitive entry pricing and feature parity for core signing and compliance needs.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Yes (varies)	Yes (varies)	Yes (varies)	Yes (varies)
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about Title Guarantee Agreements

Answers to typical questions about enforceability, notarization, recording, and digital signing for title guarantees.

Need help? Contact support

Is a Title Guarantee legally binding?
Yes. A written guarantee is a contract; enforceability depends on proper execution, accurate party names, clear property description, and conformity with state recording and notary requirements.
Can the agreement be signed electronically?
Generally yes under ESIGN (15 U.S.C. ch. 96) and UETA where adopted, provided parties consent and the electronic process captures intent, attribution, and retention.
When is notarization required?
Notarization is required for many deeds and recorded instruments; check county recorder rules and state notary statutes before relying on an unsigned or non-notarized guarantee.
What if the property description is wrong?
An incorrect legal description can prevent recording and create title ambiguity; prepare corrective instruments promptly and consult title counsel to avoid priority loss.
How long should records be kept?
Retain signed agreements for the active term plus a multi-year post-termination period; follow IRS (IRC §6501(a)) and HIPAA rules where applicable.
Who should review the agreement before signing?
Lender counsel, closing agent, and an attorney familiar with local recording and title practice should review to confirm remedy language and exceptions.

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