Full title guarantee: Difference between revisions

{{a|security|}}An expression [[Mediocre lawyer|financial lawyers]] toss casually about, without much of a backward glance, but which has a specific meaning under the [[Law of Property (Miscellaneous Provisions) Act 1994]]. Under section 1 of that act, there are two types of [[covenant]] a chap can give when transferring property: by “[[limited title guarantee|''limited'' title guarantee]]”, and by “[[full title guarantee|''full'' title guarantee]]”:

:''(1): In an instrument effecting or purporting to effect a disposition of property<ref>defined as including a “[[thing in action]], and any interest in real or personal property”</ref> there shall be implied on the part of the person making the disposition, whether or not the disposition is for valuable [[consideration]], such of the covenants specified in sections 2 to 5 as are applicable to the disposition. <br>

:''(2) Of those sections— <br>

::''(a) sections 2, 3(1) and (2), 4 and 5 apply where dispositions are expressed to be made with [[full title guarantee]]; and <br>

::''(b) sections 2, 3(3), 4 and 5 apply where dispositions are expressed to be made with [[limited title guarantee]].

That latter representation makes “[[full title guarantee]]” an odd thing to say in the context of cleared [[Security|securities]], where interests are transferred subject to [[clearing system]] [[lien|liens]] (and actual legal title is held by the [[bearer security|bearer]] of a [[global security]]). It’s also not really much to do with {{tag|guarantee}}s generally, which are a topic of no small gruelling exactitude, should that be your kind of thing.