In legal terms, a paramount title is the highest form of title available for a real estate purchase, lease, or other contract. It means that no claim on the property can be superior to the one that was granted in the Title. This is the most secure form of title and is legally binding between the grantor and the grantee, whether the owner or lessor or lessee.
Why Is Paramount Title So Important?
Paramount title is important in protecting the buyers interests. It can protect from any future claims against the property, such as liens, mortgages, or encumbrances. Another important benefit of paramount title is that it clearly defines the parties’ rights and responsibilities, so disputes can be avoided down the line.
When Is Paramount Title Necessary?
Paramount title is required in most real estate transactions, from full purchases to leases and contracts. Even in simple contracts, paramount title can provide additional security. For example, if you are renting an apartment, paramount title ensures that any future claims against the rental property do not involve the tenant.
Conclusion
Paramount title provides added security and peace of mind in any transaction, from real estate transactions to rental agreements and contracts. It is the highest form of title and ensures that any future claims against the property do not involve the grantee or lessee. Paramount title ensures that the rights and responsibilities of the parties involved are clearly defined and can help avoid disputes down the line.