Owner's Affidavit - Residential (AC May 2024)

The Owner’s Affidavit standard requirement for all transactions: refinance and purchase, reads as follows: Satisfactory Old Republic Owner’s Affidavit as to mechanic’s liens, possession, gap coverage, etc. Note: If construction has been performed on the premises within the last 123 days, additional requirements and/or exceptions may be made.

Obtaining a signed residential Owner’s Affidavit along with the purchase of title insurance offers both YOU, the settlement agent, and the buyer peace of mind that all has been done to protect the integrity of the transaction. The below nine items, should they occur and not be addressed before the settlement, can result in a claim or a complete failure of title. Auditor comments are as noted after each testament.

Remember this affidavit must be fully Notarized as it is a legal document. During audits we note that the notary acknowledgement is not completed. We also find that the affidavit is not completed in its entirety with the owner answering all questions i.e., questions 2, 3, and 9. During the closing, slow down and give the borrower time to fully address each item.

1. As to Mechanic’s Liens: At no time within 121 days of the date hereof has any work, services, or labor done, or any fixtures, apparatus or material been furnished in connection with, or to the said premises, except such material, fixtures, work, apparatus, labor or services as have been fully and completely paid for ... (A party not paid by the seller, can file a lien for payment against the property and this will cause a claim and affects title for the new buyer.)

2. As to contracts and conveyances: No agreement or contract for conveyance, or deed, conveyance, written lease, or writing whatsoever, is in existence, adversely affecting … (A seller could have entered a contract with a different party who has the right to buy the property, and this would adversely affect title for the new buyer.)

3. As to possession: No parties are in possession of said premises other than the undersigned. (If one is not in possession of the property, it cannot be sold. Squatters for example are in possession.)

4. As to Judgments: No judgment or decree has been entered in any court of this State of the United States against said Affiant and which remains unsatisfied. (A judgement might have been entered against the owner/seller since the last search for such. This would cause a claim by the creditor.)

5. As to Bankruptcy: No proceedings in bankruptcy have ever been instituted by or against Affiant in any court, or before any officer of any state. (If the party to the transaction is in Bankruptcy, meaning it has been filed, but no final disposition or order has been entered, assets are no longer available to be sold without permission of the court. A failure of title will occur.)

Note: Refer to the PACER requirement on the new Sample Commitment.

6. As to marital status: I am currently MARRIED / SINGLE (must mark one, as applicable)

In the event the undersigned acquired the Property as tenants by the entirety with the right of survivorship, each was married to the other at the time of acquiring the Property and is so married as of the date hereof, and they have been married to each other continuously and without interruption since acquiring the Property. (Marital status and a change in such can determine whether a judgment against one of the parties, which did not previously attach to the property, might now attach.)

7. As to taxes and assessments: THAT there are no outstanding unpaid or delinquent real estate taxes or assessments against said premises; further, that there are no unpaid or delinquent water or sewer service charges against said premises. (This would have the potential, of being a lien on the property to the new buyer, and a claim.)

Also, that the undersigned has not received notice, nor know of any recent future planned improvements …

Additionally, there are no unpaid homeowners, condominium, or other special assessments. (A special assessment known only to the seller, and not disclosed will cause a claim.)

8. If an entity is the owner, the entity (A - D) … (All of the above could impact the buyer and the marketability of the title.)

Note: Commercial property transactions require the use of the: Commercial Owner/Seller Affidavit

9. Gap Coverage: Owner, recognizing that funding may occur prior to the Deed, Deed of Trust and/or Mortgage being filed for record in the appropriate Clerk's Office; agrees that in consideration of Underwriter issuing said policy or policies of title insurance, without exception to any matters which may arise between the effective date of the commitment for title insurance and the date the documents creating the interest being insured are filed for record, (which matters may constitute an encumbrance on or affect the title) … (If funding does occur before recordation, and an item affecting title is discovered, the seller is agreeing to both fix the issue AND hold harmless the agency and Old Republic for failure to address such matter before disbursement of proceeds to the seller.)     

Please contact underwriting counsels at VAUnderwriting@OldRepublicTitle.com for specific questions regarding the Old Republic Owner Affidavit.