The Owner Affidavit and Indemnity Agreement serves as a critical risk management tool in U.S. real estate transactions. This document is typically required by title insurance companies before issuing title insurance policies and is often used in property sales, refinancing, or other real estate transactions. It provides assurance to interested parties about the property's status and creates legal obligations for the owner to stand behind their statements. The agreement helps identify and address potential title issues while providing protection through indemnification provisions.
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1. Parties: Identification of property owner(s) and other relevant parties making and receiving the affidavit
2. Background: Context of the affidavit, property details, and purpose of the agreement
3. Definitions: Key terms used throughout the document including Property, Improvements, Claims, Liens, etc.
4. Owner Representations: Sworn statements regarding property ownership, absence of liens, property status, and other material facts
5. Indemnification Provisions: Terms of owner's indemnification obligations, scope of protection, and duration of indemnity
6. Execution: Signature blocks, notary acknowledgment, and witness requirements
1. Construction Status: Details about ongoing or recent construction work, including completion dates and payment status
2. Tenant Status: Information about current tenants, leases, and occupancy rights
3. Environmental Matters: Statements regarding environmental conditions, hazards, and compliance
1. Schedule A - Property Description: Legal description of the subject property and its boundaries
2. Schedule B - Contractor List: List of contractors who performed work on the property within relevant timeframe
3. Schedule C - Lien Waivers: Copies of lien waivers from contractors and subcontractors
4. Schedule D - Title Exceptions: List of known title exceptions, encumbrances, and permitted liens
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