Title and Ownership Representations
The seller will provide clear warranties regarding legal ownership and title, which typically include:
- That the seller holds absolute, marketable, and unencumbered title to the property
- That the land is free from all liens, charges, mortgages, and third-party claims
- That the seller has full legal authority to sell the property without needing further consents
- That all prior transactions, transfers, and registrations related to the land are lawful and properly recorded
These representations protect the buyer from future title disputes or ownership challenges.
Zoning, Compliance, and Environmental Warranties
The PSA will also include representations ensuring the property’s legal use and regulatory compliance, such as:
- That the land is zoned or eligible for industrial use as per the local development plan or CLU approval
- That there are no pending notices, violations, or legal proceedings from planning authorities or environmental regulators
- That the property is not within protected, reserved, or environmentally restricted zones
- That no hazardous substances have been stored or disposed of on-site unless expressly disclosed
These warranties ensure the land is suitable for the buyer’s intended use and meets statutory obligations.
Financial, Tax, and Possession-Related Warranties
The seller will make declarations regarding the financial and physical status of the property, including:
- All property taxes, land revenue, and statutory charges have been paid up to the closing date
- There are no pending litigations, attachments, or acquisitions against the property
- The seller will deliver vacant, peaceful possession of the land on the date of execution
- No part of the property is under oral agreements, leases, or unauthorized occupation
These representations are enforceable under the agreement and serve as a foundation for the buyer’s legal remedies in case of breach.