Collateral Warranty

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Collateral Warranty

In real estate transactions, an assurance or guaranty of title made by the holder of the title to the person to whom the property is conveyed.

Such a Warranty is not the same as a Covenant running with the land, since it runs only to a particular convenantee who accepts the land from the holder of title and not to each successive owner of the land upon taking ownership of it.

COLLATERAL WARRANTY, contracts, descent. Where the heir's title to the land neither was, nor could have been, derived from the warranting ancestor; and yet barred the heir from ever claiming the land, and also imposed upon him the same obligation of giving the warrantee other lands, in case of eviction, as if the warranty were lineal, provided the heir had assets. 4 Cruise, Real Prop. 436.
     2. The doctrine of collateral warranty, is, according to Justice Story, one of the most unjust, oppressive and indefensible, in the whole range of the common law. 1 Sumn. R. 262.
     3. By the statute of 4 & 5 Anne, c. 16, Sec. 21, all collateral warranties of any land to be made after a certain day, by any ancestor who has no estate of inheritance in possession in the same, were made void against the heir. This Statute has been reenacted in New. York; 4 Kent, Com. 460, 3d ed.; and in New Jersey. 3 Halst. R. 106. It has been adopted and is in force in Rhode Island; 1 Sumn. R. 235; and in Delaware. Harring. R. 50. In Kentucky and Virginia, it seems that collateral warranty binds the heir to the extent of assets descended. 1 Dana, R. 59. In Pennsylvania, collateral warranty of the ancestor, with sufficient real assets descending to the heirs, bars them from recovering the lands warranted. 4 Dall. R. 168; 2 Yeates, R. 509; 9 S. & R. 275. See 1 Sumn. 262; 3 Halst. 106; Harring. 50; 3 Rand. 549; 9 S. & R. 275; 4 Dall. 168; 2 Yeates, 509; 1 Dana, 50.

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Deposits and Guarantees required: The Contracting Entity reserves the right to require guarantees, bonds, collateral warranties and other forms of security as appropriate.
Documents including collateral warranties to third parties, sub-contractor warranties, performance bonds and parent company guarantees are all items now required by an employer at the beginning of a contract.
Deposits and Guarantees required: The University reserves the right to require guarantees (Which may include Parent Company Guarantee), bonds, collateral warranties and other forms of security as appropriate.
COLLATERAL warranties can make a multi-million pound difference to property developers.
Deposits and Guarantees required: Bonds, Parent Company guarantee and collateral warranties may be required and will be specified in the tender.
THOSE of us involved in the construction industry will be used to dealing with a collateral warranties on a day-to-day basis.
He has extensive experience in advising funders, developers, housebuilders, main contractors, sub-contractors and consultants on building and engineering contracts, appointments, framework agreements, collateral warranties, bonds and guarantees.
Deposits and Guarantees required: Parent company guarantees, bonds and/ or collateral warranties from the principal as well as sub-contractors may be required.
I've also acted for funders financing two of these projects, which involved drafting bespoke appointments for the professional team, as well as collateral warranties in favour of other interested parties.
Deposits and Guarantees required: The Authority reserves the right to require deposits, parent company guarantees, collateral warranties, bonds, or other forms of appropriate security.
Collateral warranties solve these problems by making a contract between developer and consultants, funder and consultants and funder and main contractor.
COLLATERAL warranties can make a big difference to property developers, investors and tenants.