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: Hs2 ltd reserves the right to require guarantees, Bonds, Collateral warranties (potentially including the grant of step-in rights) and other forms of security as appropriate to be specified in the procurement documents to be made available at the invitation to tender stage.
For example, you may need to cater for novation of certain consultants to the contractor under a design and build route and you may also need to consider whether the provision of collateral warranties to third parties such as funders and tenants will be required, as discussed further below in more detail.
Samy disclosed that the Minister of Investment Dalia Khorshid sent a collateral warranties executive regulation draft to the State Council Court for review, to make sure that the regulation is compatible with the law and its wording.
Such collateral warranties enable an innocent party, caught by the decennial liability regime, to seek to recover the loss under the terms of the warranty from that party who actually is at fault.
deposits and guarantees required: Tideway reserves the right to require guarantees, Bonds, Collateral warranties (potentially including the grant of step-in rights) and other forms of security as appropriate to be specified in the procurement documents to be made available at itt stage.
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: HS2 Ltd reserves the right to require guarantees, bonds, collateral warranties (including the grant of step-in rights to Subcontract Works Packages) and other forms of security as appropriate to be specified in the Procurement Documents to be made available at ITT stage.
COLLATERAL warranties can make a multi-million pound difference to property developers.
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.
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 Contracting Entity reserves the right to require guarantees, bonds, collateral warranties and other forms of security as appropriate.