Legal Definitions - common assurance

A common assurance refers to a legal document or instrument that is regularly used to transfer, confirm, or secure rights related to property, particularly real estate. These documents provide formal evidence of a transaction or a claim to ownership, ensuring clarity and certainty regarding property interests. The term highlights the established and widely accepted methods for documenting property dealings.

• Example 1: Purchasing a Home

  When someone buys a house, the seller signs a deed, such as a warranty deed, which is then recorded with the local government. This deed formally transfers legal ownership from the seller to the buyer.

  This deed serves as a common assurance because it is the standard legal document that unequivocally proves the buyer's new ownership of the property. It assures the buyer of their rights and provides public record of the transfer, making their claim to the property legally sound.

• Example 2: Establishing a Right-of-Way

  Imagine a situation where a property owner grants their neighbor the legal right to drive across a specific portion of their land to reach a public road. This right is typically formalized through an easement agreement, which is a written document detailing the terms and scope of this access.

  The easement agreement acts as a common assurance because it legally establishes and secures the neighbor's right to use a part of the property for a specific purpose. It provides clear, documented proof of this property interest, assuring both parties of their respective rights and obligations.

• Example 3: Securing a Business Loan with Property

  A small business owner might take out a loan from a bank to expand their operations, offering their commercial building as collateral. To formalize this, they would sign a mortgage agreement (or a deed of trust in some jurisdictions) that legally pledges the property as security for the loan.

  This mortgage document is a common assurance because it legally records the bank's interest in the property. It assures the lender that they have a legal claim against the property if the business owner defaults on the loan, providing clear, documented evidence of this financial arrangement tied to the real estate.