They want to make sure that this couple has no interest in the property that will impact the Buyer's clear title. The other alternative is to pay for Title Insurance to protect the Buyer's title.
The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of California. Responses are based solely on California law unless stated otherwise.
Title Insurance is a private business and like all insurance companies they want to minimize the risk of having to pay out on any claims. Since the previous transfer was without insurance it is inherently more risky for the new title insurance company that there could be some mistake or fraud involved in the previous transfer. That risk is significantluy reduced if the previous owners/partners sign an affidavit verifying that they transferred title to you.
Richard A. Rodgers, Esq.
As stated in the AVVO.COM Terms and Conditions of Use, this answer is not intended as legal advice, and no attorney-client relationship or privilige is created by this response.