I need a dumbed down version on these two phrases…
“The seller acknowledges that the goods are free from any security interest or other lien encumbrance.”
“The seller acknowledges that there are no outstanding titles or claims of title in the goods.”
I feel like I’m 70% understanding these two phrases and I even Google them and Chatgpt them, yet I’m still not understanding these two phrases. I need to know the ins and outs of these phrases.
I’m selling to a customer.
In: Other
Sometimes you get a loan and the bank says “sure, but don’t sell your stuff. If you stop paying my loan, I will come take the stuff and sell it to pay the debt”. That stuff is encumbered.
If you are selling trade goods (IE stuff you made, or stuff you bought with the intent of selling) you are probably fine. If you are selling a car with an outstanding loan, a house with a mortgage, etc. you may need to get a payoff letter or something like it.
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