According to the Law of Property Act (Miscellaneous Provisions) Act, 1994, the seller’s capacity need not be mentioned in the contract. Now it is for the seller to decide whether he should give a full guarantee or a limited guarantee or no title guarantee at all. The importance of the title guarantee is that covenants for title on behalf of the seller are implied in the purchase deed. A limited title guarantee will imply less extensive covenants for the title than a full guarantee title and no guarantee will imply none.
