§ 7507 Transferor Document Warranties

Commercial Code·California

AI SummaryVerified

Key Takeaways

•If you sell or transfer a document that proves ownership (like a car title), you promise the buyer it's real.
•You also promise you don’t know anything bad about it that would make it worthless.
•You promise you have the right to sell or transfer it and that it fully gives ownership of the item (like a car).

Example

You sell a car and give the buyer the car title.

You promise the title is real, you don’t know of any problems with it, and you have the right to sell the car.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 7507 Transferor Document Warranties

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that: (1) the document is genuine; (2) the transferor does not have knowledge of any fact that would impair the document’s validity or worth; and (3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents. (Repealed and added by Stats. 2006, Ch. 254, Sec. 49. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

document of title warranties negotiation or delivery rightful and fully effective

References

Official text at leginfo.legislature.ca.gov
California Legislature. Commercial Code. Section 7507.

Key Takeaways

Example

Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

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