In Texas, when can a buyer enforce a warranty of title?

A buyer can enforce a warranty of title when the seller breaches this warranty, specifically by transferring goods that are encumbered, meaning there are liens, mortgages, or claims against the goods. This warranty guarantees that the seller has the legal right to sell the goods and that the goods are free from third-party claims. If the seller fails to meet this obligation by selling goods that are not free of encumbrances, the buyer is entitled to seek remedies for that breach.

In this context, it's important to understand why simply making a statement about the goods being free from encumbrances is not sufficient for enforcement. The warranty of title exists inherently in sales; it is not dependent on explicit statements unless those statements create conditions for other warranties. Moreover, the requirement to pay the full purchase price before enforcing the warranty is not accurate; a buyer can enforce their rights upon discovering the breach of warranty regardless of payment status. Therefore, the ability to enforce the warranty of title hinges on the actual breach of the warranty itself, thus making the correct choice clear.