Automobile Fraud: 9.2.2.1 Nature of Warranty of Title
The UCC provides that implicit in every sale is a warranty of title. Specifically, under UCC § 2-312(1), in every contract for sale there is a warranty by the seller that the title conveyed is good and its transfer rightful. This warranty also assures that the goods will be delivered free from any security interest or other lien or encumbrance, unless the buyer has knowledge of the encumbrance at the time of contracting.