Is Liability Arisen from Security Against Faults in Title a Contractual Liability or Liability in Tort?

The purpose of considering civil liability is to compensate a person who has suffered damages. This liability derives from two bases: an obligatory liability and a contractual liability. While a contractual liability occurs as a result of a breach of a binding agreement, an obligatory liability occurs due to a rule of law. Although the purpose of considering an obligatory liability and a contract liability is the same, the principles governing them are different. Accordingly, their distinction can be justified. The distinction between these two liabilities is not always easily possible. One of the issues in this regard is the determination of the basis for ‘Security Against Faults in Title”.Various opinions have been expressed concerning the basis of such liability. Some are of the view that such liability is based on the contractual relations between the parties and some takes the view that the intention of the parties are ineffective and invoke on the rule of law for the realization of liability. This paper attempts to introduce these two viewpoints and then to examine them.