23. Covenants of Title Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

What are the three types of deeds for conveyance (not lease)?

A

General warranty deed

  • Assures covenants for title (Present + Future covenants)
  • Expressly stated
  • Against Seller + Seller’s predecessors
  • To Buyer + Buyer’s successors (future covenants only)

Special warranty deed

  • Limits implied assurances (Present covenants)
  • NOT expressly stated (implied)
  • Against Seller (NOT Seller’s predecessors)

Quitclaim deed
- Seller releases his owned interests to Buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the difference between covenants of title and real covenants?

A

Covenants of title
- Relates to title

Real covenants
- NOT relate to title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the purpose of general warranty deed?

A

Covenants vs title defects by;

  • Seller
  • Seller’s predecessors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What covenants are included in a general warranty deed?

A

(Present covenants)

Covenant of seisin
- Seller must have BOTH title + possession at time of grant

Covenant of right to convey
- Seller has power (title possession) to convey

Covenant against encumbrances

  • Visible encumbrances (Easements, profits)
  • Invisible encumbrances (Mortgages)

(Future covenants)

Covenant of quiet enjoyment
- NO TP’s interference (‘lawful’ claim of title - Buyer can NOT defend vs claim of title) towards Buyer’s possession/enjoyment of property

Covenant of warranty

  • Seller to defend Buyer vs TP’s reasonable claims of title
  • Seller to compensate Buyer for losses sustained by TP’s superior title claim (NOT TP’s successors’ claims)

Covenant for further assurances
- Seller to perform acts reasonably necessary to perfect imperfect title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the difference between covenant of quiet enjoyment in deeds and leases?

A

Deed

  • TP
  • Lawful interference
  • Claim to title

Lease

  • Landlord/Landlord’s successor
  • NO lawful interference
  • NOT claim to title
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is required for breach of covenants of title in general warranty deed?

A

Present covenants

1) Breach at time of conveyance (SoL runs)
2) Buyer (NOT Buyer’s successors) can sue Seller

Future covenants

1) Breach when Buyer/Buyer’s successor has possession
2) Buyer can sue Seller
3) Buyer’s successors can sue Seller
- For most consideration paid in chain of title (most states)
- For original consideration paid to last Buyer (other states)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the difference between present and future covenants of title?

A

Present covenants

  • Breach at time of conveyance (before possession)
  • Buyer can sue Seller

Future covenants

  • Breach at time of possession (after conveyance)
  • Buyer + Buyer’s successors can sue Seller
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the purpose of special warranty deed?

A

Covenants vs title defects by;

- Seller (NOT Seller’s predecessors)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What covenants are included in a special warranty deed?

A

(Present covenants)

Covenant that Seller has NOT conveyed to other party (except Buyer)

Covenant against encumbrances (by Seller only)

  • Visible encumbrances (Easements, profits)
  • Invisible encumbrances (Mortgages)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the purpose of quitclaim deed?

A

Releases any of Seller’s interests to Buyer

  • NO covenants of title (express/implied)
  • EXCEPT implied covenant of marketability (BEFORE closing)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is Estoppel by Deed?

A

1) Seller does NOT own title at time of conveyance to Buyer
- General warranty deed
- Special warranty deed
- NOT quitclaim deed (Seller made NO covenants of title => Buyer has NO claim of title vs Seller)

2) Seller obtains title from original owner

3) Seller’s title will automatically pass to either;
- Buyer (at time of Seller’s acquisition of title) (Seller impliedly covenants that he will convey title immediately upon its acquisition)
- TP BFP (Seller’s subsequent buyer) (Buyer has NO rights vs BFP)
- Buyer (Seller’s subsequent buyer is NOT BFP) => Accept title OR sue for breach of covenant of title in deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which has more control between a deed and a land sale contract?

A

Deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly