23. Covenants of Title Flashcards
What are the three types of deeds for conveyance (not lease)?
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
What is the difference between covenants of title and real covenants?
Covenants of title
- Relates to title
Real covenants
- NOT relate to title
What is the purpose of general warranty deed?
Covenants vs title defects by;
- Seller
- Seller’s predecessors
What covenants are included in a general warranty deed?
(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
What is the difference between covenant of quiet enjoyment in deeds and leases?
Deed
- TP
- Lawful interference
- Claim to title
Lease
- Landlord/Landlord’s successor
- NO lawful interference
- NOT claim to title
What is required for breach of covenants of title in general warranty deed?
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)
What is the difference between present and future covenants of title?
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
What is the purpose of special warranty deed?
Covenants vs title defects by;
- Seller (NOT Seller’s predecessors)
What covenants are included in a special warranty deed?
(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)
What is the purpose of quitclaim deed?
Releases any of Seller’s interests to Buyer
- NO covenants of title (express/implied)
- EXCEPT implied covenant of marketability (BEFORE closing)
What is Estoppel by Deed?
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
Which has more control between a deed and a land sale contract?
Deed
