Class 5: Deeds and Title Covenants - Jan. 24

Question 1

What is a general warranty deed? (Emanuel)

Answer 1

The title policy insures undisclosed risks. This is risk spreading among the pool of insured policyholders.

Question 2

What are special or limited warranty deeds? (Emanuel)

Answer 2

The title policy insures undisclosed risks. This is risk spreading among the pool of insured policyholders.

Question 3

What is a quitclaim deed? (Emanuel)

Answer 3

a

Question 4

What are the two types of covenants? (Emanuel)

Answer 4

Present and future covenants.

Question 5

What are the present covenants? (Emanuel)

Answer 5

The covenant of seisin, right to convey, and covenant against encumbrances are all present covenants.

Question 6

What are the future covenants? (Emanuel)

Answer 6

The covenant of quiet enjoyment, covenant of warranty, and the covenant of further assurances are all future covenants.

Question 7

What is the covenant of seisin? (Emanuel)

Answer 7

The grantor promises he is seized of the estate.

Question 8

What is the covenant of the right to convey? (Emanuel)

Answer 8

The grantor promises that he has the legal right to convey the estate the deed purports to convey.

Question 9

What is the covenant against encumbrances? (Emanuel)

Answer 9

The grantor promises that he has the legal right to convey the estate the deed purports to convey.

Question 10

What is the covenant of quiet enjoyment? (Emanuel)

Answer 10

The grantor promises that the grantee may possess and quietly enjoy the land.

Question 11

What is the covenant of warranty? (Emanuel)

Answer 11

The grantor warrants the title to the grantee.

Question 12

What is the covenant of further assurances? (Emanuel)

Answer 12

The grantor promises to give whatever “further assurances” may be required in the future to vest the grantee with the title the deed purports to convey.

Question 13

What are the remedies for the breach of deed covenants? (Emanuel)

Answer 13

Damages are the remedy for the first five covenants listed above. Most states limit the grantor’s liability for damages to the purchase price. Under the covenant of further assurances, the remedy of specific performance is available as an alternative to damages.

Question 14

What is the merger doctrine? (Emanuel)

Answer 14

The merger doctrine states that at delivery of the deed, merger extinguishes the title provisions of the executory contract. The deed covenants then control.

Question 15

Collateral agreement exception to the merger doctrine? (Bender)

Answer 15

62

Question 16

What is the English rule when it comes to buyer’s remedies for title defects? (Emanuel)

Answer 16

Buyer usually recovers only out-of-pocket costs. Buyer can recover expectation damages only if seller has acted in bad faith.

Question 17

What is the American rule when it comes to buyer’s remedies for title defects? (Emanuel)

Answer 17

Buyer can select among the full range of damage awards, including expectation damages whenever the property value exceeds the contract price at the time of breach.