MEE Property

Question 1

General Warranty Deed

Answer 1

The grantor of a general warranty deed guarantees that he holds six covenants of title, three of which are present covenants.

Question 2

Doctrine of Merger

Answer 2

Under the doctrine of merger, the obligations contained in the contract of sale merge into the deed.

Question 3

Covenant Against Encumbrances

Answer 3

The covenant against encumbrances guarantees that the deed contained no undisclosed encumbrances.

Question 4

What is the general rule for a breach of the covenant against encumbrances?

Answer 4

General Rule: A breach of the covenant against encumbrances occurs when a property is encumbered by a mortgage, lease,
(most states): In most states, a breach occurs even if the grantee is aware of the encumbrance.
(some states): However, some states do not recognize a breach if the grantee had knowledge of the encumbrance, if it was visible, or if it benefitted the land.
(damages calculation): A buyer can recover for breach of the covenant against encumbrances the lesser of the difference in value between title with and without the defect, or the cost of removing the encumbrance.
[EX]:
easements not in deed + easements not visible + easements beneficial

Question 5

Are unrecorded easements enforceable?

Answer 5

Unrecorded easements are unenforceable.

Question 6

What is an easement in gross?

Answer 6

General Rule: An easement is in gross if it was granted to benefit a particular person (as opposed to the land).

Creation: An express easement by grant arises when it is affirmatively created by the parties in a writing that satisfied the requirements for a deed.

(Record Notice): If this written easement is granted but not recorded against the servient estate, then the easement is not enforceable against a bona fide purchaser. Otherwise, the burden of the easement in gross is transferred automatically with the transfer of the servient estate.

Question 7

What is the Implied Warranty of Fitness or Suitability?

Answer 7

A warranty of fitness or suitability is implied in a contract for the sale of a newly constructed residence. Under this type of warranty, the seller warrants they he used adequate materials and good workmanship in working on the residence.
(Coverage): The implied warranty of fitness or suitability generally covers latent construction defects - i.e., defects undiscoverable by reasonable observation or inspection. This includes a defective electrical, plumbing, or mechanical system, or a leaky roof or drainage problem that does not manifest until after the sale.
(Damages): Damages are generally based on the cost of repairs to bring the residence into compliance with the warranty.