Warranties of Title

Question 1

ENGLISH COVENANTS / GEN. WARR

Answer 1

i. Warrants title against all defects in title, whether they arose before or after the grantor took title.
ii. In addition to conveying whatever interest the grantor has, the grantor makes certain warranties that the title is good.

Question 2

Special Warranties

Answer 2

i. Same covenants as general warranty
ii. Contains warranties only against the grantor’s own acts or that the grantor has done nothing himself to interfere with the title during his own physical ownership, but not the acts of others.

Question 3

Quitclaim Deed

Answer 3

No guarantees: whatever I have is yours.
ii. Majority: No notice; treated same as warranty deed.
iii. Minority: No BFP status because quitclaim puts on notice.

Question 4

PRESENT COVENANTS RULES – arise at time of conveyance

Answer 4

1. Majority Rule – do not run with the land because are breached at point of conveyance
2. Minority rule – run with the land

Question 5

PRESENT COVENANTS TYPES – arise at time of conveyance

Answer 5

3. Seisin – grantor warrants that he owns the estate. To breach must be a defect in title.
4. Right to Convey – possible for person who has seisen not to have right to convey e.g. trustee. To breach must be a defect in title.
5. Against Encumbrances – grantor warrants no encumbrances. Include mortgages, liens, easements, and covenants, etc.

Question 6

FUTURE COVENANTS RULES

Answer 6

1. Run with the land. The remote purchase must be in full vertical privity the initial purchaser who received the warranty. If fee must convey fee.
2. SOL begins to run at time of eviction or when covenant is broken in future.

Question 7

FUTURE COVENANT TYPES

Answer 7

1. General Warranty – grantor says he will defend against lawful claims and compensate grantee for loss may sustain due to assertion of superior title. Breach when comes and tries to retake. Cannot claim adverse possession.
2. Quiet Enjoyment – warrants that grantee will not be disturbed in possession and enjoyment by assertion of superior title.
3. Future/further Assurances – promises that he will execute any documents required to perfect the title conveyed.

Question 8

Damages for Warranty of Title

Answer 8

1. Full failure of title: purchase price + interest (time value) Put in pre contract position before breach (affects seisin, right to convey, breach of quiet enjoyment)
2. Partial failure: portion of purchase price = the failure of title
   a. E.g. if title fails 20%  20% of purchase price

Question 9

Warranties of Title GR’s

Answer 9

Majority Rule – A latent violation of use statute’s or regulations is not considered an encumbrance making the title to the land unmarketable.

Minority Rule – If property was in violation of an ordinance, breach. Doesn’t matter if it was latent.

Question 10

Encumbrances

Answer 10

a. If encumbrance but no disturbance  nominal
b. If disturbance  grantor must pay cost of removal or if not possible  decrease in property value

Question 11

Estoppel by deed

Answer 11

i. After acquired title: equitable doctrine that states: if upon conveyance the grantor does not own title yet warrants title of the land and subsequently, he acquires title the grantor is estopped from denying he had title at the time of the deed and title is passed to the grantee.