A buyer purchases a single-family home using a California grant deed. After closing, the buyer discovers that the seller personally granted an easement to a neighbor for driveway access before the sale and never disclosed it. Under the implied warranties of a California grant deed, does the buyer have a claim against the seller?
Correct Answer
B) Yes, because a grant deed warrants that the estate is free from undisclosed encumbrances made by the grantor
Under California Civil Code §1113, a grant deed carries an implied warranty that the estate is free from encumbrances done, made, or suffered by the grantor that have not been disclosed to the grantee. Because the seller personally created the easement and failed to disclose it before closing, the buyer has a valid claim against the seller for breach of this implied warranty.
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Which type of deed is used in the vast majority of California residential real estate transactions and carries two implied warranties under California Civil Code §1113?
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