Robert purchased a home in Pontiac using a general warranty deed. Ten years later, a title search reveals that a prior owner (before Robert's seller ever owned the property) had a judgment lien that was never satisfied and still encumbers the title. Under the covenant of general warranty in Robert's deed, which of the following BEST describes Robert's legal recourse?
Correct Answer
B) Robert can seek damages from his immediate seller under the general warranty deed covenants
Under a general warranty deed, the grantor warrants title against ALL lawful claims and demands, including those arising BEFORE the grantor's period of ownership. This is the defining feature that distinguishes a general warranty deed from a special warranty deed. Because Robert's seller conveyed title by general warranty deed, Robert can seek damages or indemnification from his immediate seller (the grantor) for the judgment lien that predates the seller's ownership. The seller, in turn, may have recourse against their own grantor under a chain of general warranty covenants running with the title.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
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