Robert purchased property in Syracuse using a bargain and sale deed with covenant against grantor's acts. Two years later, Robert discovers that there is an outstanding mortgage from 15 years ago that was never properly discharged, predating the previous owner's acquisition of the property. Under New York law, what recourse does Robert have against his grantor?
Correct Answer
D) Robert has no recourse because the mortgage predates his grantor's ownership period
A bargain and sale deed with covenant against grantor's acts only warrants against defects, liens, or encumbrances created by the grantor during their period of ownership. Since the outstanding mortgage predates the grantor's ownership and was not created by the grantor, Robert has no recourse under this limited covenant.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
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