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Property Ownership TransferDeeds_nyHARD

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.

Answer Options
A
Robert can sue for breach of all covenants since the deed provided full warranty protection
B
Robert can only recover if he can prove his grantor had actual knowledge of the outstanding mortgage
C
Robert can sue for breach of the covenant against encumbrances regardless of when the mortgage was created
D
Robert has no recourse because the mortgage predates his grantor's ownership period

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Related Topics & Key Terms

Key Terms:

covenant_against_grantors_actsencumbrancestitle_defectswarranty_limitations
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