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Property Ownership TransferDeeds_nyHARD

Thomas conveys property in Staten Island to Maria using a full covenant and warranty deed. Three years later, Maria discovers that a utility company has an easement across the property that was created 20 years ago but was never recorded and Thomas was unaware of it. Under New York law, what recourse does Maria have?

Correct Answer

A) Maria can sue Thomas for breach of the covenant against encumbrances

Under a full covenant and warranty deed in New York, the covenant against encumbrances warrants that the property is free from all encumbrances, whether known or unknown to the grantor. Thomas's lack of knowledge about the easement does not excuse the breach of this covenant. Maria can sue for damages caused by the breach.

Answer Options
A
Maria can sue Thomas for breach of the covenant against encumbrances
B
Maria has no recourse because Thomas had no actual knowledge of the easement
C
Maria can only recover damages if she can prove Thomas acted fraudulently
D
Maria must first attempt to negotiate with the utility company before pursuing Thomas

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Related Topics & Key Terms

Key Terms:

covenant_against_encumbranceswarranty_deedbreach_of_covenanteasement_defects
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