An Ohio seller transfers a property with a limited warranty deed. After closing, the buyer discovers a title defect that originated from a prior owner's undisclosed easement. Under Ohio deed warranty law, what is the seller's liability?
Correct Answer
B) Liability only for title defects arising during the seller's period of ownership, not prior defects
A limited warranty deed (also called a special warranty deed) in Ohio warrants only that the seller has not created any title defects during their period of ownership. Defects arising from prior owners are not covered. Since the easement originated from a prior owner, the seller is not liable under the limited warranty deed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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