Robert purchased a duplex in Chattanooga and received a general warranty deed. Three years later, he discovers that a prior owner — two owners before his seller — had an unpaid contractor's lien on the property that was never released. Robert's seller is now claiming they knew nothing about it. Under Tennessee law, which statement is most accurate regarding Robert's rights?
Correct Answer
C) Robert can hold his seller liable under the general warranty deed because it covers claims arising before the seller's ownership
Under a general warranty deed in Tennessee, the grantor warrants the title against all lawful claims and demands whatsoever, including those that arose before the grantor acquired the property. The seller's lack of knowledge about the prior lien is not a defense — the warranty is absolute. Robert can pursue his seller for breach of the warranty covenant, and the seller in turn may have recourse against the grantor from whom they purchased.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
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.
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