f you own real estate and possible to accidentally breach
sell it to a buyer under a the second covenant. Damages will
general warranty deed, you amount to the price the buyer
can be liable to the buyer years paid for the property or whatever
later for some defect in the portion of it you failed to
title that you didn’t even know legally transfer to him. Some
about at the time you sold him courts won’t even require to
the real estate, and you could transfer the property back to you
end up having to pay the buyer up when you pay him the purchase
to the amount that he originally price.
paid for the real estate, or in
some cases the value of the land (2) If you breach the Covenant
if it is more than what the buyer Against Encumbrances
actually paid. Here’s how it
could happen: You can breach this one if there
is a mortgage on the property,
(1) If you breach the Covenant of for example, at the time you sell
Seisen or the covenant of the him the property. It is, then,
Right to Convey: quite possible to breach this
covenant accidentally because you
You can breach these by not breach it even if the mortgage
having a freehold estate at the was taken out by the guy who sold
time you sold the real estate the property to you and even if
(you were only renting the you didn’t know about it. Damages
property, for example), or by will amount to either the amount
having a freehold estate that was of money needed to remove the
illegal and didn’t give you the encumbrance (pay of the mortgage,
right to sell it to anyone. You for example), or the amount by
can’t easily breach the first which the market value of the
covenant accidentally, but it is real estate has been diminished
on account of the encumbrance. In superior claim to title to the
no case, though, will damages real estate (you’d be surprised
exceed the value of the land how easy it is for that to
happen), you may have to pay the
(3) If you breach the Covenants buyer back the amount he
of Warranty, Quiet Enjoyment, originally paid for the real
and/or Further Assurances estate (or a proportion of that
if he’s only been thrown off part
If your buyer ends up getting of the property).
thrown off his property by
someone who comes along with a
About the Author:
Real Estate Law in Plain English explains real estate law without the legalese.
Read more articles by:
Bob Miles
Article Source: www.iSnare.com 
