Which covenant guarantees that the granted property is free from claims by third parties?

Study for the California Bar Exam. Engage with flashcards and multiple choice questions, each question offers hints and explanations. Prepare effectively for your exam!

The covenant that guarantees the granted property is free from claims by third parties is the Covenant of Warranty. This covenant serves as a promise from the grantor to defend the grantee against any claims or demands that may arise from third parties regarding the property. It asserts that the grantor is fully committed to protecting the grantee's ownership rights and ensuring that the property is free from any liens or claims.

In the context of real estate transactions, this is critical for the buyer, as it provides assurance that they will not face legal challenges to their ownership after the transfer of the property. If a third party does make a claim, the grantor is obligated to either defend against it or compensate the grantee for any loss incurred as a result.

While the Covenant of Seisin relates to the grantor's ownership and ability to convey the property, and the Covenant against encumbrances specifically addresses the presence of liens or claims that may encumber the property, it is the Covenant of Warranty that broadly encompasses protection against any claims by third parties. The Covenant of Further Assurance requires the grantor to take necessary actions to perfect the title, but it does not specifically guarantee freedom from third-party claims as the Covenant of Warranty does.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy