A breach of the assurance included in a real estate deed that the grantor (seller) holds clear title to the property and has the right to sell it triggers specific legal ramifications. This assurance, a fundamental protection for the grantee (buyer), guarantees against title defects and encumbrances. For instance, if a previously unknown lien surfaces against the property after the sale, it constitutes a violation of this assurance.
This assurance provides significant security to the grantee by shifting the risk of title defects onto the grantor. Historically, such covenants were crucial in establishing secure property ownership and facilitating real estate transactions. Their presence encourages confidence in the market and reduces the potential for protracted legal disputes over property rights.
