Covenant of Further Assurance
In real estate, the covenant of further assurance is a contractual promise made by the seller (grantor) to the buyer (grantee) in a deed, ensuring that the seller will take additional actions or provide additional documents if necessary to perfect the buyer’s title to the property. This covenant serves to protect the buyer by obligating the seller to take any additional steps needed to resolve any issues that may arise regarding the transfer of ownership.
Key aspects of the covenant of further assurance include:
1. Additional Actions: The covenant requires the seller to take any additional actions that may be necessary to perfect the buyer’s title to the property. This could include executing and delivering additional documents, providing affidavits or sworn statements, or obtaining necessary signatures from third parties.
2. Resolution of Defects: If any defects or deficiencies in the title are discovered after the sale, the covenant obligates the seller to take prompt action to remedy the defects and ensure that the buyer’s title is free and clear of any encumbrances or defects.
3. Cooperation and Assistance: The covenant requires the seller to cooperate fully with the buyer and provide any assistance or cooperation necessary to resolve any issues related to the transfer of ownership. This may include providing access to records, facilitating communication with third parties, or participating in legal proceedings if necessary.
The covenant of further assurance provides buyers with additional protection and assurance that the seller will take all necessary steps to ensure that the transfer of ownership is completed successfully and that the buyer’s title to the property is secure. If the seller fails to fulfill their obligations under the covenant, the buyer may have recourse against the seller for breach of contract, including potential damages or specific performance.
Overall, the covenant of further assurance is an important component of a real estate transaction, providing buyers with confidence that the seller will take all necessary actions to perfect the buyer’s title to the property and resolve any issues that may arise during the transfer of ownership process.
