Covenant of Right to Convey
In real estate, the covenant of right to convey is a promise made by the seller (grantor) to the buyer (grantee) in a deed, guaranteeing that the seller has the legal authority and right to transfer ownership of the property to the buyer. This covenant ensures that the seller has the legal capacity to convey the property and that there are no restrictions or limitations preventing the transfer.
The covenant of right to convey is one of the fundamental covenants typically included in a general warranty deed, which provides the highest level of protection to the buyer by warranting the quality and validity of the seller’s title to the property. By including this covenant in the deed, the seller assures the buyer that they have the legal authority and capacity to sell the property and that the transfer of ownership will be valid and enforceable.
Key aspects of the covenant of right to convey include:
1. Legal Capacity: The seller warrants that they have the legal capacity to convey the property, meaning that they have the legal right to sell the property and are not under any legal disabilities or constraints that would prevent them from doing so.
2. Authority to Transfer: The seller warrants that they have the legal authority to transfer ownership of the property, either as the sole owner or with the consent of all necessary parties, such as co-owners, trustees, or representatives of an estate.
3. Absence of Restrictions: The seller warrants that there are no legal restrictions, encumbrances, or limitations that would prevent or inhibit the transfer of ownership to the buyer. This includes ensuring that the property is not subject to any liens, mortgages, easements, or other encumbrances that would adversely affect the buyer’s title.
The covenant of right to convey provides the buyer with assurance and protection against any challenges or claims to the seller’s authority or capacity to transfer ownership of the property. If the buyer later discovers that the seller did not have the legal right to convey the property, they may have recourse against the seller for breach of this covenant, including potential damages or rescission of the sale.
Overall, the covenant of right to convey is a critical component of a general warranty deed, providing buyers with confidence in the validity and enforceability of their ownership rights to the property.