A covenant against encumbrances is a legal promise made by a seller (the covenantor) that the property being sold is free from any claims or interests that could negatively affect its value. This means that the seller assures the buyer that there are no existing liens, easements, or other rights that could interfere with the buyer's ownership or use of the property.
This term is commonly used in real estate transactions. It is a crucial part of property deeds and sales contracts, ensuring that buyers receive clear title to the property without any hidden claims. The covenant against encumbrances is relevant in civil law, particularly in property law, and can be included in legal forms that users may manage themselves with tools like US Legal Forms.
Here are a couple of examples of abatement:
(hypothetical example) A homeowner sells their house and includes a covenant against encumbrances in the sales contract. This means they assure the buyer that there are no outstanding mortgages or easements that would limit the buyer's ability to use the property as intended.
| State | Notes |
|---|---|
| California | Covenants against encumbrances are often included in property disclosures. |
| New York | Buyers may require additional assurances regarding encumbrances in the purchase agreement. |
| Texas | State law mandates specific language in deeds regarding encumbrances. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Covenant of Seisin | A promise that the seller has legal possession of the property. | Focuses on possession rather than the absence of encumbrances. |
| Covenant of Warranty | A guarantee that the seller will defend the title against claims. | Involves defending against future claims, while a covenant against encumbrances addresses existing claims. |
If you are buying property, ensure that the sales contract includes a covenant against encumbrances. This protects you from potential claims that could affect your ownership. If you are unsure about the terms, consider consulting a legal professional. You can also explore US Legal Forms for templates that can help you draft or review your agreements.
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It is a promise by the seller that the property is free from claims that could affect its value.