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Understanding the Covenant of Good Right to Convey in Property Law
Definition & Meaning
The covenant of good right to convey is a legal promise made by a seller, affirming that they have the authority to transfer ownership of a property. This covenant ensures that the seller not only has an interest in the property but also possesses the legal capacity to make the transfer. Essentially, it guarantees that the seller is the rightful owner and has the legal ability to convey the property to another party.
Table of content
Legal Use & context
This term is commonly used in real estate transactions and property law. It is particularly relevant when a seller is transferring property to a buyer, as it protects the buyer against potential claims from third parties regarding ownership. Users can often manage these transactions themselves with the right tools, such as legal templates available through US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A homeowner sells their house to a buyer, assuring them through a covenant of good right to convey that they are the rightful owner and can legally transfer the title. If a dispute arises later regarding ownership, the buyer can rely on this covenant for protection.
Example 2: In a hypothetical example, if a seller tries to convey a property that they do not legally own, the buyer can challenge the sale based on the absence of a valid covenant of good right to convey.
State-by-state differences
Examples of state differences (not exhaustive):
State
Variation
California
Specific disclosures may be required in property sales.
New York
Title insurance is often mandated, impacting the covenant's application.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Covenant of Seizin
A promise that the seller owns the property and has the right to convey it.
Similar to the covenant of good right to convey, but focuses more on ownership rather than the capacity to convey.
Warranty Deed
A legal document that guarantees the seller's right to sell the property.
A warranty deed includes the covenant of good right to convey but also provides additional protections regarding the title.
Common misunderstandings
What to do if this term applies to you
If you are involved in a property transaction, ensure that the seller provides a covenant of good right to convey. This will protect your interests as a buyer. You can explore US Legal Forms for ready-to-use legal templates that can help you draft necessary documents. If the situation is complex, consider seeking professional legal assistance to navigate the transaction effectively.
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