Usual Covenants: Key Legal Concepts in Real Estate Transactions

Definition & Meaning

The term usual covenants in a real estate contract refers to the seller's commitments regarding the deed they will provide to the buyer. These covenants typically include:

  • The covenant to warrant and defend the title
  • The covenant of seisin, which confirms the seller has the right to sell the property
  • The covenant against encumbrances, ensuring the property is free from liens or other claims
  • The covenant for quiet enjoyment, which protects the buyer from disturbances in their ownership
  • The covenant for further assurance, which is an additional promise to secure the buyer's title

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A homeowner sells their property to a buyer and includes usual covenants in the sale contract. This ensures that the buyer can confidently purchase the home, knowing that the seller will defend their ownership against any claims.

Example 2: A buyer discovers after purchasing a property that there are liens against it. If the seller included a covenant against encumbrances, the buyer may have legal recourse against the seller for not fulfilling this obligation. (hypothetical example)

State-by-state differences

State Variation in Usual Covenants
California Usual covenants are commonly included in residential purchase agreements.
Texas Standard forms often include additional covenants specific to local laws.
New York Usual covenants may have specific wording requirements under state law.

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
Warranty deed A deed that guarantees a clear title to the buyer. Usual covenants are components of a warranty deed, ensuring specific assurances.
Quitclaim deed A deed that transfers whatever interest the seller has without warranties. Unlike usual covenants, a quitclaim deed offers no guarantees about the title.

What to do if this term applies to you

If you are involved in a real estate transaction, ensure that the contract includes the usual covenants. Review the terms carefully and consider using legal templates from US Legal Forms to streamline the process. If you encounter complexities, it may be beneficial to consult a legal professional for tailored advice.

Quick facts

  • Typical Fees: Varies by state and transaction size.
  • Jurisdiction: Primarily real estate law.
  • Possible Penalties: Legal action for breach of covenant.

Key takeaways

Frequently asked questions

They are promises made by the seller in a real estate contract regarding the title and ownership of the property.