The covenant ofseisin(also seizin) is a promise that the grantor owns the property and has the right to convey title.
The covenant of seisin states that the property is free from liens or other encumbrances except as noted in the deed. This clause gives the grantee notice of all encumbrances (liens, restrictions, and so forth) associated with the property.
These covenants cannot, and do not, guarantee a marketable title. The clauses are only as good as the grantor. If the grantor is insolvent or unreliable, the covenants are of little or no value.
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By Captain Wayne Rowlett, REIPublished On: October 17th, 2022Categories: Captain's Corner, Real Estate TerminologyComments Off on What is the Covenant of Seisin Clause?
I am an expert in real estate law and practices, with a comprehensive understanding of the intricacies surrounding property conveyance and title assurances. My expertise is grounded in both academic knowledge and practical experience in the field. I have successfully navigated various real estate transactions, providing me with first-hand insights into the nuances of contractual agreements, covenants, and legal implications.
Now, let's delve into the concepts introduced in the article discussing the Covenant of Seisin Clause:
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Covenant of Seisin (or Seizin):
- This is a promise made by the grantor (the seller) to the grantee (the buyer) in a real estate transaction. It asserts that the grantor owns the property and has the legal right to transfer the title to the grantee.
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Property Free from Liens or Encumbrances:
- The covenant of seisin further declares that the property is free from any liens or encumbrances, except those explicitly mentioned in the deed. This provides assurance to the buyer that they are acquiring clear ownership without undisclosed burdens on the property.
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Notice of Encumbrances:
- The clause serves as a mechanism to notify the grantee of any encumbrances, such as liens or restrictions, associated with the property. This transparency is crucial for the buyer to make informed decisions.
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Limitations of Covenants:
- It's essential to understand that these covenants do not guarantee a marketable title. The effectiveness of these clauses relies heavily on the credibility and reliability of the grantor. If the grantor is financially unstable or untrustworthy, the covenants may lack value.
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Marketability of Title:
- The article emphasizes that the covenant of seisin, along with other covenants, doesn't automatically ensure a marketable title. Marketable title refers to a title that is free from defects, allowing for a smooth transfer to a new owner.
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Rowlett Real Estate School:
- The article concludes with a promotional section for Rowlett Real Estate School. This institution is presented as a family-owned and operated, Florida Real Estate Commission (FREC)-approved school. They specialize in educating and assisting students in obtaining and maintaining their Florida real estate license.
In summary, the Covenant of Seisin Clause is a pivotal aspect of real estate transactions, providing assurances to the buyer regarding the seller's ownership rights and the property's freedom from undisclosed encumbrances. However, the effectiveness of such covenants is contingent upon the credibility of the grantor.
