Legal Definitions - covenant of good right to convey

The covenant of good right to convey is a fundamental promise made by a seller of real estate to a buyer, typically included within a property deed. This covenant assures the buyer that the seller possesses the legal authority and ownership necessary to transfer the property title to them. Essentially, it is a guarantee that the seller is the rightful owner and has the legal power to sell the property without any undisclosed encumbrances or defects in their ownership that would prevent a valid transfer.

• Example 1: Undisclosed Co-Ownership

  Imagine Sarah sells a vacation cabin to Michael, and the deed includes a covenant of good right to convey. Unbeknownst to Michael, Sarah actually co-owns the cabin with her estranged brother, who never agreed to the sale and whose name is still on the original title. After the sale, the brother discovers the transaction and asserts his ownership rights, preventing Michael from having full, undisputed possession. Sarah has breached the covenant of good right to convey because she did not have the legal authority to transfer the entire property without her brother's consent, despite promising she did. Michael could then sue Sarah for damages resulting from this defect in title.

• Example 2: Forged Deed in the Chain of Title

  A developer purchases a parcel of land from Mr. Henderson, and the deed contains a covenant of good right to convey. Years later, during a title search for a subsequent sale, it is discovered that one of the previous deeds in the chain of ownership (before Mr. Henderson acquired the property) was a forgery. This means that the person who supposedly sold the land to Mr. Henderson never actually owned it, and therefore, Mr. Henderson never truly acquired valid title. Consequently, Mr. Henderson did not have a good right to convey the property to the developer. The developer could then pursue legal action against Mr. Henderson for breaching this covenant, as the underlying ownership was fundamentally flawed.

• Example 3: Property Subject to a Life Estate

  Mrs. Rodriguez sells a house to a young couple, including a covenant of good right to convey in the deed. Mrs. Rodriguez inherited the house from her father, but the will stipulated that her elderly aunt has a "life estate" in the property, meaning the aunt has the right to live there until her death. Mrs. Rodriguez, however, failed to disclose this to the buyers. When the couple attempts to move in, they discover the aunt living there and asserting her legal right to reside on the property. Mrs. Rodriguez breached the covenant of good right to convey because she did not have the full, unencumbered right to transfer immediate possession and full ownership to the buyers, as the property was subject to the aunt's life estate.