Question

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In this example, the buyer's knowledge that the lease existed does not bar recovery of their costs to relocate the tenant based on the seller's breach of the implied covenant against further encumbrances. The buyer is entitled to rely on the grant deed and the purchase agreement. Thus, the seller was obligated under the implied covenant in the grant deed to deliver title clear of the lease they created

Answer 1

In this example, the buyer's knowledge of the lease does not prevent them from seeking recovery of costs to relocate a tenant based on the seller's breach of the implied covenant against further encumbrances.

Step-by-step explanation:

The subject of this question is Law.

The buyer in this example is seeking recovery of costs to relocate a tenant based on the seller's breach of the implied covenant against further encumbrances.

The buyer is entitled to rely on the grant deed and the purchase agreement to establish the seller's obligation to deliver title clear of the lease they created. The buyer's knowledge of the lease's existence does not bar their recovery because the seller had a duty under the implied covenant in the grant deed.