Definition

Noun: A legal failure or violation of the seller's guarantee (covenant) that they hold valid and transferable ownership (good title) to a property or item being sold, and have the right to sell it. This is a specific type of contractual breach in property law.

Usage

This term is used almost exclusively in formal legal and real estate contexts. It describes a situation where a seller's promise about their legal ownership is broken, typically discovered after a sale has been completed.

Examples

• The buyer sued for breach of the covenant of warranty when a third party successfully claimed ownership of the land.
• Discovering an undisclosed heir to the estate constituted a clear breach of the covenant of warranty by the seller.
• The title insurance protected them from financial loss due to a breach of the covenant of warranty.

Advanced Usage

• "To sue for breach of the covenant of warranty": This is the standard legal action taken by a buyer when this covenant is violated. The buyer seeks compensation for their loss.
• The covenant is one of several "covenants of title" (assurances about ownership) that are often implied or explicitly included in a deed. A breach of this specific covenant means the seller has failed in their duty to defend the buyer's title and compensate them if the title fails.

Variants and Related Words

• Covenant of Warranty: The specific promise or guarantee that is breached.
• Breach of Covenant: A broader term for violating any formal promise in a contract or deed.
• Title Defect: A problem with legal ownership that may lead to a breach of the covenant of warranty.
• Warranty Deed: A type of deed that includes the covenant of warranty, offering the greatest protection to the buyer.

Synonyms

• Failure of title guarantee
• Violation of the warranty covenant
• Breach of the title warranty (less common)

Related Legal Concepts

• Quiet Enjoyment: A related covenant promising the buyer will not be disturbed in their ownership by someone with a superior legal claim.
• Right to Convey: A covenant that the seller has the legal authority to transfer the property.
• Encumbrance: A claim, lien, or liability attached to the property that may affect title.

Noun

1. a failure of the seller's guarantee of good title