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The buyer now seeks to collect their tenant relocation expenses from the seller's spouse for breach of the implied covenant in the grant deed signed by the spouse.

The implied covenant warrants the grantor has not encumbered title to the property in any manner, such as creating a lease not included as a title condition in the purchase agreement.

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Final answer:

The buyer seeks reimbursement for tenant relocation expenses from the seller's spouse, alleging a breach of the implied covenant in the grant deed that warrants unencumbered title. The case involves legal principles of property law and the specifics of contract obligations related to a grant deed. Recovery may be available if the deed's assurances were not honored.

Step-by-step explanation:

A seller's implied covenant within a grant deed assures a buyer that the property title is free from undisclosed encumbrances, such as unmentioned leases. If the seller's spouse signed the deed ensuring no such encumbrances and the buyer incurred tenant relocation expenses due to a breach of this covenant, the buyer may seek reimbursement for these damages from the seller's spouse. This matter involves understanding the specifics of property law and the obligations established by contract, notably the grant deed in this context.

Property transactions that involve intricate legal language and related high-stakes obligations can have significant financial repercussions if the terms are not strictly observed. Documentation related to the purchase, particularly the grant deed, should clearly state any existing liens, leases, or other conditions that could affect possession or ownership. In cases where such conditions are not properly disclosed and adhered to, legal recourse such as the recovery of relocation expenses may be available to the wronged party.

Restrictive and exclusionary covenants are other examples of provisions that can be included in property deeds; these typically govern the use of the property and, historically, have been used to enforce discriminatory practices. While unrelated to the current scenario, they exemplify the importance and impact of deed terms. The covenant at issue here is the guarantee of unencumbered title—one that should have provided clear possession, free of undisclosed tenancy arrangements.

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