Question

Grant deed covenants are _____________

a) Specifically negotiated
b) Implied by law
c) Included in separate agreements
d) Presented in a separate document

Answer 1

Grant deed covenants are implied by law, included within the grant deed, and encompass guarantees about property title and the right of conveyance.

Step-by-step explanation:

Grant deed covenants are b) Implied by law. Unlike restrictive covenants, which are provisions in a deed limiting the use of the property and prohibiting certain uses, grant deed covenants are not specially negotiated or presented in a separate document. They are the promises that run with the grant deed itself and include guarantees that the grantor holds a clear title to the property, the right to convey it, and that no undisclosed encumbrances exist on the property. Restrictive covenants, on the other hand, are used by land developers to enforce particular standards in a neighborhood, such as minimum house sizes, setback lines, and aesthetic requirements.