Final answer:
True, if a grant deed covenant is breached, the grantee can recover monetary losses from the grantor. A restrictive covenant in a property deed may limit the use of the property and can have historical implications, such as residential segregation.
Step-by-step explanation:
The statement is true. When a grant deed covenant is breached by the grantor, the grantee may indeed seek compensation for the monetary losses that result from the breach of the implied covenant. The grant deed contains certain guarantees that are not explicitly written in the deed but are implied by law. One such covenant is the guarantee that the grantor has the legal right to convey the property. If this covenant is breached, the buyer may recover losses from the seller. This creates an obligation for the grantor and protection for the grantee, ensuring they receive what they have been promised implicitly in the grant deed.
Regarding restrictive covenants, these are provisions in property deeds that impose restrictions on the use of the land. Such covenants have been used historically to shape residential patterns and could include, but are not limited to, prohibitions on selling property to certain racial groups, as well as other types of restrictions on property use to maintain the character of a neighborhood. While certain restrictive covenants have been found unconstitutional or otherwise invalid under fair housing laws, the concept as a whole is a significant element of property law.