Question

The owner in fee simple of an undeveloped lot in the city promised to leave the property to her nephew upon her death. The nephew, shortly before his aunt’s death, purported to convey the lot by a general warranty deed to his son as a gift. This transfer was not recorded. Despite the aunt’s promise, the lot passed to a charity upon her death pursuant to provisions in her will. The following month, the son sold the lot to a developer but was shortly thereafter killed in an accident. When the charity’s attorneys learned of the developer’s plan to construct a building on the lot, they sued to block the construction by alleging the charity owned the lot. Which of the following breach of warranty actions can the developer successfully pursue against the nephew as a consequence of the charity’s suit?

A. Breach of the warranty against encumbrances.
B. Breach of the warranty of quiet enjoyment.
C. Breach of the warranty of the right to convey.
D. Breach of the warranty of seisin.

Answer 1

Answer: Breach of the warranty of quiet enjoyment.(B)

Step-by-step explanation:

The warranty of quiet enjoyment is when a future covenant is breached due to interference with possession. Since the action of charity conflicts with the developer’s possession of the lot, it means the warranty has been breached. The developer may then assert the breach against the nephew.

The nephew breached the warranty of the right to convey, and this is a present covenant. The lessee has the right of quiet enjoyment and the possession of property, and the possession should not be disturbed by anybody.

Answer 2

B. Breach of the warranty of quiet enjoyment.

Step-by-step explanation:

The warranty of quiet enjoyment is a future covenant that becomes breached in a situation where there is an interference with possession. It is given to grantees, such as the developer, as well as to the original grantee. In this case, the charity action interferes with the developer's possession of the said lot, this warranty has been breached, and the developer may assert that breach against the nephew.