Covenant Against Encumbrances
Definition:
A covenant against encumbrances is a promise made by a property grantor in a deed stating that the property being conveyed is free from any liens, claims, or encumbrances other than those specifically disclosed in the deed. Encumbrances can include mortgages, easements, unpaid taxes, or restrictions that could affect ownership or use of the property. This covenant protects the grantee by ensuring that the title is clear and unburdened at the time of conveyance.
Covenant Against Encumbrances Information
The covenant against encumbrances is one of the standard covenants found in a warranty deed or general warranty deed. It guarantees that there are no hidden or undisclosed burdens on the property that could reduce its value or interfere with the grantee’s rights. If an undisclosed encumbrance is later discovered, the grantee may have legal grounds to seek compensation or damages from the grantor. The covenant applies only to encumbrances that exist at the time of the conveyance, not those created afterward. Common exceptions disclosed in deeds include utility easements or recorded restrictions that the buyer has agreed to accept.
Florida Legal Definition
In Florida, the covenant against encumbrances is recognized under real property law and is implied in certain types of deeds, such as general warranty deeds, unless specifically excluded. It ensures that the grantor conveys property free of undisclosed liens, mortgages, or other encumbrances, in accordance with Chapter 689 of the Florida Statutes. If a grantee discovers an undisclosed encumbrance after purchase, they may bring an action against the grantor for breach of covenant. Florida courts interpret this covenant as applying only to encumbrances existing at the time of conveyance, and not to those arising from the grantee’s actions or future events.
How It’s Used in Practice
In practice, the covenant against encumbrances is a key part of real estate transactions in Florida, providing assurance to buyers that they are receiving clear title. Title companies conduct title searches before closing to identify any recorded encumbrances that must be cleared or disclosed. Attorneys and real estate agents ensure that any exceptions are listed in the deed or title policy to protect both parties. If a hidden lien or easement later surfaces, the buyer may seek legal remedies under this covenant for damages equal to the loss in value or the cost to remove the encumbrance.
Key Takeaways
- A covenant against encumbrances ensures that property is conveyed free from undisclosed liens or claims.
- Applies only to encumbrances existing at the time of the deed’s delivery.
- In Florida, recognized under Chapter 689 of the Florida Statutes.
- Commonly included in general warranty deeds to protect the buyer.
- Provides legal recourse if hidden or undisclosed encumbrances are later discovered.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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