Can a grantor's grantor be sued for a breach of covenants?

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Study for the Real Estate Transactions Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare to excel in your exam!

The correct answer is that a grantor's grantor can be sued for a breach of covenants, but only for present covenants. Present covenants refer to those that assert the status of the property at the time of the conveyance, such as the covenant of seisin (claiming to have the title being conveyed) or the covenant against encumbrances (claiming there are no undisclosed liens or easements on the property).

These types of covenants give the grantee the right to bring a lawsuit against the grantor, and by extension, can be enforced against the grantor’s grantor as well, if a breach has occurred. Future covenants, which relate to promises concerning the future enjoyment of the property, such as the covenant of warranty (which guarantees that the grantor will defend the title against claims) cannot be enforced against a grantor's grantor; those run with the land but are only enforceable by the original grantee.

This understanding hinges on the nature of the type of covenant involved - breach of present covenants provides a basis for legal action because they concern the title at the moment of the deed's transfer, while future covenants are not applicable since they pertain to anticipated future actions.

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