What is an example of a covenant and condition in a real estate transaction?

In real estate transactions, covenants and conditions are crucial elements of contracts that stipulate obligations and promises between parties involved in the deal. A covenant typically refers to a promise made in the agreement, while a condition can indicate a requirement that must be fulfilled for the agreement to be valid or enforced.

In this context, when the seller promises to deliver marketable title, it serves as a covenant. This promise is foundational to the transaction and ensures that the buyer will receive a title that is free from defects or liens, which is essential for the buyer to fully enjoy the property without legal disputes or claims from others. This assurance builds trust and stability within the transaction and is a standard expectation among real estate deals.

Other options may represent standard requirements in real estate transactions, such as having a clear title or needing a signed contract, but they don't embody the specific nature of a covenant as well as the seller's promise to deliver marketable title. Additionally, paying the full price upfront is more of a transactional condition rather than a covenant, which focuses more on the actions taken rather than promises made. Therefore, the promise of the seller to provide a marketable title is the most accurate illustration of a covenant in this scenario.