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the usual covenants

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covenants, the usual

The use of this expression in a real estate contract refers to the seller's obligation regarding the type of deed the seller will execute.The three usual choices are a general warranty deed,a special warranty deed,or a quitclaim deed.The general warranty deed gives assurances and promises regarding the quality of the title being transferred; a special warranty deed merely promises that the seller has not done anything to injure the title, but makes no promises about other parties and their possible claims;while a quitclaim deed merely transfers any interest the seller might have,not that the seller is saying he or she owned anything at all.As a general rule,courts have construed contract language requiring execution of a deed “with the usual covenants”to mean a general warranty deed with the covenants of seisin, right to convey, against encumbrances, quiet enjoyment,warranty,and further assurances.



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Buyout firms that depended on banks making few checks on their investments would struggle after the disappearance from the market of so-called "cov-lite" loans - riskier loans made without the usual covenants protecting lenders.
 
 
 
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