If Deed 1 from A to B includes covenants and Deed 2 from B to C is a quitclaim deed without covenants, can C recover damages from A?

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Prepare for the Real Estate Transactions Exam with study materials and multiple choice questions with comprehensive explanations. Enhance your real estate knowledge and boost your confidence for exam day!

In real estate transactions, covenants in a deed are essential because they establish guarantees made by the grantor regarding the property in question. In the scenario where Deed 1 contains covenants from A to B, A is affirming certain promises about the property, including the right to use it and that there are no hidden encumbrances, among other things.

However, when B transfers the property to C using a quitclaim deed, that deed does not carry any covenants or warranties. A quitclaim deed simply conveys whatever interest the grantor has in the property at that moment, without assurance or guarantee of the validity or extent of that interest. Therefore, B does not provide any covenants that C can rely on.

Because of this lack of covenants in Deed 2, C faces significant limitations in making claims for damages against A. Although C may wish to pursue damages from A based on the original covenants made in Deed 1, the legal standing to do so is not present, as quitclaim deeds do not afford any recourse to the transferor beyond their current interest. Furthermore, since the covenants are not explicitly transferred to C through Deed 2, this extinguishes the ability to recover damages based on

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