Under what condition are future covenants breached?

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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!

Future covenants are typically associated with the transfer of real property. They are promises made by the grantor in a deed regarding the future behavior of the property or its title. The breach of future covenants generally occurs when there is a situation that affects the tenant's right to enjoy the property, namely through actual or constructive eviction.

Actual eviction happens when a landlord physically removes a tenant from the property or denies them access to it. Constructive eviction occurs when the property becomes uninhabitable or is so severely affected that the tenant is forced to leave. In both scenarios, the promise that the tenant could utilize and enjoy the property effectively is violated, thereby breaching the future covenants.

Deed transfer, while relevant to the initiation of covenants, does not inherently breach them, as the transfer itself does not guarantee or negate the promises made. Selling the land does not automatically result in a breach of future covenants for the seller unless the new owner violates those covenants. Additionally, while the failure to perform agreed repairs might lead to disputes, it does not generally indicate a breach of the future covenants as defined in the context of real estate transactions.

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