Alabama Real Estate Practice Exam

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What does the Covenant of Seisin guarantee?

  1. Protection against third-party claims

  2. That the grantor owns the property and can transfer ownership

  3. Future assistance in document correction

  4. There are no undisclosed encumbrances

The correct answer is: That the grantor owns the property and can transfer ownership

The Covenant of Seisin guarantees that the grantor actually owns the property and has the right to transfer ownership to the grantee. This means that the grantee can be assured that they are receiving a valid ownership interest in the property. Option A is incorrect because protection against third-party claims is covered by the Covenant of Warranty, not the Covenant of Seisin. Option C is incorrect because future assistance in document correction is covered by the Covenant of Further Assurance, not the Covenant of Seisin. Option D is incorrect because the Covenant of Seisin deals specifically with the ownership of the property, not undisclosed encumbrances.

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