DEEDS - COVENANT OF WARRANTY LIMITED BY EXCEPTIONS IN ANOTHER COVENANT

Authors

Seward R. Stroud, University of Michigan Law SchoolFollow

Abstract

A mortgaged land to B and thereafter executed a second mortgage on the same land to C. In the second mortgage, A covenanted that "they are seized of good and perfect title . . . in fee simple and that the title so conveyed is clear, free and unincumbered except . . . (the Hixton Bank mortgage) [mortgage to B] and that they will forever warrant and defend the same . . . against all claims whatsoever." The first mortgage to B was foreclosed, and B purchased at the foreclosure sale. B sold the land to A, no collusion appearing. A had borrowed the purchase price from plaintiff bank, which now seeks to foreclose its mortgage. C intervenes, basing his claim on the theory that, due to a breach of the covenant of warranty, the after-acquired title of A, which he got after foreclosure of B's mortgage, inured to the benefit of C. Held, the exception of the first mortgage of B in the mortgage to C qualified the covenant of warranty by A, so there was no warranty whereby the after-acquired title could inure to the benefit of C. Federal Farm Mortgage Gorp. v. Larson, 227 Wis. 221, 278 N. W. 421 (1938).

Recommended Citation

Seward R. Stroud, DEEDS - COVENANT OF WARRANTY LIMITED BY EXCEPTIONS IN ANOTHER COVENANT, 37 Mich. L. Rev. (1939).
Available at: https://repository.law.umich.edu/mlr/vol37/iss3/17