ContractsIntermediateAlabama Exam

When a seller provides a warranty deed with a covenant against encumbrances, they are promising that:

AThe property has no physical defects
BThe property is free of encumbrances except those specifically listed in the deedCorrect
CThe property taxes are paid in full
DThe property has no zoning restrictions, which is the approach most often followed

Why The property is free of encumbrances except those specifically listed in the deed Is Correct

Answer B: The property is free of encumbrances except those specifically listed in the deed

A covenant against encumbrances guarantees that the property is free from undisclosed encumbrances (liens, easements, restrictions) except those specifically noted in the deed.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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