CILEx Conveyancing Level 3 Practice Exam

Under a full title guarantee, which two covenants are implied?

The seller will do everything reasonable to give good title to the buyer; The buyer will ensure there are no encumbrances The seller has the right to dispose of the property; Property is sold free from undisclosed charges or adverse interests The seller has the right to dispose of the property; The seller will do everything reasonable to give good title to the buyer The property is sold free from undisclosed charges or adverse interests; The seller guarantees there are no planning restrictions

Correct Answer:

The seller has the right to dispose of the property; Property is sold free from undisclosed charges or adverse interests

Explanation:

Under full title guarantee, the seller gives two clear assurances about the title. First, the seller has the right to dispose of the property, meaning they own the estate and are entitled to transfer it. Second, the property is sold free from undisclosed charges or adverse interests, so the title isn’t clouded by hidden encumbrances or claims that the buyer hasn’t been warned about. This combination protects the buyer by ensuring the seller can actually transfer ownership and that there are no unknown restrictions or liens lurking in the title. The other options mix in elements that aren’t the guaranteed covenants under full title guarantee, such as planning restrictions or broader promises about “good title,” which are not the specific two implied covenants here.

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