| Monograph : Encumbrances |
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Introduction |
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1. |
Title of property free from
encumbrances |
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It is usually an express term of the formal agreement
for sale and purchase that the vendor shall, save as specified
therein, give and prove good title to the property free
from encumbrances. |
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2. |
Good title |
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A good title enables the owner to hold the property
against any challenge or claim by a third party. |
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3. |
Encumbrances |
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An encumbrance is a charge or other liability to
which land is subject.
The presence of encumbrances may render the title defective
or defeasible. Unless otherwise agreed, a purchaser
is not obliged to accept the vendor's title to
a property with undesirable encumbrances. For example,
the existence of an illegal structure posing a real
threat of government re-entry is an encumbrance which
renders the title defective.
Other encumbrances (such as a legal charge) involve
financial liability and may generally be discharged
through payment of monies. |
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