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Seller conveyed Blueacre to Buyer by general warranty deed. The deed described Blueacre as 100 acres. At the time of conveyance, Seller owned only 90 of the 100 acres because a 10-acre strip had been conveyed years earlier to Neighbor. Blueacre was also subject to a recorded utility easement and an unpaid mortgage that Seller had given to Bank. Buyer did not know about any of these matters when Buyer accepted the deed.
Six months after closing, Neighbor successfully evicted Buyer from the 10-acre strip. Bank then demanded payment of the mortgage and threatened foreclosure. The utility company continued to use its easement across Blueacre. Buyer sued Seller for breach of deed covenants. Seller argues that Buyer should have found the recorded easement and mortgage before closing and that no covenant was breached until someone actually evicted Buyer.
Discuss Buyer's covenant claims against Seller. Address present covenants, future covenants, encumbrances, timing of breach, and whether the result would differ if Seller had conveyed by quitclaim deed.