What is a covenant of further assurance?
A covenant of further assurance is a written contract in which the seller promises to take certain steps before or after closing to ensure that the buyer will be able to take title to the property. The buyer may ask for this type of covenant if he’s concerned about problems with the title, or if he wants to make sure that all necessary repairs have been completed so he can sell the property at a later date. To learn more about a covenant of further assurance, contact MacGregor Abstract.
Covenants of further assurance are common in New York real estate transactions, and they can be used in any type of sale, including an arms-length transaction between unrelated parties.
The seller’s promise may be straightforward — such as an agreement to pay any outstanding liens on the property — or more complicated, such as an agreement to provide a letter stating that there are no outstanding liens on the property. This kind of covenant may also require the seller to provide proof that all required permits were obtained before closing or proof that all necessary repairs have been completed and documented by a licensed professional.
In most cases, buyers ask for further assurance covenants because they want assurance about how their investment will be protected after the closing occurs. If you’re thinking about buying a home in New York, it’s important to know what kinds of covenants exist on properties before you make an offer.
A covenant of further assurance is a contract that obligates the original parties to the contract to take certain actions. It may be used to ensure that the parties will take certain actions, or it may be used to bind third parties who have no contractual relationship with the original parties.
The covenant of further assurance is not a legal term, but a term of art used by New York courts and lawyers. The New York Court of Appeals has held that there are two ways in which covenants can be created:
1) by express agreement, or
2) by implication.
In other words, if a party makes an offer and another party accepts it, then they have made an express agreement which creates a legal obligation on them both. But if there isn’t any such express agreement, then a court might imply one from their conduct. For example, if I ask my neighbor for his lawnmower and he gives it to me without objection even though he has no obligation to do so, then I might be able to argue that an implied contract exists between us which would make him liable for damages if he failed to return my mower at some point in the future.
A covenant of further assurance is similar in some ways but different in others from these kinds of implied contracts
A covenant of further assurance is a contract between a landlord and tenant which sets out the specific terms of their lease. It is also sometimes referred to as a “rental agreement.”
What Is a Covenant of Further Assurance?
A covenant of further assurance is an agreement between a landlord and tenant that specifies what happens if there are issues with the property after it has been rented by the tenant. It may be used to cover issues such as leaks, mold or other damages that may have occurred during the tenancy. In some cases, covenants of further assurance are used to protect against liability for injuries caused by defects in an apartment building’s structure or maintenance.
Covenants of further assurance are usually drafted by attorneys. They may be included in leases before signing or added after signing as an addendum or rider. A covenant of further assurance can also be attached to other contracts, such as home purchase agreements or commercial real estate rental agreements.