This is a violation of the covenant of encumbrances.
A third party's claim, stake, or legal obligation over real estate is referred to as an encumbrance if it does not prevent the owner from transferring title. Many different categories exist for encumbrances. Financial or non-financial factors may be involved.
Encumbrances That Are Frequently Found. Numerous monetary and non-monetary claims against a piece of property might be considered encumbrances. The most typical encumbrance kinds include leases, easements, financial encumbrances, and restrictive covenants.
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